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The electronic component market is becoming increasingly difficult in terms of stock availability, and the ability for suppliers further down the chain to maintain pricing over longer periods of time. Unfortunately, this is an industry wide problem and not just affecting a handful of suppliers or product lines.
Memory, especially NOR and NAND Flash, has been an ongoing issue for at least 18 months with little improvement on conditions. We have also seen device manufacturers cancel ‘Last Time Buy’ stock that had been on order for over six months. Not good.
In addition to memory product, other commodities are now following this trend, with entire product families on allocation, price increases being advised at point of shipping and extended lead-times on most lines.
Perhaps the most concerning issue of 2018 so far, is the lack of availability of chip capacitors and resistors. These are no longer widely available as ex-stock items, be it from high service suppliers such as Farnell, or from authorised distributors, like Anglia and Arrow.
As common value chip resistors and capacitors are integral to most printed circuit board assemblies (PCBAs), it’s hard to believe they are no longer readily available in significant quantities. And what once used to cost less than a penny has already reached double digits in some cases.
Working Closely with Your EMS Provider
Hoping to escape electronic component allocation by simply ignoring this issue is a risky strategy. It's therefore important to work closer than ever with your assembly partner.
Here are seven ways in which you can help them:
Share your demand forecast as far out as possible so that your EMS provider can replicate your component demand with their supply chain partners. If you only give your EMS provider short term visibility of your requirements, they might not be able to secure the level of stock you need when you place your next set of orders which will impact the overall lead-time back to you.


KeyWords Tag：First Creation Industry: EMS Assembly Products