Distributing Your Component Availability Needs in the Growing World of Obsolescence

Obsolete electronic components are an issue many companies think about very little – until they have to think about them a lot. In the world of electronic components, IHS Markit reports that the average life cycle of integrated circuits has decreased by about 30 percent over the past two decades. Organizations that partner with a reputable and reliable distributor of fully authorized electronic parts can draw from its vast resources, capture a real-time inventory assessment of their current capabilities and proactively plan for the future to make obsolescence issues obsolete.

Source: Distributing Your Component Availability Needs in the Growing World of Obsolescence | TTI, Inc.

A majority of electronics executives polled expect recession

Most electronics manufacturing industry executives see a recession as inevitable, according to electronics trade group IPC. That echoes sentiments by analysts who presented at the ECIA Executive Conference in late October.“ There’s a 60 to 70 percent chance of a U.S. recession,” said Cliff Waldman, CEO of New World Economics LLC, at the conference.  Recession could happen in two months or two years, he added. IPC’s October economic surveys found that 27 percent of industry executives believe the economy is already in a recession; 45 percent believe the economy will enter a recession in 2023; and 13 percent believe the economy will enter a recession in the fourth quarter of 2023. Industry executives expecting a recession are bracing for a longer one.

Source: A majority of electronics executives polled expect recession

US chip ban most punitive move yet against China

When Nancy Pelosi traveled to Taiwan in August, it made front-page news around the world and raised the specter of all-out war between the US and China. Early in October, the Biden administration made a far more decisive move against China – but it barely made the news in Australia. Biden decided to unequivocally sever China’s access to high-end computer chips, also known as semiconductors.

Source: US chip ban most punitive move yet against China – Asia Times

U.S. Chip Sanctions ‘Put Temporary Checkmate on China’ 

Based on the Cold War-era Wassenaar Arrangement, including more than 40 nations, the latest U.S. regulations ban exports of Nvidia and AMD GPUs destined for supercomputers in China, as well as sales of chipmaking tools and design software. Brett Simpson (Source: Arete Research) For now, the U.S. export rules have probably stymied the advancement of China’s chip industry, Brett Simpson, senior analyst at Arete Research, told EE Times.

Source: U.S. Chip Sanctions ‘Put Temporary Checkmate on China’ – EE Times

Is or Isn’t the U.S. in a Recession? 

As a matter of evolution, we are highly sensitized to signs of trouble over all other signals in our environment. And with the US 2nd quarter US GDP report we got what appears to be a flashing red light when the reported headline number declined for the second quarter in a row signaling, in classical terms, that we are in a recession. Or are we? Is contracting GDP a true harbinger of trouble these days?

Source: Is or Isn’t the U.S. in a Recession? | TTI, Inc.

1972: The Year Everything Changed 

“The Godfather” was playing in theaters everywhere, and “American Pie” was riding the FM airwaves. China was completely isolated from the West, and no one could imagine carrying a phone in their pocket. It was 1972, the year everything changed.

Source: 1972: The Year Everything Changed – EETimes

NA Electronic Component Sales Sentiment Plunges to Lowest Level Since COVID Collapse 

ATLANTA – ECIA has published the latest data from its Electronics Component Sales Trend survey (ECST). The indices from August 2022 and Q3 2022 reveal expectations that go from bad to worse as the industry moves through the 2nd half of 2022. The overall index average slumped from 94.7 in July to 86.0 in August. The one relatively bright spot is the expected stabilization of market sentiment in September as the outlook calls for a level of 88.4. Measurements below the benchmark level of 100 indicate negative sales growth.

Source: North America Electronic Component Sales Sentiment Plunges to Lowest Level Since COVID Collapse – More than Two Years

From Lean to Agile: Learning from the Electronic Supply Chain Veterans 

As many industries, including automotive and consumer electronics, move toward product interconnectivity—which increasingly requires a significant number of semiconductors—companies are being forced to rethink their supply chains to adapt to a constantly evolving market. Consumer-appliance OEMs, for example, are experts at making washing machines, refrigerators and ovens; however, integrating semiconductors for connectivity introduces an entirely new challenge. Those that are used to working closely with the semiconductor supply chain, such as in the fast-paced world of smartphones, understand the need to be agile. These companies are able to adjust quickly in the face of unexpected disruptions and often keep chip availability top of mind when designing products, which has given them a distinct advantage in the ongoing chip shortage. The good news for less agile companies is that there are still opportunities to learn and thrive in this sphere.

Source: From Lean to Agile: Learning from the Electronic Supply Chain Veterans | Source Today

5 Signs that the Supply Chain Crunch May Finally be Easing 

After more than two years of managing the impacts of the global pandemic and the supply chain disruptions that it has created, organizations across most industries are looking for signs of relief and hoping it will come sooner than later. And while order lead times remain extended for some products and the labor market hasn’t loosened up much, there are some signs that the supply chain crunch may be easing somewhat.

Source: 5 Signs that the Supply Chain Crunch May Finally be Easing | Source Today

There’s a World of Changes in Product and Packaging Regulations 

Have you ever wondered what the European Union (EU) means by “placed on the market” and how it differs from “make available on the market”? Ever wonder what the CE Mark is really all about? These questions and many more are answered in the Blue Guide, the EU’s bible on product rules. The 152-page Blue Guide is the guidance document to the New Legislative Framework (NLF). The Blue Guide says: Regulation (EC) No 765/2008 and Decision No 768/2008/EC brought together, in the New Legislative Framework (NLF), all the elements required for a comprehensive regulatory framework to operate effectively for the safety and compliance of industrial products with the requirements adopted to protect the various public interests and for the proper functioning of the single market.

Source: There’s a World of Changes in Product and Packaging Regulations | TTI, Inc.

IC Sales Turn Negative as Economy Weighs on Market

Never-before seen decline in June IC market driven by steep drop in memory pricing.

The IC market recorded its first-ever June sequential sales decline this year, based on data from WEMA, SIA, and WSTS dating back to 1976,  Typically, high single-digit or double-digit sales gains have been the pattern for June IC sales. Even in its previously weakest year (1985), June IC sales increased 1%.  Never, until this year, have June IC sales declined.

Source: IC Sales Turn Negative as Economy Weighs on Market

Chip sales to slow further on global recession concerns 

Chip sales are set to cool more than previously expected as the global economy struggles under the weight of rapid interest rate increases and rising geopolitical risks, fueling fears of a recession. World Semiconductor Trade Statistics (WSTS), a non-profit body that tracks shipments, lowered its market outlook to 13.9 percent growth this year from 16.3 percent. For next year, it sees chip sales rising just 4.6 percent, the weakest pace since 2019.

Source: Chip sales to slow further on global recession concerns – Taipei Times