Mixed signals trouble component suppliers [Analysis]

The electronics business is facing low demand coupled with spasmodic bursts of orders. E&T discovers that uncertainty is causing problems in the supply chain. The semiconductor industry is entering what is likely to be a lengthy period of component shortages, with some parts already being rationed while lead times on others move further and further out. Quizzed at this month´s Embedded World show, executives at leading companies such as NXP Semiconductors, Freescale Semiconductor, Microchip Technology and Renesas Technology said that even where they did not have lines ´on allocation´´ the industry´s term for rationing ´ serious bottlenecks started to become apparent earlier this quarter. A particular concern is that the electronics business´s previous and frequent experience with cycles of glut and dearth is proving to be little help as demand picks up.