-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueComing to Terms With AI
In this issue, we examine the profound effect artificial intelligence and machine learning are having on manufacturing and business processes. We follow technology, innovation, and money as automation becomes the new key indicator of growth in our industry.
Box Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
Supply Chain Update and the Impact of 5G
December 4, 2019 | Nolan Johnson, I-Connect007Estimated reading time: 2 minutes
I caught up with Stephanie Martin, senior VP of global supply at Vexos, to talk about the current landscape of the industry from an EMS perspective. Stephanie describes an ongoing technology shift occurring with the industry’s move to smaller case sizes and why it’s in the customer’s best interest to look at the design cycle and go as small as they can on components.
Nolan Johnson: Stephanie, you were so helpful earlier this year when we discussed parts shortages; you gave some great global insight. What has changed in the industry?
Stephanie Martin: This year has had significant changes. Last year through December of 2018, we were in the supercycle with shortages and extremely long lead times. MLCCs were out for 52 weeks, and several suppliers did not even accept orders. They were in that tight of supply, so everything was fully allocated, and we had that across a number of components. Lead times extended, and prices rose; it was a pretty bad situation. I’ve been in electronics for over 20 years, and it was the worst situation from a buying perspective I have ever seen.
Starting in January of 2019, things started to ease up. We first caught wind of some easing up in Asia in late Q4 and early Q1 this year. The distributors in Asia told me their business was down 8% in Q4, and then an additional 10% in Q1 of this year. In their opinion, this was primarily driven by a reduction in the automotive industry in Chinese manufacturing and a reduction in the number of cellphones being built. As a result, that eased up a lot of material. By the end of Q1 of this year, we saw available supply in most commodities. Prices have been dropping and stabilizing. Lead times are down to what we would consider being near normal, which is somewhere in the 10–12-week range for most components as opposed to 30+ weeks last year.
However, some spotty problems can still happen. We’re still struggling with MOSFETs, which are still in the 30+ week range. I don’t see any real change in that happening yet, but most of the other components—particularly the MLCCs and smaller sizes, such as 0201s and some 0402s—are down to reasonable lead times. The larger case sizes for the MLCCs are still constrained, of which the sizes 0603, 0805, and 1206 are the most common; those still have longer lead times with 25 weeks or more, and we do not expect to see them improve at all.
To read this entire interview, which appeared in the November 2019 issue of SMT007 Magazine, click here.
Suggested Items
PCB Market Size to Grow by $29.06B from 2024-2028
05/17/2024 | PRNewswireThe global printed circuit board (PCB) market size is estimated to grow by USD 29.06 bn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 6.6% during the forecast period.
Indium Experts to Present on High-Temperature, Lead-Free Solder Paste and High Reliability Liquid Metal Alloys Poster at ECTC
05/16/2024 | Indium CorporationIndium Corporation Research Associate Kyle Aserian will deliver a presentation at the 74th Electronic Components and Technology Conference (ECTC) on May 31, in Denver, Colorado.
SMTC Strengthens Leadership for Future Growth: Ed Smith Promoted to Executive Chairman; Mike Buseman Joins as CEO
05/15/2024 | BUSINESS WIRESMTC Corporation, a leading North American provider of electronics manufacturing services, is pleased to announce the appointment of Mike Buseman as President & Chief Executive Officer, effective May 13, 2024.
Siemens Partners with Microsoft to Deliver AI-enhanced Solutions for Resilient Product Lifecycle Management with Azure
05/14/2024 | PRNewswireSiemens Digital Industries Software announced an expansion of its partnership with Microsoft to make the Siemens Xcelerator as a Service portfolio of industry software available through Microsoft's cloud and AI platform Azure and integrating it with generative AI and Copilot features.
SEMI Recognizes U.S. Senator Majority Leader Charles Schumer With Government Leadership Award for Outstanding Support of U.S. Chip Industry
05/13/2024 | SEMISEMI, the industry association serving the global electronics design and manufacturing supply chain, announced that the SEMI North America Advisory Board has presented the annual SEMI Americas Government Leadership Award to U.S. Senate Majority Leader Charles (Chuck) Schumer in recognition of his extraordinary support of the U.S. semiconductor industry.