Ongoing issues persist in IC market
Due to ongoing industry-wide supply constraints, lead times for integrated circuits (ICs) increased dramatically across the board. In particular, lead times have stretched up to 70 weeks for various automotive grade and industrial grade ICs. In some cases, distributors are unable to confirm their contracted allocations, and some are reporting they will not receive some part deliveries until 2023.
TSMC’s $100 billion growth plan
Taiwan Semiconductor Manufacturing Company’s (TSMC) production capacity is expected to remain tight throughout 2022. However, to accommodate the ongoing component demand, the manufacturer is planning to invest $100 billion over the next three years. This will go toward new fabrication plants – one in the US and another in Japan – to increase production capacity for its silicon wafer business.
TSMC has already increased its costs by 10-20% for mature and advanced process nodes. The rising foundry costs are anticipated to affect CPU, GPU and ASICS pricing. AMD, Intel and Nvidia are among manufacturers that depend on TSMC’s advanced node technology according to Tech Wire Asia.
Broadcom Inc. continues its incremental price increases
Twice within the last year, Broadcom Inc. has increased its pricing on the BCM series by up to 20%. The cause is mostly due to wafer issues and insufficient supply. To implement a more cost-effective manufacturing plan, Broadcom has used these incremental price increases to encourage customers to switch to newer series. This business practice allows the production factories to adopt updated technologies, which will increase efficiency in production.
As this pricing strategy is applied across Broadcom’s products, it will then trickle down its supply chain, affecting lead times. Currently, the lead times for Broadcom BCM series is 54 weeks.
NXP automotive parts shortage continues, resulting in additional price increases
NXP has increased price by 20% on its automotive parts. Another price increase of 30% is expected to be implemented by June 2022.
NXP Tianjin, its China production factory that focuses mainly on MCIMX series MCUs, has been affected by a recent mandated COVID-19 lockdown. As a result, lead times may stretch beyond the current 52-week time frame for automotive parts.
Bosch sensor lead times increase – customers seeing little support
Lead times for Bosch sensors have started to stretch, particularly impacting low-power application sensors optimized for smartphones and wearables. Current open orders are not seeing support from Bosch. The affected series includes BMA253, BMA400, BMA456, BMA422.
Analog Devices, Inc. and Maxim Integrated delayed acquisition impacts lead times
The lead time for Analog Devices, Inc. (ADI) MEMs sensors is currently 60 weeks but pricing remains stable.
ADI’s acquisition of Maxim Integrated is delayed, which has reportedly led to lead times increasing up to 90 weeks for some Maxim parts. Maxim’s DS series lead times have stretched to 70 weeks.
Delays are anticipated to persist following limited factory operations in Asia during the Lunar New Year (Feb. 1-10). These expected delays, as well as limited wafer output to support some parts’ builds, will add to supply constraints.
Xilinx prioritizes tier 1 customers
Xilinx’s production capacity remains in a critical state with no signs of improvement. This has led the manufacturer to shift its support to prioritize global tier 1 customers. The segments that have secured support include aerospace, military, and the US government. In addition, no new orders are currently being accepted, leaving 2022 backlog orders uncertain in an already shaky market.