Severe supply constraints, price escalations, lead time extensions anticipated to continue

The latest data from Supplyframe points to seemingly insatiable demand for electronic components and semiconductors for 2022. Global manufacturers can expect severe supply constraints and cost inflation pressure for many component categories into 2023, according to the report. The new industry intelligence also anticipates extended electronic component lead times, with 70% of all lead-time dimensions forecast to increase.

“Last year we saw unprecedented electronics commodity demand across end market segments, and our new data indicates that voracious demand will continue in 2022, driven by consistent consumer spending and infrastructure investments in a variety of markets,” says Steve Flagg, CEO and founder of Supplyframe. “The 277% year-over-year increase in design activities uncovered by our Design-to-Source Intelligence (DSI) Network provides evidence of this trend.”

But, at the same time, the COVID-19 pandemic, capacity constraints, and raw material shortages will continue to challenge the electronics value chain as will ongoing labor shortages, manufacturing capacity, and transportation disruptions through the first half of 2022, according to Supplyframe’s Commodity IQ report. For select components like analog components, complex semiconductors, frequency control devices, and some resistors, the suffering will last even longer. Severe supply constraints and price escalations for these categories appear likely to last for all of 2022 and into 2023.