ELECTRONICS NEWS HIGHLIGHTS 09/05/2022

Chip shortage is easing, smartphone production falls, Analog Devices increases price

1. NETWORK CHIP SHORTAGE IS EASING 

The lead times for major chips are still 50 weeks or more, but supply has increased significantly. The order fulfillment rate improved from 75% in the second half of 2021 to 85% in the second quarter of 2022, and is expected to reach nearly 90% in the third quarter. The IC shortage faced by network communication products gradually eased in the second half of 2022. This was mainly due to weak demand for consumer electronics, freeing up supply for network communication chips. 

See more: https://www.semimedia.cc/?p=13013 

2. SMARTPHONE PRODUCTION FALLS 6% IN Q2 TO 292 MILLION UNITS 

Second-half 2022 smartphone production planning was quite conservative as brands gave priority to adjusting distribution channel inventory. At the same time, weak market demand worsened on the back of China’s pandemic controls and brands were forced to lower their production targets. As a whole, production volume dropped by 6% in second-quarter 2022, even though volume had always grown in previous second quarters. Global output was only about 292 million units, down 5% on the same period in 2021 when a second wave of pandemic outbreaks occurred in South Asia and Southeast Asia. 

See more:  https://www.semiconductor-today.com/news_items/2022/sep/trendforce-010922.shtml 

3. ANALOG DEVICES ISSUES PRICE INCREASE NOTICE 

Analog Devices said in the notice that semiconductor manufacturing continues to see supply constraints and increase in cost associated with raw materials at suppliers. They have chosen to pass those costs on to Analog Devices and Analog Devices have absorbed as much of that as possible, but can no longer sustain the current pricing. As a result, Analog Devices will increase the price since September 25, 2022 

See more: https://www.semimedia.cc/?p=13037  

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