MARKET UPDATES – 07.04.21

GENERAL OVERVIEW

  • Lead times across all electronic component products continue to increase. Demand remains strong, against previous predictions, therefore we are seeing shortages in supply.

 

  • There is serious chip shortages that will lead to supply issues and higher prices for single board computers and other electronic products.

 

  • Besides price increases, some Semiconductors will not be available at any price with extended periods as lead times of up to 52 weeks have been reported.

 

  • Material Manufacturers are attempting to put in place purchasing restrictions in order to limit over procurement (panic buying).

 

  • Customers are still being advised to place order schedules out to at least Q4 2021 as lead times from most suppliers are being pushed out further due to:
    • Over forecasted demand.
    • Sea Freight increasing transportation costs and adding to delivery times.
    • Constraints on raw materials.
    • Factory Closures due to COVID-19 restrictions.