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|NewsletterManufacturers may not have recovered sufficiently from the last boom-bust cycle to meet a sustained increase in demand, according to Edmund Coady, sales director for distributor and manufacturer Charcroft Electronics.
“Lead-times are already lengthening and the industry could be drifting towards a new cycle of allocation,” warned Coady.
“Demand is increasing from all corners of the consumer market as iPods, satellite navigation, flat-screen television and other high-technology products move into the mainstream.”
Coady suggested that the industry should reflect on earlier experiences when higher-than-expected demand for mobile phones pitched the industry into a downward spiral of product allocation, over-ordering and even double-ordering.
In the passives sector, Charcroft is seeing lead-times going out on many products, particularly on SMPS capacitors, chip resistors and multilayer ceramics in values above 10µF.
Passive manufacturers Vishay and Syfer Technology agreed that lead-times are under pressure “across the board”, citing a late rush for RoHS-compliant product.