Current market conditions indicate component shortages are expected to last longer than expected, still lingering as we move into 2018. Like other distributors, WPG Americas, subsidiary of WPG Holdings, the largest global electronic components distributor, is navigating these challenges and working diligently to provide the best solutions to our customers.
WPGA’s focused supplier line cards target five specific units: Lighting, Embedded Displays, Power, Storage and Intelligent Connectivity. We asked key players from each business unit to share their knowledge of the current semiconductor market demand, conditions and predictions for the upcoming year.
Lighting Trends
The demand for energy-efficient lighting solutions across sectors including hospitality, retail, architecture, commercial and residential, has led to the increased adoption of LED lighting worldwide. The competitive landscape promotes the expansion of LED usage, causing the demand to climb even higher. Most lighting solution component lead times are remaining stable at six to 14 weeks.
Click Here for the Specialized Lighting Solutions Line Card
Embedded Displays Predictions
The embedded market is seeing LCD lead times from major TFT suppliers between 14 to 20 weeks on average. In addition, the component shortages are expected to continue affecting LCD panel manufacturing, keeping those lead times long. We are advising customers to get their Q1 demand on order as soon as possible.
Click Here for the Specialized Embedded Solutions Line Card
Push for Power
Market research shows lead times for power discrete semiconductors are stretching anywhere between eight to 24 weeks, even 30 weeks for some MOSFETs and rectifier products due to strong global demand. This situation along with extended lead times on electrolytic capacitors is also adversely affecting system level power supplies. Lead times are currently at 12 to 20 weeks.
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Storage Shortage
The NAND market will see increased SSD adoption, even with strong price increases, and a 45% increase in overall demand YoY, led by smartphone standard storage increases 16GB to 32GB. In addition, the DRAM market is also affected, as usage trends are requiring more DRAM than ever. In short, the storage and memory market will continue to be constrained as we move into 2018, with product lead times stretching anywhere from four to 33 weeks.
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Impact of Intelligent Connectivity
With the continued boom of IoT application areas, especially automotive, mobile devices, consumer electronics, and factory automation, OEMs are fighting to find new sources to supply parts that were previously easy to find. This higher demand directly affects the availability of components and lead times, and now is the time to manage the supply chain as effectively as possible to still meet customer needs.
Click Here for the Specialized Intelligent Connectivity Solutions Line Card
The team at WPG Americas is staying abreast to market trends and changes to the semiconductor technology environment. Our simplified line cards allow us to stay nimble in the face of these challenges, and we are dedicated to providing our customers the best total solutions within these market constraints. A link to the general Line Card can be found here.