MARKET REPORT
Q1 2024
ASC Global brings you the latest semiconductor industry findings to provide valuable guidance for maneuvering market intervals. We excel in supply chain strategies that effectively address market volatility.
If any questions or concerns arise, kindly reach out to your Account Manager or our support team at quote@ascglobal.com | +1 954 718 2950.
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LEAD TIME
Report
This section offers an intricate analysis of lead times, encompassing data from both open market and factory lines. Our meticulous data-gathering process goes to great lengths to ensure the precision and reliability of every data point, providing you with a granular view of the electronic components market landscape.
Product
Factory Lines
Manufacturer
LT
Prognosis
Price Trend
ONSEMI
18-52
Sensors
Vishay
24-52
Infineon
4-26
TE Connectivity Sensors
16-52
Infineon
14-30
Switching Regulators
Microchip
STMicroelectronics
8-20
10-20
ONSEMI
10-26
Trend
Prognosis
Open Market
ONSEMI
20-42
Timing
Microchip
7-12
Renesas
50
Interface
NXP
Renesas
16-24
20-30
Microchip
20-30
Amplifiers and Data Converters
ONSEMI
18-26
Renesas
24-36
STMicroelectronics
14-24
Analog & Power for Automotive (CAN/LIN/Smart FET
STMicroelectronics
30-40
Infineon
36-45
NXP
20-30
Multi-Source Analog/Power
ONSEMI
10-28
Diodes Inc.
10-20
STMicroelectronics
10-20
Following a year of poor consumer demand, the market is poised for a rebound. Signs of recovery emerged in late 2023 as DRAM and NAND prices reached a bottom after a prolonged decline. The memory sector anticipates substantial growth, with projections nearing 40%. Demand is fueled by the ongoing popularity of artificial intelligence (AI) applications, particularly large language models (LLMs) and generative AI.
However, the electronic components industry faces challenges. Geopolitical volatility from
conflicts and trade wars disrupts the global supply chain. Logistics hurdles escalate as vital
waterways like the Panama and Suez Canals encounter obstacles, leading to rerouted
shipments and extended lead times. Export restrictions on semiconductor manufacturing
equipment and raw materials are expected to impact countries differently, based on their
status as restricted entities.
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MOST
Tested
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HOT
Commodities
In this report, we'll provide you with an in-depth analysis of the most sought-after electronic components that are currently driving the market. From semiconductor devices to essential integrated circuits, our comprehensive viewpoint will highlight the trends, demands, and strategies shaping the electronic components landscape.
Identification of component types as shown below:
Memory
Logic & Digital
Power Products
Electromechanical
Passives
Analog
ASC's Picks
Type
Product #
Manufacturer
Lead Time
Pricing Trend
Prognosis
XCF32PFSG48C
Xilinx
12-26
SPC58EC70E3F000X
STMicroelectronics
16-20
DLW21HN900SQ2L
Murata
24-52
KSZ8999I
Microchip
12-16
LQH3NPN6R8MMRE
Murata
20-24
ULN2803ADWRt
Texas Instruments
20-40
XCF04SVOG20C
Xilinx
12-26
NFE61HT330U2A9L
Murata
20-35
LQM21PN4R7MGHL
Murata
24-35
MPC555LFMZP40
NXP Semiconductors
13-39
DSPB56367AG150
NXP Semiconductor
24-35
FQA36P15
Onsemi
12-40
Supply & Demand
Trends
Supply
The industry Supply Index saw a decline of 3 points (-1.8%),
reaching a total of 161 points this month, marking the third
consecutive month of decrease since November 2023.
The Integrated Circuits Supply Index experienced the most
significant decline, dropping 8 points (-4%) to 193 points.
Meanwhile, the Electromechanical Supply Index has steadily
decreased over the past 5 months, from its peak of 142 points
in October 2023 to its current value of 132 points, reflecting a
decrease of (-7%).
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Demand
The Industry Demand Index experienced a notable
increase of 10 points, reflecting a growth of 6.8%, and now
stands at a cumulative total of 157 points. Since October
2023, demand has steadily risen from 131 points, marking a
remarkable increase of 19.9%. This marks the fourth
consecutive month of demand growth.
Double-digit increases were observed in the demand
index values for Circuit Protection (12 points), Discrete
Semiconductors (13 points), and Passive Components (12
points).
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Industry
Updates
U.S. Chip Production Faces Challenges Amidst Asian Dominance
Last Updated: 5/10/24
U.S. Chip Production Struggles Amid Asian Dominance
The U.S. holds only 12% of global chip manufacturing, with much of the industry now in Asia. President Biden's Chips Act aims to reverse this trend by using taxpayer funds to support crucial companies for national security.
Intel's partnership with the Department of Commerce will include workforce training initiatives, channeling over $150 million into union apprentice programs across four sites, as part of efforts to bolster the domestic semiconductor industry.
Potential Shortages of Integrated Circuits (ICs)
Manufacturers are indicating a rise in demand from automotive customers, potentially resulting in shortages of IC if customer orders coincide with production reductions.
If the projected shortage materializes, the market could experience its effects by late 2024 or early 2025.
Intel and Solidigm Prices Rise
Costs for the desktop 12th and 13th Intel’s Gen CPUs are reportedly not open to negotiation or any special rebate pricing.
Intel and Solidgim’s SDD costs will reportedly increase by 15% - 20% this quarter.
Samsung’s Employees Might Strike
Samsung employees in South Korean facilities may go on strike in the coming months if their demands are not met.
The potential strike is expected to primarily affect the consumer electronics sector of the business, with minimal impact on foundry or memory operations.
Microchip’s Lead Times Expected to Increase
Market reports suggest that raw material shortages are affecting manufacturing capabilities, particularly in the availability of wafers required for IC production.
If the supply situation doesn't improve, lead times are anticipated to extend in the upcoming months. Some products, which currently have lead times of 8–12 weeks, may experience a significant increase to 20 weeks.
Passives Component Pre-Planned Reductions
Manufacturers are indicating a potential shortage of passive components in the upcoming quarters, guided by an increase in order pull-ins aligning with pre-planned production reductions.
Furthermore, there's been a surge in demand from both Chinese and U.S. customers.
Micron's DDR5 Launch and DRAM Prices Rise
Micron's DDR5 launch, including the monodie version of D5 128G, is anticipated in upcoming quarters, potentially triggering competition. Supply constraints might arise in the second half due to CSP activities.
Lead times for DRAM remain unchanged post-earthquake, but prices are expected to rise by around 20% this quarter.
The ongoing conflict in Ukraine poses a threat to the availability of palladium and neon.
AI Evolves, Chipmakers Adjust:
The rapid advancement of artificial intelligence (AI) technology, which is projected to reach $1.3 trillion in growth by 2032, is a significant catalyst for activity in the electronic component market. The Semiconductor Industry Association (SIA) forecasts that the increasing demand for AI and the consistent growth of automotive chips will bolster global chip sales in 2024.
Vulnerability and Instability Arising from the war in Ukraine:
The ongoing conflict in Ukraine poses a threat to the availability of palladium and neon. Russia supplies 35% of the palladium used in the United States, which is a crucial component for sensors and memory modules. Additionally, Ukraine holds nearly 70% of the world's neon gas capacity, essential for semiconductor lithography. The conflict also puts argon, krypton, and xenon at risk of shortages, leading to potential price fluctuations.
Red Sea Crisis Impacts Automotive Supply Chain in Europe:
Production halts have afflicted numerous European automotive manufacturers' factories due to issues in parts transportation. Primarily, this stems from approximately 70% of automotive parts in the European market being sourced from Asia and transported via the Red Sea. Persistent port congestion in the Red Sea and Suez Canal could potentially result in substantially increased costs and prolonged transit times for auto exports from China to Europe.
Prices of Automotive Inductors Have Risen Sharply Due to the Earthquake in Japan:
The earthquake in Japan in the beginning of 2024 prompted market panic and hoarding behavior. Inventories of automotive-grade inductors from Murata's dealers were depleted, leading to a significant surge in prices. Conversely, the price of Vishay's industrial resistor products might experience a downward trend due to the decrease in raw material costs.
Geopolitical Shifts Drive Aerospace & Defense Supply Strategies:
The aerospace and defense industries continue to experience robust demand, with commercial airplanes advancing exponentially in terms of electrical complexity. This underscores the critical importance of a reliable supply source for parts.
Recent geopolitical events are affecting demand in the defense sector. Recognizing the imperative of national security objectives, the U.S. Government and its contractors are unwilling to take risks. Consequently, industry giants have initiated collaborations with non-franchised distributors to bolster supply chain resilience and meet their quotas.
The U.S. Funds Microchip to Help Expand the Influence of Mature Process Chips:
The U.S. Department of Commerce has announced its intention to provide $162 million in government grants to Microchip. The aim is to bolster U.S. semiconductor and single-chip microcomputer production capabilities. With this funding, Microchip will be able to significantly expand its mature node semiconductor and MCU production at two U.S. factories, effectively tripling their output. This strategic investment aims to diminish reliance on foreign manufacturing and strengthen supply chain resilience.
ASC Global's Solutions: Tackling Component Challenges & Boosting Supply Chain Resilience in 2024
Manufacturers faced challenges like disruptions and shortages. Companies responded by enhancing resilience and cutting costs. Tips for 2024 include: Proactive supply chain management, rigorous risk assessments, sustainability integration, tech investments, and, a focus on resilience through real-time transparency.
ASC Global recently participated in two major electronic component trade shows: Electronica South China 2023 and electronica India 2023. These events provided the company with valuable opportunities to connect with potential customers in the global market, strengthen relationships with existing partners, and showcase its comprehensive range of electronic components and services.