Lead Times head on down except for power

Update: August 11, 2023

The trend is partly due to lower consumer demand and heightened raw material costs.

Lead times for power technologies are stabilising or growing as supply will continue to be limited throughout Q2.

Production costs remain high due to inflation, raw material prices and manufacturing backlogs.

Discrete and Optoelectronics – The product market for discrete devices and optoelectronics is experiencing a slowdown due to the ongoing market correction and high inventory levels. The high stock levels have stabilized and are expected to remain at high levels throughout Q2. Lead times have been reduced due to lower consumer demand. However, demand for these components from the automotive, industrial and energy sectors is stabilizing or growing. Lead times are generally decreasing into Q2 except for power technologies where they are still limited in supply until 1H 2023.

Passives – Lead times have been reduced for standard technologies but electrolytic, hybrid Capacitors, and special-purpose resistors have been extended. Automotive products are also experiencing extended lead times with no signs of easing yet. Raw material prices have a significant effect on the pricing in this market. Demand for passive components is expected to increase significantly in demand. This increased demand, along with the high quantities required per board, will result in factory capacity limitations.

Interconnect and Electromechanical – The inventory levels are increasing for connectors; lead times are relatively short with an average of 10-20 weeks. Lead times for relays are extended where they are estimated to be 30 weeks. Suppliers of these components are expected to increase prices due to raw material prices.

Microcontrollers, microprocessors and FPGA – As per Q1, the consumer market is slowing down and there is reduced global demand for goods made in China. The average lead time for these components is 22-26 weeks. NXP and Renesas have increased their prices since January and Microchip since March. Capacity issues in Q1 have resulted in manufacturers continuing to impose NCNR (non-cancellable & non-returnable) terms for distributors and customers. There is still a backlog of manufacturing, especially in EMEA, and to help with the recovery, supply is expected to tighten again.

Analogue and Memory – The production costs for Analogue and Memory components remain high due to inflation, heightened costs, and declining disposable incomes. Price reductions are unlikely due to the costs of investment needed to improve capacity. .

Raw Material Prices:

Material

Increase/Decrease

Price Changes

Copper

1.70%

Nickel

4.60%

Tin

20%

Plastics (PE)

7%

Lithium

26%

 

 

 

 

 

Component Lead Times:

 

Technology

Manufacturer

Lead Time (Wks)

Logic

Nexperia

26-45

On Semiconductor

26-52

Texas Instruments

12-35

Linear

STM

16-40

Texas Instruments

50-60

On Semiconductor

12-16

Vishay

14-18

Data Converters

Analog Devices

32-38

Texas Instruments

25-70

STM

30-35

Power Management

STM

30-40

Texas Instruments

50-60

Infineon

30-45

Analog Devices

30-34

8 Bit

NXP

52-65

Microchip

32-75

STM

45-65

Infineon

28-52

16 Bit

Texas Instruments

35-70

Infineon

24-52

NXP

52-65

Microchip

32-75

STM

45-65

32 Bit

Microchip

32-75

NXP

52-99

STM

52-65

Infineon

20-52

DSP

Analog Devices

18-26

NXP

52-65

Texas Instruments

35-70

 

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