Dear customers and vendors, welcome to the Market Insights-Newsletter from Quiksol that delivers timely and relevant market intelligence report to the electronics supply chain industry. We hope you find this issue of Market Insights valuable, and we welcome your feedback at Quiksol@quiksol.com.cn
TI shortage is still mainly in automotive chips. Factory customer has enough inventory for this year. They are planning demand in next quarter now, and there are no plan to take in ex-stock now. Customers prefer to focus on cost saving and PPV demand. However, on the supply side, due to the high level stock in franchise and open market, suppliers prefer to reduce their inventory level via spot buy and does not prefer to start PPV order now. In the future, when spot buy changes to PPV buy, it will be a big challenge for everyone.
STM demand is still relatively sluggish this month, Customer’s acceptance level on the high priced items has also dropped. The price of MCUs of 01 and 03 series has been relatively stable, and automotive MCUs and F4 series MCUs are still in a relatively short state, such as STM32F429ZET6, SPC560B50L3B4E0X and other models.
At present, although the delivery time is still not good, customers have reduced the demand for urgent use, and more and more customers want to know the order price. Our company has long-term needs for each series, if you can provide stable support at a good price, welcome to negotiate.
Qualcomm demand is still very weak, customers are still in the wait and see attitude. CSR Bluetooth chip BC417143B-GIRN-E4 has more enquiries this month but stocks are difficult to find. Netcom materials such as AR8031-AL1A/ QCA7005-AL33 have some spot release this month, but the price is still very high, the end customer can not bear the price difference, continue to wait and see. Consumer products’ supply are saturated hence making up the majority of current spot buy deal. This month's popular out-of-stock models AR8031-AL1B, BC417143B-GIQN-E4, etc., the price is still high and the current market has less stock to support. At present, there are also a lot of hot materials for Excess resale in the factory, but the demand is bleak, and the terminal has no intention to transfer goods at a high price, waiting for the market to return to normal level.
This month is the final month of the year, with Christmas and New Year holiday, we see slight slow down in demand from the factory. On the supply side, automotive and industrial products are still partially lacking and cannot be supplied in a timely manner in the short term. There is news that NXP will usher in a new round of price increases, with a range of about 15%. FS series demand is relatively stable, such as FS32K142**, FS32K144** client needs to have a good price to buy stock,The S series has some deliveries, but it is still in short supply, and it cannot be solved in the short term. The client has continuous demand, but the factory shows no sign of improvement. The delivery time is not so urgent, part of it can wait for a short time. For S912ZVC our company has long-term demand, if there is an advantage of channel supply, you can contact our company; The protagonist MK series that is in short supply this year; such as: MK64FN1M**; It has been short supply for a whole year, the price is still at a high level, a small number of items have arrived, prices fluctuate back and forth; Some shortages such as I.MX and MC series shows no sign of improvements. Other products are relatively stable overall; The delivery time of some conventional materials has been advanced from the original 52WKS to about 35-40WKS; Due to the new round of price increases, the cost will be much higher, for customers with production needs, there are materials in stock and the price is suitable, it is recommended to pull the goods first.
Compare with the previous 3 months, Broadcom demand is still too weak , the original factory's large number of arrivals causes both end customers and distributors under huge pressure as the current inventory shoots to its peak. At present, most of the conventional material prices have returned to its normal order price, a small number of non-mainstream material prices are still high, mainly concentrated in a few industrial products. Such as BCM53286, BCM56026, etc. In January 2023, Broadcom will face a new round of general survey 5% , In the case of oversupply, it will be another blow to the end customer, but this is also a small opportunity for traders, if they want to sell goods in the short term and can also wait for the general survey before making a decision.
Demand for December is dropping obviously compare to November, mainly shortages from automotive or hand to find series such as R5Sxx/R7Sxx/R7F70xx/HDxx ets. There is big improvement on supply since previous lead time is more than 52wks,nowadays the lead time has been shortened to 36wks for ISLxx series, it's 36~42wks for clock items and 22~36wks lead time for mcu starting with R5Fxx/R7Fxx; however, there is still tight supply for mcu starting with M3026xx/M3062xx and lead time is 52wks or more.At the last, Renesas will increase price from Jan 1st 2023 which will affect both new and incoming orders, most of the items will be increased around 10%~15%.
Realtek's demand has decreased in December. The demand for audio decoding decreased significantly this month. The demand for Router and Switch also decreased this month. The models out of stock this month are ALC897-VA2-CG, ALC887-VD2-CG, RTL8881AM-VE4-CG, RTL8211DS-VB-CG, RTL8111FPH-CG, RTL8100CL-LF, ALC5642-VF-CG, ALC5642-VF-CG, RTL8192ER-CG etc. Customer's demand were mainly on assembling parts this month.
In addition, if you are in need of these, RTL8211FS-CG, RTL8304MB-CG, RTL8309M-CG, RTL8363NB-VB-CG, RTL8211EG-VB-CG, QUIKSOL has better spot-buy resources, welcome to exchange.
In December, the overall demand for Microchip was very weak, and have many stock in market, but the factory demand plummeted. Prices also fell sharply, and there was a clear sense that there was considerable excess in the factory. For example, KSZ9031RNXIC dropped from 30-40usd to 10usd at the beginning of the month. ATMEGA88PA-AU from 2usd to around 0.8usd. Customer target prices are also getting lower. Obviously, I feel that the factory customers are starting to work on PPV in December. They can accept the delivery time more than the spot demand. And have spot demand, also wait and see the arrival situation after the Spring Festival, then decide whether to place an order. Our company has long-term demand of Microchip, welcome to negotiate.
At present, the overall demand for ADI and their acquired brands is still weak, especially the price of general series is seriously reduced, the spot market has enough stock, and now some factory customers are considering PPV plans for next year. Until now, ADI's current demand is mainly some advanced materials used in medical, industrial control and other fields, which are not common parts. Linear's current demand are mostly on the old model and small quantity model, which is less in stock and difficult to find. Maxim's current needs are focused on battery and industrial control materials, with less demand for common parts.
Demand in December at the end of the year is the weakest month in this quarter. On the other hand, it is related to the customer's year-end spot inventory limit, and on the other hand, it is related to the current market supply and demand. Recently, the overall supply of Infineon has increased, but TLE series of power devices are still in short supply, and some high-voltage Mos customers are still looking for them. On the client side, due to the recent epidemic situation and the impact of holidays at home and abroad, the demand has slowed down, resulting in a bleak market in this month and early next year. In the long term, the major car manufacturers will continue to expand production next year, and the delivery date of auto related materials will still be long. It is expected that the auto materials market will remain hot next year. If you have superior parts in stock, you can contact us at any time.
At the same time, our company also has inventory supply, such as IRF7341TRRPBF, BTS5045-2EKA. If you need, please contact our salesman.
As we move into this year's last month, the demand of Vishay still keep growing. Compare to the sold cost of last year, this year's gross margin up to 31.3%. The shortage most focus on MOSFETs and passive components. Due to the material shortage and COVID-19 situation, the MRF reference lead time of most Vishay's products are still unstable and long. Meanwhile, here is the newest product's line on Vishay is coming up: VS series. From the new official website reference lead time only about 20weeks.
Battery management system (BMS) area is still developing rapidly, the demand for BMIC is stable, and the capacitors and resistors of Automotive parts also maintains strong demand, mainly focusing on high-end products with high tolerance value and wide temperature tolerance. Vishay, TAIYO, Murata, TDK are still the first choice. KOA is also growing in popularity due to its relatively good lead time. The COVID-19 related medical supporting equipment, oximeter and other civil medical devices have slightly driven the market of consumer-grade (part of industrial grade) relays and barriers, but the overall demand is still not optimistic. The hidden dangers in development mainly come from the continuous cut off of many intelligent terminal orders, which is still unknown in the next month and the first half of next year. Demand for high-end products such as servo motors and precision instruments, which are similar to car specifications, was strong, but the overall market remain sluggish in December.
The demand for Lattice has increased drastically in year 2022. In view of unstable PLD supply, clients are switching from Intel & Xilinx to Lattice in December. Although Inventories was increased by about 39%, the drastic increased in demand caused lead time to stretch to 99 weeks causing allocation. Supply has not improved, and parts are still under allocation. Only limited stock is available for SII series parts. Manufactures are now controlling distributor’s inventory tightly. However, as suppliers push to clear out inventory, prices have fallen slightly.
There is still not much improvement on lead time; between 50-60 weeks. LCMXO3 and LC40 are very short with lead time around 45 weeks. In addition, Lattice was launching its newest FPGA platform -- Lattice Avant on 5th December. The Avant platform will double Lattice’s addressable market, creating new greenfield revenue opportunities.
XILINX's price increase notification letter mentions: XILINX price increase of 8% from January 9, 2023; Among them, Spartan 6 price increase of 25%, From the perspective of client demand, the demand for 6 series is relatively large, the original factory's delivery time of this series has not been greatly improved, the current situation is maintained until the end of 23, the price of some materials is still high, and the expectation of the supply side of this series is relatively high, and it is necessary to communicate more according to the actual situation of the customer project to achieve unity; 7 series XC7A/7S/7Z, etc., there are more arrivals, the customer gap is decreasing, there are a small number of product prices inverted, and the actual demand can be negotiated, 3 series such as XC3S** demand is very little, XCF is mostly EOL materials, occasionally there will be demand. XCAU, XCKU, these items are more difficult to get stock. Continue to monitor XILINX supply and price action．
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