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Electronics Production | March 21, 2006

Increased lead times on components

Some EMS providers have indicated for evertiq that the lead times on components have increased dramatically. The coming RoHS directive could be one explanation but that's far from the whole truth.
”Of course the RoHS directive has boosted the development but that's far from the whole truth”, Arrow Nordic Sweden AB's Sales Manager Jan Dahlén told evertiq. One EMS provider told evertiq that the lead times on components now are about 16 weeks not eight weeks as before. “This is depending on a number of factors but the absolute main reason is that the temperature is very high in the industry at the moment”, Jahn Dahlén told evertiq.

The total electronics market has shown growth for eight of the last 12 quarters and the inventories are reportedly at the lowest level since 2003. This is partly beeing impacted by the RoHS directive.

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