ELECTRONICS NEWS HIGHLIGHTS 03/21/2022

ELECTRONICS NEWS HIGHLIGHTS 03/21/2022

1. LEAD TIMES ON THE RISE AGAIN IN FEBRUARY

Though the lag times have now increased again, they aren’t growing quite as quickly as during much of 2021. Delivery times for microcontrollers reached a high of 35.7 weeks in February. Lead times also increased by a week and a half for power-management components.

Details: https://www.bloomberg.com/news/articles/2022-03-11/wait-times-for-chip-deliveries-grow-again-as-shortages-persist   

2. THE GLOBAL CHIP SHORTAGE COULD LAST UNTIL 2023

Because demand will remain high and supply will remain constrained, expect this shortage to last through 2022 and into 2023. Auto-makers: Ford, BMW, Volkswagen, they all highlighted that there’s bottlenecks in capacity and they can’t get the chips they need to manufacture the new cars.  The recent chip shortages have encouraged inventory hoarding along chip production chains, widening the gap between expanding demand and stagnant supply.

Details: https://www.cnbc.com/2021/05/12/the-global-chip-shortage-could-last-until-2023-.html  

3. NXP ENDS DISTRIBUTION AGREEMENT WITH WPG

WPG, the world's second largest component distributor, issued an announcement that its subsidiary SAC Group was notified by NXP that it has terminated the distribution contract on March 1, 2022 due to business adjustments.  The impact on WPG's revenue is expected to be approximately 1.06% of last year's total revenue.

Details: https://www.semimedia.cc/?p=11928   

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