Since last year, price increase and extended lead time have been witnessed across many electronic component manufacturing segments. This report is to provide a preview and analysis of some heated segments in the electronics manufacturing industry such as MLCC, DRAM, Microcontroller Unit and NOR Flash. A preliminary market overview was performed and major players were analyzed in every segment to provide a whole picture. Pervasive price increases and lead time extensions are happening in these segments with no sign of the trend turning around this year. An investigation of the reason behind these unprecedented changes determined that it mostly resulted from the current capacity being unable to keep up with a substantially higher demand. Strategy changes from major manufacturers further exacerbate the situation. A major player’s exit may lead to a huge imbalance between supply and demand, driving up price and prolonging the lead time. Additionally, current major manufacturers are very wary of expanding their capacity; the largest MLCC manufacturers are Japanese, South Korean and Taiwanese companies and the depreciation of U.S. dollar hurts their revenue, leading to growing pressure in costing.
This report includes a future trend probability which is provided to assist buying parties (e.g., EMS, OEM) in preparing their supply chain and production mitigation plans.
To continue reading the Material Price Report White Paper, please download the PDF version below.
Download: Material Price Report (Aug2017)
Han Di is a contributor at the operational and strategic levels in supply chain development and is a Supply Chain Specialist at Silecta Inc., a supply chain services company.