Q4 2019 Newsletter

Burton Q4 2019 NewsletterDownload Burton Industries’ Q4 2019 newsletter here.

Component Lead-Time Updates 12/2018

Constraints relative to Multi-Layer Ceramic Capacitors (MLCCs) have subsided a littlDSC05362e, however it is still believed that there will be lead-time concerns and some allocation issues on some MLCC package sizes and values throughout 2019.

A major factor contributing to MLCC constraints was strong growth across automotive, industrial and telecom markets simultaneously. This increased consumption beyond manufacturers’ expectations. Additionally, there has been consolidation in the fabrication market and a relatively flat revenue trend. As a result, there was less incentive or return on investment for continuing commodity lines near end-of-life (EOL) or adding capacity.

The MLCC packages in North America that have the highest EOL risk are large case sizes above 0402 packages with low CV (below 1uf).

The team at Burton recommends that design teams consider what is “acceptable” when looking at alternate parts. For example, could higher voltage, tighter tolerance parts be used? Are analog electronic circuits an option? Where possible also consider smaller packages such as 0402, 0603 and 0201.

Resistor lead-times are reducing and stabilizing from 40-50 weeks to 12-20 weeks.  The worse constraints seem to be behind us.  The one exception is the Current Sense Metal Strip where market leaders are still at 50+ weeks.  This will subside through 2019 as Mexico factories are brought on line.  The difference between the capacitors and resistor shortage is that resistor companies did not consolidate or choose to EOL commodity lines the way capacitor manufacturers did.