Friday, September 24th 2021
The New Chip Shortage is Passive Components
If you thought that the chip shortage was bad, then the building shortage of passive components, such as capacitors, resistors, inductors and so on, is going to have you in tears. Due to lockdowns in Malaysia and Indonesia, where most of the well known Japanese aluminium capacitors are made, the factories of Chemi-Con, Nichicon and Rubycon have been shut down for most of July and August. The three companies together control some 50 percent of the capacitor market and it's expected that the current situation in Malaysia will lead to a reduction in capacitor shipments by 30 to 60 percent.
At the same time, the increased demand for everything from computer parts to renewable energy technology has ramped up demand for these components. Some of that business has been picked up by Taiwanese and Chinese manufacturers, but whereas in the past you could get your order in some four to six weeks, the lead times are now three to six months and that's if you're lucky. DigiTimes is reporting that several Taiwanese component makers have seen a YoY revenue growth of 20 percent or more for the first half of this year.
This has in turn led to some of the Taiwanese capacitor manufacturers eyeing buyouts of their suppliers to be able to provide a more streamlined and secured manufacturing pipeline, where they don't have to worry about their competitors buying up stock from their suppliers. The shortage isn't expected to ease in 2021, although if things improve in Malaysia and Indonesia, 2022 might see better supply of these vital components, but right now it's anyone's guess what will happen in the longer term.
Source:
DigiTimes
At the same time, the increased demand for everything from computer parts to renewable energy technology has ramped up demand for these components. Some of that business has been picked up by Taiwanese and Chinese manufacturers, but whereas in the past you could get your order in some four to six weeks, the lead times are now three to six months and that's if you're lucky. DigiTimes is reporting that several Taiwanese component makers have seen a YoY revenue growth of 20 percent or more for the first half of this year.
46 Comments on The New Chip Shortage is Passive Components
Apparently some of the passive component makers have been shipping by air to get their products to their customers, which normally just wouldn't happen, as it's prohibitively expensive for something as "cheap" as these parts.
If you thought 2020 was a bad, look no further than to 2021 for a worse one...It most likely depends. I would guess the Taiwanese companies would be acceptable replacements, but the PRC ones, maybe not so much.
I mean, Gigabyte should be all I have to say here. Maybe PSU as well.
I will say this for Gigabyte though, the industry changes fast and there is time to redeem themselves when next gen comes out. I remember only 1-2 generations ago ASRock was awesome and best bang for buck, many + reps on every forum I read, but this last release of chips... the worst performing VRM's across every budget, mediocre reviews across the board etc.
It always swings back and forth. Though at this point I'd probably just buy Asus stuff, its a premium in price but worth it.
Pallet Prices Up 400% Amid Shortage
World Trade at stake.
On the other hand, COVID has forced some Top US breweries to ship to EU, that they never did before, as they cannot sell them enough locally anymore and explore different means to sell their stuff. It is one of the rare positive things this pandemic has brung to me.