Navigating MLCC Shortages in 2019

The component shortages we witnessed in 2018 show no signs of letting up in 2019. While the memory market appears to be stabilizing, the MLCC market is still constrained and manufacturers are increasingly putting product on allocation and extending their lead times. The current market shows lead times of more than 40 weeks.

Some manufacturers are finding it difficult to invest in what are increasingly being characterized as legacy products (case sizes 0603, 0805 and 1206) as they struggle to keep up with demand for smaller case sizes from the ever-growing smart phone and wireless technology market. Smart phone technology is currently consuming 50% of world-wide MLCC stock.

Suntsu can provide shorter lead times, typically at 24 weeks or less. We may be able to ship right away, so check with us for availability of stock.

In late August 2018, the US finalized a second tranche of additional tariffs under Section 301. Shortages of electronic components are being quoted by manufacturers extending well into 2019, and likely even 2020 with lead-times for stable products typically hovering around 8-10 weeks.

To overcome shortages, some manufactures are being forced to consider different technology, relaxing tolerances, and widening specifications.  OEMs may also want to consider fitting or designing in smaller components into their PCB assemblies.

Beginning in 2019, Suntsu is organizing our engineers, buyers, and sales managers into strategic teams ideally-suited to conquer these component challenges. Now is a really good time to contact us! Suntsu provides complimentary engineering support, and we design custom inventory management solutions to ensure your product pipe-line stays full no matter what.