Global passive component shortage drives prices up 75%

May 10, 2018 // By Peter Clarke
Passive components, such as multilayer ceramic chip capacitors and surface-mount resistors, are in such short supply that lead times can exceed 50 weeks for some parts, according to electronics manufacturing services (EMS) provider Chemigraphic Ltd. (Crawley, England).

The company said it has been able to secure stocks on behalf of its customers to provide sustainable supply, but the market tightening over the last few weeks has resulted in many manufacturers no longer taking orders for parts. Another consequence of the demand-supply imbalance has been prices that have been increased by more than 75 percent.

"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," said Jemma Heath, supply chain manager at Chemigraphic, in a statement.

"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."

Chemigraphic opened a sourcing office in Shenzhen, China, in January 2018.

Related links and articles:

www.chemigraphic.co.uk

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