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© Chemigraphics Electronics Production | May 11, 2018

Lead times of 50 weeks or more; EMS-provider takes steps to mitigate market slowdown

Lead times for MLCC SMD Capacitors and SMD Resistors have been experiencing extended lead times or allocation times for the last few quarters, and in some cases lead times are now exceeding 50 weeks.
UK-based EMS-provider Chemigraphic is working closely with its supplier network and customers to combat an industry-wide delay on the manufacture and delivery of passive electronic components. Through continuous market monitoring and analysis, Chemigraphic secured large amounts of stock on behalf of its customers to provide sustainable supply, a press release states. However, the market has tightened further over the last few weeks with many manufacturers of these parts no longer taking additional orders. The up take in demand is also having a negative effect on pricing, with some prices increasing beyond 75 percent.

Jemma Heath, Supply Chain Manager at Chemigraphic, comments: “Having once been easily accessible, staple electronic components, these parts have seen a huge increase in demand due to growing markets such as smartphones and electric vehicles. As a result, other industry sectors are seeing a huge squeeze on the availability and delivery times surrounding these components, as well as adverse pricing trends".

“We always ensure we regularly monitor the market to stay on top of such trends, and this has enabled us to increase our stock holding of these parts as this issue develops. However, as our analysis indicates these conditions are unlikely to ease for at least the next 12 months, we are asking our customers to work with us to stay on top of demand and allow us to forward plan as far in advance as possible", she continues.

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July 18 2018 5:55 pm V10.0.0-1