ICs update: Sporadic shortages drive the market

USA: According to Converge Market Insights, there has not been any significant change to the integrated circuit (IC) market since our last Market Insights report.

Once again, we are tracking some sporadic shortages in some product lines, but nothing that is sustained over a long period. Most of these shortages are due to small upticks in demand.

With many semiconductor manufacturers cutting back on production, and less product on the shelf at franchise distributors, it is more difficult for OEMs and CEMs to quickly pick up supply to solve these spot shortages.

However, there are still plenty of cost-savings opportunities in the spot market, given some of the excess material that exists in the market. With some customers slowing down or cutting production, there are some great potential cost savings available to customers. In addition, companies with date code flexibility can certainly take full advantage of this market and the opportunities it presents.

Converge does not expect any significant changes in market conditions over the next couple of months, although some predict the market will experience an overall uptick at the end of this year.

That would certainly have a significant effect, given all the shutdowns and cutbacks by semiconductor manufacturers over the last year. Some of that optimism could be tied to what some see as the beginning of the turnaround of the global economy. For now, the market waits.