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Lead Times and Shortages are Still Challenging Within the Manufacturing Industry due to COVID-19

July 14, 2020 By Serendipity Electronics

While we anxiously hope and expect that industries across the board will resume sooner than later, there are industries that are currently dealing with delayed lead times, and low inventory.
Here is a summary of different companies within the manufacturing industry, and the latest update on how they have been and continue to be affected by the pandemic.

Amphenol
Amphenol’s standard lead time of 12 weeks will most likely be pushed further as they struggle with allocation. This will discourage customers from changing manufacturers as they will continue to encounter the same issues with lead times.

Analog Devices
As many other manufacturers, AD announced supply interruptions from their locations in Malaysia, Philippines and Singapore. Operating capacity has also been reduced, which has caused delays in internal and external tests as well as other parts of the production line. Current inventory will fulfill current orders, however lead time for new product is estimated to be 3-5 weeks.

AVX
With a specialization in capacitors, varistors, connectors, and antennas specific to the transportation industry; the current lead time is 26 weeks and inventory remains low.

Broadcom
With its supply chain affected due to restrictions in Malaysia, Thailand, Singapore and the Philippines, in addition to unreliable air and sea transportation, Broadcom advised customers of a 26-week lead time.

Cypress
Cypress is another manufacturer with facilities in the Philippines, which may incur lead times of an additional four weeks. Products originating in Malaysia may not incur any additional lead time, as distributors have previously accounted for large supply stock.
Series that will be affected will include the PSoC series, while there is prediction for a high demand for NOR flash products due to their use in medical frontlines.

Epson
With a factory also in Malaysia, Epson’s operations were halted thru to April 30th. Current lead times have not been announced, while supply for Crystal Resonator, Crystal Oscillator, Gyro Sensor and Real Time Clock product lines have been affected.

Finisar
Prices are on the rise due to a shortage on parts, and lead times are increasing.

Infineon
The acquisition of Cypress was completed in April 2020, with the ambitious goal of becoming the manufacturing leader of automotive chips. Current operations are reported to be at 80%, which has caused a delay in final assembly, as well as testing sites.
A supply disruption is however expected to be seen, due to Cypress’ recent acquisition by Infineon.

Intel
With its CPU processors already incurring a lack of supply for about two years, Intel has assured their customers they would continue to offer needed support. However, with most of their servers and PC processors being manufactured in Malaysia, manufacturing will be impacted and lead times will most likely increase.

Littelfuse
Littlefuse announced a lead time of up to four weeks mostly due to delay in supplies cause by the extended lockdown in the Philippines. However, the manufacturing plant is operating at 90% capacity, but it has been approved to operate at lower levels. The factory in Italy is also operating at reduced capacity.

Melexis
Manufacturer of a temperature sensor, which is vastly used in the health industry, Melexis attempted to move production from their China plant to Germany. Their attempt was unsuccessful, and they are currently enduring a lead time of up to 40 weeks.

Microchip Technology
With significant reduced labor in their factories, causing production interruptions; some locations are facing possible permanent shut down. A lead time of at least two weeks due to Thailand’s travel restrictions is expected.

Molex
Molex announced they will not operate in full capacity and advised customers that the American and European locations will remain operational. They are pursuing possible exclusions to continue their operations in both Malaysia and the Philippines.

Murata
Some increased lead time for both the 0201 case size, as well as the 0402 case size have been seen.

NXP/Freescale
As the demand for pressure sensor increased due to COVID-19, and production was severely affected, current lead times are up to a whopping six months. Some distributors are not projecting a high demand of such sensors in the last half of 2020, which has resulted in a low on-hand inventory.

ONSEMI
Onsemi may possibly move production to other country’s factories, although they recently announced that production would not be affected in Malaysia nor Philippines. Production and distribution lead times delays have not been announced.

Panasonic
Current lead times are estimated 8-10 weeks which is an improvement, while the supply of Panasonic Tantalum capacitors have become stable.

Renesas / Intersil
Renesas reported increased inventory levels due to high production from their plant in Malaysia, all the while the country’s lockdown and medical demand have contributed to an allocation problem. The issue is expected to improve not sooner than the 4th quarter of 2020.

ROHM
Currently operating at 80% capacity from their China Dalian factory, and only at 30% capacity from their Tianjin factory; Rohm has also been affected by the lockdown in the Philippines, where one of their main factories is located. Production delays are to be expected.

Samsung
With Italy’s closure, MLCC’s production was affected. However, due to shipment delays of about 2 months, customers increased their inventory to about 3 months’ worth of supply. The Philippines travel restrictions have affected about 40% of Samsung’s manufacturing, while there has been an increase in demand for SODIMMS and UDIMMS.

St Micro
While this manufacturer did not close their factory in Italy due to the pandemic, cross-border shipping activities have affected the lead times for several of their products.

Texas Instruments
With products currently produced in Malaysia, it’s not unlikely that there will be issues in lead time. However, the company has not made any official statements.

Vishay
Vishay’s products from Israel have not been affected, and distributors having extensive inventory helped. However, factories in other countries such as France, Philippines and India to name a few, have had some manufacturing delays. Mostly affected were the passive products that were produced in China.

Pre-Covid these products already incurred a long lead time of 50 weeks, but currently have a long lead time over 80 weeks. As the Chinese government suspended production, customers have turned to substitute brands such as Panasonic.

Walsin
Walsin was affected by Italy’s closure and had shipments delay by about two weeks. Customers however, also stocked up at least a 3-month supply

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