Oct 16, 2018 10:31:44 AM
Oct 3, 2018 1:05:00 PM
Oct 3, 2018 9:15:17 AM
When utilized, power management ICs function by managing the power requirements within handheld devices, thus giving end-product the ability to become smarter and operate more efficiently. As a result, the demand for more power management ICs within the electronic component industry is constantly increasing.
As both consumption and the cost of energy rises globally, maximizing energy efficiency has become a popular topic. Several government policies are now in place to reduce energy consumption, emissions and costs. Power management ICs used in battery operated devices serve as a solution to help reduce energy consumption as they regulate and monitor the flow of power from in and out of the device.
Most portable devices, such as smartphones and tablets, depend on power management ICs to deliver long life expectancies. The development of IoT, smart cities, energy efficiency as well as the advanced technology in smartphones all contribute to the overall demand. As power management ICs continue to develop, they enhance and support the overall operating performance of devices. Globally, the demand for more efficient and longer lasting smartphones is rising. By 2021, 50% of world’s total amount of electronic devices will be smartphones.
With demand expected to exponentially rise, multiple reports reveal that the power management IC market is expected to grow within the electronic component industry. According to a report from Transparency Market Research, the power management IC market is forecast to have a compound annual growth rate (CAGR) of 4.6% from 2018 to 2026, resulting in US $56.48 billion revenue by the end of 2026. Market Research NewsWire also reported the market having a different CAGR of 6.4% resulting in US $61.33 billion revenue by year 2023.
Additionally, reported lead time ranges for power management IC products in 3Q18 vary by manufacturer. While Diodes Inc.’s lead times for multi-source analog / power integrated circuits is 14-16 weeks, ON Semiconductor and STMicroelectronics reveals that their lead times are 30+ weeks. The complete report reveals that each electronic component market’s lead times trends and current pricing trends listed are either in stable or increasing states.
Qualcomm, Texas Instruments, STMicroelectronics, Maxim, ON Semi, Fujitsu, Analog Devices and Linear Technology Corp. are major manufacturers who are dominating the power management IC market with items such as Linear Technology’s LT1616ES6, LT1613CS5 and LT1933ES6, Maxim’s MAX1763 and MAXM17503, and STMicroelectronics’ L6727 and L6739 displaying high demand.
As supply and demand become more critical to maintain healthy production and inventory levels, Advanced MP Technology continuously monitors components market trends to fulfill our customers’ needs from under to over-supply of electronic components. Advanced MP Technology is a world class leader in independent distribution with high quality standards and excellent customer service. Our customized robust Oracle ERP system allows our resourceful sales and purchasing teams to effectively mitigate electronic component supply issues globally.
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Oct 2, 2018 5:53:02 PM
For the global electronics industry, the impact from the tariffs between China and the U.S. is starting to grow. As a globalized industry, the spread of supply chains worldwide helped major OCMs, OEMs and EMS companies to divert production plants to take full advantage of regional benefits. When the trade war first began in July, the industry expected this to be “a short-term situation” and for customer behavior to experience “very little” change. However, as the situation escalates with increasing tariff invoices and no signs of relief, a trace of fear concerns regarding “where next” is spreading across the industry.
Among electronic components, passive components including capacitors, resistors, connectors and more are on the tariff lists from both the U.S. and China. Some of the impacted lines are 3M, Molex, TE Connectivity, Amphenol, AVS, TDK and Kemet. For example, when importing diodes into the U.S. with an HS code of 85414060 and manufactured in China, the importer is subjected to a 25% tariff. On the other hand, LED products with an HS code of 85414010 and manufactured in the U.S. will be subjected to a 25% tariff when importing in China. Although it is possible to source these products from their non-China or non-U.S. manufacturing sites based on the import destination, the increase in labor and lead times may create chaos to the supply chain, especially for highly allocated parts. While big companies may manage to absorb the increased costs, small-to-medium sized companies could experience challenges.
Going forward, with the ongoing server trade negotiation between the U.S., the Europe Union, Canada, Mexico and China, the electronics industry may react by:
It is important for technology manufacturers to have a trustworthy supply chain partner to mitigate significant challenges in today’s political and economic environment. With 40+ years of industry experience, insightful market knowledge, and a global network of qualified suppliers, Advanced MP Technology is well-positioned to help OEM and EMS companies succeed.
Contact your account manager today to discuss your customized supply chain solutions with Advanced MP Technology.