USA: Presenting Converge's Market Intelligence Report, August 2009.
Overall, the general IC activity has remained relatively flat compared to last month. However, the shortages discussed in last month’s Market Insights report for the Xilinx Virtex 5 product line continue, as do those mentioned from TI, Altera and Freescale.
Activity for ST Micro has increased over the last several weeks, most likely out of concerns regarding the ITC's Tessera ruling. Consumer/telecom demand is still subdued, but demand in the industrial PC and embedded technology sectors are showing some signs of life.
Fallout from the ITC's Tessera ruling has been difficult to gauge, as specific information regarding the judgment has been slow to emerge. Some suppliers have adhered immediately to what they perceive will be the strictest letter of the law, while others have been quick to move inventory to make it available for sale in anticipation of enforcement.
In addition, increased customs enforcement by nations in Asia and Europe have made it much more difficult and time-consuming to move certain products, including FPGAs, from one region to another. Converge is advising our customers to add an additional one to two weeks to lead times on parts originating from these countries.
Showing posts with label semiconductors and ICs update. Show all posts
Showing posts with label semiconductors and ICs update. Show all posts
Thursday, 13 August 2009
Wednesday, 17 June 2009
Semiconductors and ICs update: Demand for military connectivity devices remains steady
USA: According to Converge Market Insights, in tracking the market, Converge does not expect any significant changes in demand over the next several months, continuing the holding pattern that the IC market has seen in recent months.
Manufacturing fabrication capacity is at the lowest it has been in a considerable amount of time, and distribution inventories have been slashed to minimal levels. However, for the second month in a row we have seen a month-over-month increase in real shortages due to these low inventory levels.
Some customers are still trying to reduce inventory levels, although the number of those doing so has decreased somewhat over the last several months. Nevertheless, there is still available inventory in the market for savvy bargain hunters.
Additionally, Converge is tracking a minor reduction in demand in some military sectors, indicating a slowing of new manufacturing over the next six to 12 months. Demand for military connectivity devices, however, appears to be unchanged, as the repair business remains steady.
Manufacturing fabrication capacity is at the lowest it has been in a considerable amount of time, and distribution inventories have been slashed to minimal levels. However, for the second month in a row we have seen a month-over-month increase in real shortages due to these low inventory levels.
Some customers are still trying to reduce inventory levels, although the number of those doing so has decreased somewhat over the last several months. Nevertheless, there is still available inventory in the market for savvy bargain hunters.
Additionally, Converge is tracking a minor reduction in demand in some military sectors, indicating a slowing of new manufacturing over the next six to 12 months. Demand for military connectivity devices, however, appears to be unchanged, as the repair business remains steady.
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