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Meeting customer demand despite severe worldwide capacitor shortage

6th August 2018

Alex Lynn

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Distributors continue to help cushion customers from the effects of components shortages, though there are signs of a softening market. Addressing analysts on a call hosted by seeking alpha.com, Arrow Electronics CEO Michael Long indicated that while it’s global components business leading indicators remained healthy and its backlog continued to grow at robust rate, the rate of sequential year-over-year growth moderated.

“Lead-times were largely stable across our portfolio (in Q2), unlike last quarter when we noted some extension,” he observed.

“I expect a softer landing. I expect things to continue. We're seeing strong design activity which also tells us that the market is still chugging along and new products are still getting developed. That's one of the first things that start to go when you when you see a pullback. So not expecting a pullback, just expecting a little slower growth,” said Long.

Andy King President of Arrow’s Global Components unit added, “We still have a fairly constrained supply situation on MLCC (multilayer ceramic capacitors). There's more product actually coming through and out to the marketplace, but the demand is outstripping that. So we're continuing to manage our supply chains with our supplier partners very, very carefully. At this point, we are – more things are getting built, more things are getting to market. So we're sort of keeping pace with the demand, but it's a process that we keep very close tabs on and work very carefully with our customers and suppliers.”

Future Electronics is also taking steps to help customers survive the current crisis in capacitor and passive component shortages.

Its Product Marketing teams have been working closely with suppliers and customers to help support customer demand for ceramic capacitors, multi-layer ceramic capacitors, tantalum capacitors and many more.

The discrete semiconductor supply situation is also concerning with MOSFETs, diodes and transistors in popular package types being increasingly constrained as well.

“We are proud to be the leading capacitor distributor in the world,” said Jacques Hing, Vice-President, Worldwide, Capacitors at Future Electronics. “We are committed to helping our customers through this challenging period, so they can maintain production and avoid line-down situations.”

Find the video from Future Electronics explaining the steps they are taking to help their customers here.