AVX: The company’s production plant located in El Salvador has re-open as of June 15th. Even with the re-opening, it will take weeks to get back up to normal production rates and with inventory levels at an all-time low across the board, lead times remain 26 weeks.
NXP/Freescale: Pressure sensor supply has always been unpredictable. Extended lead times are due to the low production capacity and the surge in demand from medical and industrial automation. Distributors are keeping low inventory due to the un-optimistic forecast of 3rd and 4th quarter demand. Current lead time has gone up to six months.
Infineon: Back in June 2019, Infineon announced an agreement to acquire Cypress with the intention of being the worlds #1 automotive chip manufacturer. In April of 2020, the acquisition was completed and steps have now been taken to transition production. The transition includes moving the final assembly and testing sites other Infineon locations, but it’s reported that current operations are only at 80% capacity and lead times have yet to improve.
ST Micro: ST Micro claimed its Italy factory would not be closed despite the coronavirus quarantine measures put in place by the Italian Government but lead time stretches have been observed for various product lines. The Italy factory is not only the main production locale for automotive grade parts, but also the wafer and die provider for other sites. If Italy reduces cross-border shipping activities, finished products from other factories still requiring wafer support will be affected.
Vishay: For passive products, the standard lead time for wire-wound inductors used to be 50+ weeks. They have now stretched to over 80+ weeks due to the Chinese government’s mandated suspension of production. Because of this, customers have started to approach alternative brands like Panasonic and Eaton. The production for active parts has not been as affected due to a lack of disruption in Israeli production and distributors having healthy inventory levels.
Vishay factories are also experiencing some level of significant manufacturing disruption in: France, Italy, Dominican Republic, Philippines, Malaysia and India.
Melexis: The temperature sensor, which Melexis is a manufacturer, is the key component in thermometers and health monitoring wearables. The company’s sensors are manufactured in a China plant, and because it was unsuccessful in moving production to its Germany plant to soften the shock, lead times are stretching to 40 weeks for some series, including MLX906XX.
Amphenol: Many customers have mentioned they are considering using Amphenol to substitute for Melexis, but are faced with the same situation. Amphenol informed its authorized distributors that allocation will be tighter than ever. Standard lead times are still shown as 12 weeks, but are likely to be delayed until August.
Samsung: As production for all Samsung products is affected by the coronavirus, increased demand for SODIMMS and UDIMMS is adding to the supply shock. With land, air and sea travel restrictions in the Philippines being extended, 40% of the company’s manufacturing is being affected.
The company’s production of MLCC is also being greatly impacted by the closure of Italy. We are seeing shipments being pushed back by 8 weeks. Because of this, customers are taking precautions by increasing their inventory for a minimum of 3 months worth of goods.
Intel: The company manufactures much of its server and PC processor product lines in Malaysia, which has been impacted by the country’s “restricted movement order” and is presumed to continue being impacted as the country’s travel ban has been extended until April 30.
Although Intel has released a statement on how the company will support its customers, it is uncertain to what extent production will be disrupted. Any sustained cessation of output would put tremendous strain on an already-burdened supply chain for Intel CPU – processors have been in a state of shortage for the better part of two years.
Lead times are extending and there appears to be constraints.
Panasonic: The supply of Panasonic Tantalum capacitors has slightly stabilized and we’re seeing improvement with 8-10 week lead times.
Epson: It is presumed that Epson’s factory in Malaysia will also continue its suspended operations until April 30. This has caused supply disruptions with its Crystal Resonator, Crystal Oscillator, Gyro Sensor and Real Time Clock product lines. Although the company has addressed shipping delays, it has yet to announce how long these delays will be.
ONSEMI: An official notice was sent to assure customers that its production operations in Malaysia and Philippines will remain operating in compliance with applicable government restrictions. The manufacturer is currently assessing production and distribution delays. There are rumors that production my be shifted from Malaysia to neighboring factories.
Molex: The company is working with both the Philippines and Malaysian governments to seek exemptions for electronics operations. Molex has sent an official notice assuring customers its America and Europe facilities will still be operational, but to expect they will not be operating in full capacity until further notice.
Cypress: It’s estimated that lead times will extend by 4 weeks for products shipping from its Philippines location. One of the major affected series will be PSoC series, as they are the only manufacturer producing it after acquiring it from Broadcom’s Wireless Internet of Things Business back in Y2016. For products with a country of origin in Malyasia, it seems distributors have secured buffer stock, so a lead time increase isn’t expected.
As a leading player in NOR flash technology, distributors are expected to see a surge in demand for NOR flash products, especially in medical applications as medical manufacturers are racking up productions on medical equipment for the COVID-19.
With the final regulatory approval for Infineon acquiring Cypress completed, we are also getting feedback from Cypress distributors and customers will expect experiencing some form of supply disruption due to this transition period.
Microchip Technology: The company faces major possible disruptions due to COVID-19 as municipalities order “shelter in place” causing many of their factories to have significantly reduced labor, as some face the threat of being shut down.
With Thailand restricting travel, the company is anticipating lead times to extend beyond 2 weeks for the SST Flash challenge.
On April 16, MCHP will also be changing the “no cancellation – no reschedule” window for standard products from 30 days, and extending it to 45 days. This shift is expected to last for the next few months to come.
Renesas / Intersil: According to Renesas, distributors who deal legacy parts, inventory levels are accumulating mainly because of the mismatch between supply and demand.
The Renesas production plant in Malaysia produces a large portion of their buck boost regulators & transmitters/receivers. Malaysia’s lockdown combined with the upside in demand of medical devices has caused allocation issues for a variety of these products. Sources expect that the issue will continue throughout Q3 depside production capacity slowly ramping up.
Texas Instruments: The company’s OPAxxxxx products are primarily produced in Malaysia as well as a few other product lines. While the company has not released an official notice, it is likely there will be lead time increases, especially with the extension of the “restricted movement order”.
ROHM: The company’s production capacity is still not fully occupied. As of now, the China Dalian factory, which produces optical power modules (OPM), is only at about 80%. Its China Tianjin Factory remains at about 30% production capacity.
For resistors, ROHM’s main production factories are in Thailand and Philippines. With the Philippines on lockdown production is likely to be impacted.
Analog Devices: The company announced that its factories in Malaysia, Philippines, Singapore, and California are facing supply disruptions caused by government regulations. These regulations have reduced factory operating levels and are limiting the movement of people, resulting in a limited capacity for both ADI’s internal test, external test and assembly partners.
Although in many cases, ADI’s finished goods inventory will be able to service immediate orders, new supply will be constrained for 3-5 weeks.
Broadcom: The company sent out a statement to customers addressing their supply chain issues caused by Malaysia, Thailand, Singapore and the Philippines (to name a critical subset) closing or severely restricting business operations. Another cause for these issues are that air and sea transport options have become unreliable, expensive and have increase delays.
They’ve advised that their customers and their contract manufacturers or distributors immediately place orders using a minimum of 26 weeks of lead time for few disruptions as possible. For business through the company’s affiliates, they will only respond to purchase orders in line with the updated minimum 26 week lead time.
Walsin: As with Samsung, we are also seeing that Walsin’s MLCC production affected by the closure of Italy. We are seeing shipments being pushed back by 8 weeks here as well. As mentioned before, customers are taking precautions by increasing their inventory for a minimum of 3 months worth of goods.
Finisar: Lead times are are getting worse as they are stretched further. Prices will increase due to component shortages caused by lockdowns.
Littelfuse: The company has released a statement that they are experiencing varying levels of disruptions because of shelter-in-place and state-of-emergency orders, including lead time stretches up to 4 weeks.
The manufacturing plant in the Philippines has recovered to almost 90% operational. However, they are struggling to meet deadlines for delayed supply due to being locked down longer than expected. Distributors foresee surface mount fuses (Nano 2) will be the next to see a shortage wave at the end of June.
The company’s Italy factory is operating at reduced levels, while its Philippines factory has been approved to operate at a reduced level to address critical customer requests despite the extended shutdown orders.
Murata: There are lead time stretches for the 0201 case size as it remains in tight allocation. Case size 0402 is also seeing more issues and suppliers have updated that this is getting tight as well.