Market updates : Severe allocation and material shortage in front of us
Early 2021 may be challenging in our industry, for some multiple causes explained in details below.
We want our customers to understand all the intakes and take smart actions to avoid shortage.
Alantys provides benchmarking solutions and gets access to inventories worldwide, which is definitely an asset nowadays.
First, the raw materials shortage is becoming a bigger concern each day now and pressure is already on the market: increased demand, static capacity, and industrial failures have come together to cause longer leadtimes, less availability and puts price presure for key raw materials in our industry, and among all the copper foil that starts raising as a matter of fact.
Demand for such is increasing from PCB and battery production for e-mobility, leading to an upward price pressure for copper foils as post lockdown pent-up demand starts to exceed capacity…
Wafer shortage, consequence of the Trade War
This one is definitely the most breaking news in the semiconductor market, and it will affect all makers on the medium term : on top of the increasing demand, SMIC and other non american foundries are « blacklisted » by the american semiconductor industry.
On top of it, demand in the foundry market has remained strong in Q4 2020, as production capacities across the industry remain fully loaded, with the tight supply of wafer capacities leading to a price hike in foundry services, and subsequently driving up total quarterly industry revenue, according to TrendForce.
These elements mainly explain why TI, NXP, STM, Microchip and some other makers are facing shortage of wafers. TSMC announced to all partners that the shortage will be faced and they can’t fullfill the backlog on time – ask your sales representative for extensive information, or click below…
Weak transportation capabilities worldwide
Covid and its consequences still impacts the supply chain : only a low number of planes are flying, and the capabilities of the cargos are fully booked.
Explosion of the pricing of the transportation, obviously leads to delays in the chain, and price raises in end products for the same reasons. This factor is not helping the recovery for smooth leadtimes.
Cost & Inventory Benchmarking solutions with Alantys
The recent changes in TI distribution network is a game changer for many of us. Our network is ready, and stable to support your supply chain with sustainable pricing and logistics. Alantys is a good benchmarking option for your leadtime buy.
Q1 & Q2 will be challenging in terms of stock taking for MCUs and other product range especially > we carry inventory and our network is able to give you some availability where your local vendors may not. Smart to spare your needs to different vendors.
Strong impact to come in terms of leadtimes. Q1 will be hard and the manufacturer is asking the market to log as much business as possible to serve better. You can count on us to help you with non stopping your supply chain as we carry large inventory batches & get connexions, with broken cost support.
Focus on our partners for your new designs
Our engineering team is ready to support you with you new designs and leverages cost down and brings you the latest technology : Passive, Electromechanics, Connectors, Display solutions…
About us : We Are Distribution
Alantys Technology is an hybrid distributor serving OEMs & EMS since 20 years. Our strenght is based on our global presence (12 locations worldwide) and our ability to bring our customers full pricing & logistics support for their MCU, Memory, Connectivity and many more products