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Advanced MP Technology

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The Rising Demand of Power Management ICs within the Electronic Component Industry

Posted by Advanced MP Technology

Oct 3, 2018 9:15:17 AM

 

 

The power management integrated circuit market is rapidly expanding due to the continual advancement in technology and large interests in energy efficiency. This IC type is quickly developing and supporting devices that are following the trend of becoming smaller and smarter. These devices hold various types of power management ICs which include, but is not limited to, voltage regulators, integrated ASSP power management ICs, battery management ICs, switching controllers, power factor corrections and gate drivers. While voltage regulators are the most commonly used electronic component, all contribute to the power management systems found in most end-products.

 

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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Trade War 3.0: The Foreseeable Impact on the Electronics Industry

Posted by Advanced MP Technology

Oct 2, 2018 5:53:02 PM

 

 

On September 24th, the U.S. administration imposed 10% tariffs on US $200 billion worth of Chinese imports. Combined with the first 2 rounds of additional tariffs imposed on July 6th and August 23rd respectively, the U.S has imposed new tariffs on a total of US $250 billion worth of imported goods from China.  To retaliate, The Chinese State Council’s commission on tariffs and customs issued tariffs on US $7.6 billion of imported goods from the U.S. Products impacted by the tariff war range from commodities such as soybeans to consumer products such as LED lights and toys.

 

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.

 

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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:

  • Decreasing in investment and electronic manufacturing
    • The uncertainty regarding tariffs and trade regulations may result in hesitation to proceed with new investments and commitments by companies. If the trade war becomes a normalized practice between China and the U.S., companies may be forced to pick a new market segment to survive or they may be forced to set up alternate supply chains and production lines for each market to mitigate the tariff impacts. Companies will need to be careful in both practices as they are expensive and take significant time to execute. The results could be costly if not planned and executed correctly.
  •  EMS and OEM relocating manufacturing sites from mainland China to another APAC region
    • Given the complexity of the electronics supply chain, it is not likely that electronic manufacturing will return to the U.S. in the near future. It is reported that OEM companies have begun to look for alternative manufacturing sites to replace their existing plants in China. Thailand, Vietnam, South Korea and Taiwan appear to be on their short lists; and their respective governments are taking full advantage of the trade war by offering favorable incentives to attract large manufacturing companies.
  • Expand China’s domestic electronic component manufacturers
    • For some reliable and reputable Chinese OCMs, this trade war created opportunities for them to enter the global supply chain. Some of these companies can provide good alternative parts for passive components from American brands.

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. 

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Electronic Component Market Update: MOSFET

Posted by Advanced MP Technology

Sep 21, 2018 11:46:22 AM

While MOSFET fabs are increasing production globally, MOSFET lead times continue to extend as demand rises. To accommodate for this market growth, some chipmakers are now turning MOSFET production to 300mm wafers instead of the traditional 200mm or 150mm wafers. According to industry experts, the MOSFET market is expected to reach US $9.6 Billion by 2022.

 

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Electronic Component Market Update: DRAM

Posted by Advanced MP Technology

Sep 4, 2018 6:37:53 PM

As DRAM revenue reaches US $100 billion in 2018, multiple sources predict by 2019 DRAM prices will begin to stabilize.

 

 

With over 40 years of experience in electronic component distribution, Advanced MP Technology is resourceful in providing allocated components and market trends. Our experienced staff provides excellent and reliable customer support through all market fluctuations that occur within the electronic component industry.

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The MLCC Shortage: What’s Next?

Posted by Advanced MP Technology

Aug 22, 2018 8:28:00 AM

Since the second half of 2016, OEMs have been coping with the limited supply of capacitors, specifically Multilayer Ceramic Capacitors (MLCC). Some experts believe the shortage will extend to 2019, while many others expect until year 2020.

 

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Electronic Components Used in Cloud Computing

Posted by Advanced MP Technology

Aug 21, 2018 2:00:09 PM

 

Cloud computing is gaining popularity within daily business operations, especially among small and midsized companies. According to a survey by the International Data Group in 2016, 70% of businesses have at least one application in the cloud and invested an average of $1.62 million in cloud computing. Lower cost, increased security, mobile accessibility and sustainability are the major benefits that cloud computing can provide to businesses. It is estimated that the worldwide cloud computing market will reach $411 billion by 2020.

 

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Capacitor Shortages to Continue At Least Another Year

Posted by Advanced MP Technology

Aug 16, 2018 12:44:07 PM

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CMOS: The Dominating Electronic Component in Image Sensing

Posted by Advanced MP Technology

Aug 14, 2018 11:59:32 AM

Image sensors are found to be essential to many modern-day technologies. CMOS (Complementary Metal Oxide Semiconductor) is one popular type of image sensor that converts light into electronic signals to help the camera create a digital image. These CMOS chips are currently dominating the digital image sensor industry.

 

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How 5G is Disrupting the Electronic Component Industry

Posted by Advanced MP Technology

Jul 31, 2018 1:57:12 PM

 

 

On June 13th, 2018, 3GPP (3rd Generation Partnership Project), the international organization oversees global cellular standards, approved standalone 5G specifications. With the approved non-standalone 5G specifications in Dec 2017, 3GPP believes that “the whole industry is taking the final sprint towards 5G commercialization” with new end-to-end network architecture.

 

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Advanced MP Technology's Memory Market Update for 2H/2018

Posted by Advanced MP Technology

Jul 31, 2018 12:15:33 PM

Current  Memory Update Report

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