Archive for Components Distributor
Fuji Electric and Freescale Semiconductor to Create Alliance
Posted by: | CommentsThe two companies announced that they will be joining efforts on insulated-gate bipolar transistors (IGBT) for the automotive industry, namely hybrid and electric vehicles (EV). Freecsale has stated that IGBTs are a critical component in powertrain controls and has become a complete EV industry provider. They will now be a major rival to Infineon, offering all major electronic components to the electric vehicle industry: power IGBTs, microcontrollers, battery monitoring ICs, analog gate drivers, and software for motor control development.
U.S. Losing Its Grip on the LTE Market
Posted by: | CommentsNorth America was monopolizing 93 percent of the global long term evolution (LTE) wireless market in 2009. Its share was down to almost 50 percent in 2010, and by the end of 2011 and beyond, might be down to as low as 20 percent. That’s because other countries, especially Europe, are looking to integrate 4G technologies into their current air interfaces. The bulk of this transition should occur over the next three years and semiconductor suppliers will have to plan to meet the needs of carriers transmitting 2.5G, 3.5G, and 4G technologies simultaneously. This will also lead into the monitoring of data that some service providers already institute. Their goal is to upgrade their unlimited, unmonitored ‘dumb pipes’ to ‘metered dumb pipes’, ultimately employing ‘smart pipes’ in all of their networks. This will let service providers to continually colonize their data packages into price tiers according to their usage. However, carriers will have to improve their systems to prioritize data traffic, guarantee their service, and offer exemptions to their data thresholds.
As most are aware, there is a large concentration of the electronic component market in the Asian geographic region. With the recent calamity only dealing the biggest physical blow to the Japanese infrastructure, careful planning needs to be implemented to circumnavigate what a more widespread disaster would do to the electronic component industry. Taiwan, South Korea, and some territories of China have the highest percentages of production and are suppliers to the rest of the world. South Korea claims 60 percent of DRAM, 50 percent of NAND flash, and nearly 30 percent of display driver semiconductors. Taiwan yields a quarter of all semiconductors and over a third of display drivers. China has the ability to make or break the market as they are the pedestal for the world’s majority of original design manufacturing. They produce electronic equipment for electronic brands all over the world. In addition, they dominate the transportable market with 80 percent of laptops and 25 percent of cell phones produced in just two regions.
Yageo to Move Up in Ranks; Seeks To Be a Contender
Posted by: | CommentsKohlberg Kravis Roberts & Co LP (KKR) is teaming up with the founder and chairman of Yageo, Pierre Chen, to buy the components maker. KKR has been partners with Yageo since 2007 and plan to keep Mr. Chen as the CEO of the new company. The $1.6 billion deal sent shares to the ceiling permissible in a day, up almost 7 percent to $15.05 a share. The company, which hails from Taiwan, makes electronic components such as resistors and capacitors. Mr. Chen is shifting the company’s focus west, vying to be a global leader in the long term. They have been assembling a company for the last two years that can be formidable competition to Japan, and are striking at a time when Japan’s electronic component markets are particularly vulnerable.
Power Management Semiconductors Gaining Experiencing Decreased Gains
Posted by: | CommentsThe global power management semiconductor market is projected to increase by a double digit margin this year, 13 to 14 percent. That’s down from the over 41 percent we experienced in 2010. However, that’s normal given it was a strong recovery year following a recession. Expansion in this sector is expected due to the demand for more energy efficient battery powered consumer goods. In addition, we are truly on the brink of the alternative energy era. Wind, solar, and a revamped auto industry will only add to the increasing revenue. This year has also seen a shift toward greater integration in power ICs. Some believe that this factor alone will be enough to change the market dynamics and force the restructuring of large companies in order to stay competitive.
Demand for Semiconductors to Rise in 2011
Posted by: | CommentsThe global power management semiconductor market is projected to increase by a double digit margin this year; 13 to 14 percent. That’s down from the over 41 percent we experienced in 2010. However, that’s normal given it was a strong recovery year following a recession.
Expansion in this sector is expected due to the demand for more energy efficient battery powered consumer goods. In addition, we are truly on the brink of the alternative energy era. Wind, solar, and a revamped auto industry will only add to the increasing revenue. This year has also seen a shift toward greater integration in power ICs. Some believe that this factor alone will be enough to change the market dynamics and force the restructuring of large companies in order to stay competitive.
On the Hot Seat – Component Shortage Buyers
Posted by: | CommentsCan you feel it coming on? Remember the last time we rebounded from a down-turn in the electronics industry. All of a sudden, companies around the world had desperate needs for all sorts of components and nowhere to turn. Well, with OEM Executives’ ongoing caution of the recovery and still unsure of its customers’ demands, material orders appear to be below the aggregate demand needed. With recent capacity reduction implemented in key component areas limiting the ability of some suppliers to respond to the modest increase in demand, any incremental increase in demand may result in significant supply issues.
And, as reported in CCS, some component delivery times will greatly exceed previous levels. The components expected to be most impacted are: CMOS Logic, FLASH-Memories, Interface ICs, Suppressor Diodes, Al Electrolytic Capacitors-SMD, Ceramic Capacitors-SMD, Film Capacitors-EMI suppressed, Resistors-NLR, Tantalum Capacitors-wired, Film Capacitors-wired, and Switches- (Toggle / Slide)
We all know that being an electronic component buyer is difficult enough. But, when it comes down to solving shortage issues, it appears as if the world just became a tougher place and looks to remain that way for quite some time. While component shortages represent a very small portion of a company’s overall component budget, it tends to consume a significantly large portion of a buyer’s time. According to COMPONENTSResearch, solving shortage needs may take up to 40% of a buyer’s time.
With the present and looming shortages that many are surely going to face in the near future, now is the time to establish relationships with companies that have both the history and the capability of solving your shortage issues. While you may not need their services today, when the time comes that you must have those missing components on your dock immediately, it’s great to know that you have prepared for that eventuality.
Move Over iPhone, The Cliq is Here
Posted by: | CommentsMove over Iphone, Motorola has done it again and postured well to gain the kids’ attention this holiday season. Have you seen Motorola’s new cell phone device? We haven’t seen anything this cool out of them since the ever so popular Razr, which basically redefined and set a whole standard for the market a few years back. The new device is called “the Cliq’ and hosts a number of power features such as a 5megapixel camera ( iphone is only 3 mega pixels), social networking software allowing ease of use of facebook and email accounts, as well showing friends “status’ on the home screen.
The Cliq, which Motorola unveiled in September, uses Google Inc’s “Android” software – modern, well written operating software that allows many people to do many different things with their phones. Motorola plans to unveil a second Android phone sometime in October. It will also be available for the holidays.
There are thousands of apps already available for Android software. The phone offers a host of distinctive features that truly set it apart from the IPhone and Blackberry.
Jim Kelleher, an analyst at Argus Research, says “ the Cliq may be Motorola’s best stab at the smart phone market thus far. I think for Motorola to retain its tech edge and reputation for engineering, it really has to hit a home run — not necessary with this particular phone, but with its phones in the coming year, including this one.”
Outside the U.S., the Cliq will be known as the Dext. It will be available through wireless carrier Orange in the U.K. and France, Telefonica in Spain and America Movil in South America.
Good Job Motorola, we would expect nothing less from such a superior organization that defines todays technology trends in PDA and cellular devices.
8 Things You Need To Know Before Doing Any Business With Any Distributor
Posted by: | CommentsIn the perfect world, you would always be able to buy direct from manufacturers. But in the real world, there are times you need to do business with distributors, rep-firms, and independents. Before you put your trust – and your reputation – into the hands of any distributor, take the time to ask yourself these eight questions basic questions.
1. Is the company ISO 9001:2000 and AS9120 certified. A lot of brokers will boast that they are ISO certified but, in today’s market, basic ISO is not stringent enough to screen for counterfeit parts. And, before buying anything from the independent market, it’s important to make sure that your supplier’s quality protocol is Military/Aerospace grade, so you know you’re getting authentic, perfect material every time, without exception.
2. Does the supplier have a solid facility with a ‘bricks and mortar’ warehouse, an entire department devoted to shipping and receiving, and the staff to screen for quality assurance. Many “brokers” are just one-man shows who work out of their garage and ship components from the nearest FedEx at Kinko’s shop. The risks of doing business with an outfit like that are obvious. A quick check of the address on Google Earth will show you whether the location is an actual warehouse or just a suburban home.
3. Do they field an experienced team? Again, that means more than one person wearing all the hats. But it also means that you’re working with experienced veterans who know what they have, where to get what you need, and how to get it fast. Any competent distributor should have multiple purchasing agents screening through the OEM and CM excess inventories of the world. That way, when faced with a big shortage, you’ll know your supplier has many minds leveraging their collective knowledge and experience to meet your needs.
4. Does the broker have a bulletproof quality screening process? You can screen the broker, but it’s the broker’s job to screen their suppliers and all the components they get on your behalf. They need to make sure their supply stream is completely traceable and without compromise from unqualified sources, so yours will be too. Choose a distributor that is ahead of the curve in Quality Control. The counterfeit market is very savvy these days, and many ISO certified distys do not have the testing in place to discern what is authentic and what is not.
5. How many accounts does your sales representative handle? You don’t want to deal with someone who is spread so thin that they can’t give you the attention you deserve. You want someone who is always available and able to help in any situation. In fact a good sales rep at your distributor of choice– should be almost like having a virtual assistant. You want someone with experience, strong work ethic and that cares about keeping you on their client list for many years.
6. What kind of engineering support does the company offer? Procurement effort can be confusing with upscreening, exact crosses, drop in replacements, programming, erasing, and testing. A distributor with a good engineering team knows what will fit your needs and what will cause component system failure and weed them out so you won’t waste your time and your company’s resources sorting through options that are not viable.
7. Get references. Any company that meets all of the above criteria and will be a true extension of your organization should be able to provide multiple references from Fortune 500 companies proving their track record.
8. Make sure your distributor has a web based forum where you can submit RFQ’s and get a confirmed quote same day, access unlimited data sheets, and track your shipments. Having to call into a phone system every time you need to expedite a request can be tedious and time consuming. Make sure your distributor can handle all of your requests electronically in addition to giving you the hands on service that you expect. Click here to submit your RFQ.
Big Changes coming to EMS Industry
Posted by: | CommentsAs the market rebounds from this historic economic downturn, expect to see some major changes in the EMS industry as companies and their shareholders try to recoup serious losses and position themselves for the future.
Look for smaller companies that focus on narrow niche specialties like medical, industrial or aerospace. By specializing, they can concentrate all their time and resources more efficiently, keeping margins down and profits up. Larger EMS providers, which dominated the market in the past, will be left to fight over the less specialized consumer, computer and communications business. Those areas make up a large core of the market, but also have lower margins.
Some larger OEMs may turn to insourcing more of their manufacturing, taking a page out of playbooks that have been very successful for both Nokia and Intel. Keeping more manufacturing in-house puts the OEM in control and reduces the costs and headaches that can come from dealing with an EMS provider.
Finally, expect the explosive growth of Original Design Manufacturers to slow as OEMs respond to concerns over design innovation and product differentiation – the driving factor in many industries, especially consumer electronics. Outsourcing the design of specific components helped cut costs. Outsourcing the design of entire products has made some OEM’s fear they are losing their competitive edge. Now more of them are talking about recapturing control of conceptualization and master design from their ODMs.
Experts predict the next five to ten years will bring big changes to the EMS industry – specialization, insourcing, and a return to in-house product design. Will you be ready?
