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Leadtimes rise as July RoHS deadline looms

Richard Wilson
Friday 14 April 2006 14:17

Component buyers are facing increased leadtimes with one manufacturer being quoted four months for some products.

The purchasing manager at one manufacturer told Electronics Weekly that leadtimes of specific items jumped from eight to 16 weeks in the last month.

It is the rising demand for components across the world which is increasing leadtimes.

Part of the problem is that some of the big contract manufacturers have reduced their purchasing forecasts to two weeks.

According to Ollie Althorpe, UK managing director of STMicroelectronics speaking at a supply chain roundtable EW held last month, the reality is that long term orders from China-based CEMs can suck product out of the market.

Another factor is the run-down of non lead-free inventory in the approach to the July RoHS deadline.

“The situation is tightening. In part that is due to global demand and in part it is the RoHS effect,” said Chris McAneny, marketing director for Arrow Northern Europe.

The situation has been aggrevated by a lack of inventory in the supply chain, in part due to RoHS but much more due to changes in buying practices since 2001.

Industry association Afdec has also indicated that increased demand for semiconductors and electromechanical components has changed ordering patterns.

“Our members have seen a significant increase in their customer’s activity, with a willingness to place scheduled orders to meet extending leadtimes in some areas,” said Afdec’s chairman Adam Fletcher.

 

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