Chip Prices: No Relief in Sight

Chip supplies are loosening up, according to analysts, which in normal times would also ease pricing. But the electronics supply chain is still far from normal.

Prices continue to increase in certain sectors of the semiconductor market. Intel is the latest chip maker to announce a price hike – some estimates are as high as 20 percent. More than a half dozen major chip suppliers have increased prices within the past year.

Microprocessor supplies will remain under pressure for some time, according to industry sources. “There’s such a broad range of component classes that any given class may be in over supply or under supply,” said Paul Romano, COO for global distributor Fusion Worldwide. “The market is still in a significant state of imbalance. There are still supply issues in the automotive, industrial and automation sectors.”

Source: Chip Prices: No Relief in Sight

How to spot counterfeit electronic components

Counterfeits electronic components are Electronic components that are misleading as to the origin or quality relating to the parts. It is possible to counterfeit a certain electronic component and potentially infringe one’s trademark license rights. 

Counterfeit parts often have inferior specifications and quality. They may be a hazard in a critical system such as an aircraft navigation and life support equipment or space vehicle. The sale in consumer markets of electronic components making it easier for counterfeiters to integrate inferior and counterfeit goods into the market. 

Source: How to spot counterfeit electronic components | Latest Articles, Top Articles News

Rochester Electronics Finalizes Purchase of Hentec/RPS Odyssey 1325 Lead Tinning System

Odyssey 1325 provides high reliability BGA alloy exchange and component re-finishing capabilities.

Hentec Industries/RPS Automation is pleased to announce that Rochester Electronics has finalized the purchase of a Hentec/RPS Odyssey 1325 robotic hot solder dip component lead tinning machine. The Odyssey 1325 is a MIL spec complaint high-volume, high-mix component lead tinning machine equipped with auto load/unload functionality and is capable of processing dual solder alloys. Designed to tin component leads for re- conditioning, gold removal and re-tinning applications, including high reliability and military applications including DIP, SIP, QFP, BGA, axial and radial components as well as BGA de-balling. The Odyssey 1325 complies with all applicable GEIA-STD-006, MIL-PRF-38535, MIL-PRF- 38524E and ANSI-J-STD-002 standards.

Source: Rochester Electronics Finalizes Purchase of Hentec/RPS Odyssey 1325 Lead Tinning System – Electronics Manufacturing News

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

Global Semiconductor Sales Increase 13.3% in Q2 2022 Compared to Q2 2021

The Semiconductor Industry Association (SIA) announced worldwide sales of semiconductors totaled $152.5 billion during the second quarter of 2022, an increase of 13.3% over the second quarter of 2021 and 0.5% more than the first quarter of 2022. Global sales for the month of June 2022 were $50.8 billion, a decrease of 1.9% compared to the previous month. Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.

Source: Global Semiconductor Sales Increase 13.3% in Q2 2022 Compared to Q2 2021

Micron to Invest $40B in U.S. with Passage of CHIPS Act

Micron, the world’s third–largest memory chipmaker, said today it plans to invest $40 billion in expansion in the United States with the passage of the U.S. CHIPS and Science Act.

“CHIPS” stands for “Creating Helpful Incentives to Produce Semiconductors,” but the act goes beyond computer components.

U.S. President Joe Biden is expected to sign the act today, which will provide about $52 billion in subsidies and research grants to semiconductor companies that invest in the nation and limit their expansion in China.

Source: Micron to Invest $40B in U.S. with Passage of CHIPS Act

Should chipmakers be preparing for a downturn?

Semiconductor vendors, chip equipment makers and their OEM and EMS provider customers were still trying to make sense of a crippling supply chain crisis when an old nemesis suddenly showed up at the tail end of the second quarter. Inventories are rising again and quicker than expected raising the specter of another one of the semiconductor market’s erratic boom and bust cycles. 

Source: Should chipmakers be preparing for a downturn?

Why the Government Is Boosting Computer Chip Efforts in the U.S.

Semiconductors—the digital machinery running everything from our smartphones and computers to cars and refrigerators—are a vital linchpin to the economy. But only 10% are manufactured in the U.S., while the majority of are produced in Taiwan, South Korea, and China. On August 9, President Joe Biden signed the CHIPS and Science Act, a bipartisan bill to provide $280 billion to support both manufacturing and innovation in semiconductors, among other scientific efforts. CHIPS stands for Creating Helpful Incentives to Produce Semiconductors.

Source: Why the Government Is Boosting Computer Chip Efforts in the U.S. | Tufts Now

SSDI offers high current density schottky for A&D

La Mirada, California – Aerospace engineers continue to turn to SSDI’s SED20HE100 Schottky for new, high reliability designs in military aircraft, launch vehicles, rovers, and satellites. This 20 A, 100 V device is available in the SEDPACK 1 package, which utilizes a direct bond connection to the die instead of using wire bonds. This leads to a rugged device with enhanced current carrying capabilities.

Source: News 2022-07-26: SED20HE100

American Chip Manufacturing Gets a $52 Billion Infusion

The CHIPS Act of 2022 includes about $52 billion in funding for U.S. companies that produce, design and research computer chips.

Source: American Chip Manufacturing Gets a $52 Billion Infusion | Source Today

TrendForce: DRAM Prices to Drop by 10%

According to the latest TrendForce research, despite the rapid weakening of overall consumer demand in 1H22, DRAM manufacturers previously presented a tough stance on price negotiations and gave little ground, steadily conveying inventory pressure from buyers to sellers. Facing uncertain peak-season demand in 2H22, some DRAM suppliers have begun effectively expressing clear intentions to cut prices, especially in the server field, where demand is relatively stable, in order to reduce inventory pressure. This situation will cause 3Q22 DRAM pricing to drop from the previous 3~8 percent to nearly 10 percent QoQ. If a price war is incited due to companies competing for sales, the drop in prices may exceed 10 percent.

Source: TrendForce: DRAM Prices to Drop by 10% – EPS News

U.S. chip industry split over CHIPS act benefits to Intel

Several U.S. semiconductor firms are deliberating whether to oppose a package of chip industry subsidies if the final language of the legislation awaiting a vote in the Senate disproportionately benefits manufacturers like Intel, sources familiar with the matter told Reuters. Senate Majority Leader Chuck Schumer has told lawmakers that a vote could come as early as Tuesday on a slimmed-down set of bills to bolster the U.S. computer chip industry, after Democratic lawmakers cleaved them from a larger, more contentious bill.

Source: U.S. chip industry split over CHIPS act benefits to Intel