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DRAM price increases will ease

There should be ample supply of DRAM through the rest of the year as memory IC manufacturers continue to increase capacity. Memory IC buyers can expect a 2-5 per cent increase in prices for DRAM this year as the market grows 25 per cent to $118 billion because of continued strong demand from the computer segment especially from servers used in data centers. It will mark the second straight year of 20 per cent or more revenue growth for DRAMs. Last year the DRAM market grew 25 per cent to $94 billion, according to researcher Yole Développement, a market research…

Specialist distributors expect another strong year for sales

Component demand remains healthy, prices are increasing and some component lead times are still long. Specialist electronics distributors are cautiously optimistic that strong component demand will continue through the year and sales growth will rise to high single-digit or double-digit levels this year. Some specialist distributors express concern that electronics buyers scheduled orders last year for 2022 because of long lead times for crucial semiconductors and other components and that purchase orders would weaken this year. But lead times are still long for many parts and buyers may end up scheduling orders for 2023 later this year. Greg Peloquin, executive…

Lead times will remain long for discretes through 2022

Prices for MOSFETS, IGBTs and rectifiers increased in 2021 and there could be more price hikes in 2022. Buyers can expect continued tight supply for discrete semiconductors through most of 2022 but supply could loosen towards the end of the year and lead times for some discretes could shrink a bit. However, lead times will still remain long with some chip manufacturers saying that MOSFETs, rectifiers and transient voltage suppressors (TVS) will have lead times of 52 weeks for most of the year but rectifiers and TVS parts could fall to the 30- to 40- week range later in the…

Distributors see rising sales from auto industry

The auto industry is facing continuing chip shortages and many tier 1-4 automotive suppliers are turning to distributors for parts and services. Distributors report that sales to tier 1-4 automotive suppliers have grown significantly over the last two years as many semiconductors and other components needed by the automotive industry have been in short supply. While chip shortages have contributed to distribution sales growth, it is not the only reason distributor business in the automotive segment has grown robustly. Distributors note that electronic content in vehicles continues to increase as automakers design in more sophisticated advanced driver assistance systems, which…

Chip market growth will slow in 2022

Demand for integrated circuits and discretes will weaken in 2022 resulting in more stable pricing and slower revenue growth. The global semiconductor market will grow 8.8 per cent to $601 billion in 2022 after rising more than 25 per cent in 2021, according to World Semiconductor Trade Statistics. Despite supply chain challenges caused by the Covid-19 pandemic, worldwide chip sales were expected to end 2021 increasing to $552.9 billion after growing 6.8 per cent in 2020. The 2021 growth rate was the strongest growth rate for the semiconductor industry since 2010 when revenue increased 31.8 per cent, according to WSTS. Strong…

North American distribution sales growth will slow in 2022

However, while component demand won’t be as strong as 2021, distributors say high single-digit to double-digit growth is possible. Some distributors reported more than 40 per cent sales growth in North America in 2021 because of surging component demand, higher prices and double-ordering of some parts by buyers fearful that their companies production lines would shut down because of a lack of components. Distributors expect sales growth will continue in 2022 but acknowledge that growth will not be as robust as last year. Some predict mid-to-high single-digit growth, while others say double-digit growth is possible because durable demand and tighter-than-normal…

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