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Semiconductor midyear outlook: Chip revenue will rise nearly 20% in 2021

Strong revenue growth and robust demand is compelling chipmakers to add production capacity which should ease tight supply conditions later this year. The worldwide semiconductor market will increase 19.7 per cent to $527 billion in 2021 because of strong demand from multiple customer segments, limited supply and rising prices for some chips. Memory IC revenue, including NAND flash and DRAM, will rise 31.7 per cent, while sensor sales growth increases 22.4 per cent and analog IC revenue grows 21.7 per cent, according to the midyear outlook of World Semiconductor Trade Statistics (WSTS). Most other semiconductor products will post double-digit sales…

Distributors say IoT will drive sales growth opportunities

Growing use of IoT, especially in industrial applications, will result in greater component demand over the next five years. Most electronics distributors can’t pinpoint how much Internet of Things (IoT) applications are impacting component sales but most believe IoT will become a more important driver as more consumer and commercial devices and factory automation equipment become IoT capable. Much of the sales growth of components used in IoT applications will come from companies deploying IoT in factories because IoT analytics can identify potential problems in production equipment before they become more serious and cause line shutdowns. In fact, a survey…

Communications including 5G will drive the components market

While electronics content in cars and trucks is increasing, the auto industry will continue to account for a relatively small percentage of semiconductor sales over the next five years. It’s no secret that electronics buyers in the automotive industry have been scrambling to purchase microcontrollers, power management ICs and other semiconductors because of tight supply after production of many components and finished goods slowed down last year because of the COVID-19 pandemic. Exacerbating the problem for auto industry buyers that electronics content in vehicles is rising as more electronics systems are being designed into more cars and more electric vehicles…

Business booms for high-service distributors

An increase in design engineering activity and tight supply of chips and other components is resulting in skyrocketing sales for high-service distributors. High-service electronics distributors have weathered the coronavirus pandemic with some reporting a 50 per cent increase in sales during the first five months of 2021. Most high-service distributors focus on design and sell small quantities of parts to engineers designing new products. Design activity has increased significantly in the first half of 2021. However, high-service distributors also report they are seeing strong sales from buyers at OEMs and electronics manufacturing services (EMS) providers who are looking for shortage…

It’s not just semiconductors that are in short supply

Lead times are stretching and prices are rising for passives, connectors and power supplies. It’s no secret that electronics purchasers are being challenged by allocations, shortages and long lead times for a variety of semiconductors including microcontrollers, diodes, graphics RAM chips and power semiconductors, among others. However, while chip shortages seem to be garnering most of the attention, supply is tight and lead times are stretching for many capacitors, resistors, and other passive components, connectors, electromechanical devices and power supplies. Prices are also increasing for many electronic components , ranging from the mid-single digits to 30 per cent. David Stein,…

It’s not just about inventory and timely delivery anymore

Buyers need distributors to provide more technical advice, market intelligence and cost-reducing value-added and supply chain services. In the not-so- distant past the expectations that many electronics purchasers had of distributors were that distributors had the parts buyers needed in stock and would be able deliver them in a timely fashion. But times have changed and buyers now expect much more from distributors. Some buyers regard their distributors as strategic partners and rely on them not just for parts and timely delivery, but also for cost-cutting value-added and supply chain services and for need-to-know market intelligence about the supply chain….

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