Graham Pitcher

Component prices set to ease, but not lead times

News

After more than a year of increases, the prices of discrete components are set to decline in the first quarter of 2011 as demand softens, according to the market researcher iSuppli.
Rick Pierson, an iSuppli senior analyst, said: "While such drops – amounting to less than 1% for all discretes – won't come close to offsetting the gradual increases since October 2009, the price reductions will give buyers some relief from demand outpacing supply."
Even if discrete prices begin to decline in Q1 as predicted, iSuppli says buyers may still have some challenges obtaining parts. 'Delivery lead times for these discretes will continue to extend well beyond normal parameters – by as much as 20 weeks or more in some cases' it claims.

* Bipolar power Prices will increase through the remainder of 2010, then level off for the first half of 2011. But lead times will continue to extend, with some suppliers quoting six months of longer. iSuppli expects this to decline gto 18weeks. * MOSFETs Pressure at the front and back ends of the supply chain is extending lead times and putting some parts on allocation. Pricing is expected to stabilise during the first half of 2011, but bottlenecks are expected in the market, despite production expansion efforts. * Rectifiers iSuppli says prices will fall back in Q1 2011, following the stabilisation of supply and demand. Lead times for rectifiers will continue to be unusually extended – more than 20 weeks in some cases – and this will remain an issue in 2011.
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http://www.isuppli.com