5.18.2023

Supplyframe is the leading provider of Design-Source-Intelligence for the global electronics value chain.

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Introducing IQ Insider, the weekly analysis you need to achieve better sourcing outcomes. IQ Insider is powered by Commodity IQ, the leading source for predictive insights and prescriptive actions for commodity and supply chain experts worldwide. 

Make SiC a Priority in Your Supply Chain

The race to secure sufficient supplies of SiC-based devices for EV designs in automotive, and across other industries, has spurred major acquisitions, galvanized sweeping agreements, and unleashed massive sales growth. Find out more in a new article.

Push Back on Tantalum Capacitor Price Increases

Thus far in 2023, small case size tantalum capacitor global sourcing activity is down 22% amid weak consumer electronics demand. Push back on supplier and EMS pricing and negotiate parts with high inventory levels.

Monitor Rising FPGA Lead Times

Nearly 60% of at-volume FPGA part numbers were quoted at more than 52-week lead times in Q2 as a result of above average automotive infotainment and display application demand.

Re-Quote Analog Signal ICs Now

Pricing has been falling since November, with channel inventories ballooning 139% year-on-year. Q1 lead times on average fell sequentially by 20% but remain at over two times the Commodity IQ Lead Time Index baseline. 

Mind The Labor Wage Gap

Mainland Chinese manufacturing wages are up 6.6% in 2023, averaging 43.26 CNY per hour (~6.29 USD), about 30% higher than the average in Mexico and close to double that of the average in India. With Vietnam’s extremely low unemployment rate and its labor force participation rate at nearly 70%, manufacturing worker shortages are inevitable in 2023.

Take Advantage of Stability for Sensors

Year-on-year sensor lead times into Q2 further normalized, except for automotive devices. While sensor sourcing actions are forecast to rebound quarter-over-quarter in Q2 by a healthy 7.5% – compared to 2022, Q2 demand will be off by 14%.

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