Component price stability and availability improve

Positive signs are showing for a normalized supply-demand balance and reduced pricing and availability challenges, as the industry advances into the second quarter of 2023, according to the recent Commodity IQ insights report from Supplyframe.

Excluding memory devices, 85% of semiconductor pricing dimensions will be stable and the remainder will move squarely in favour of buyers for the second half of 2023, the report says. However, extended lead times for semiconductors, including programmable logic devices and passive components like automotive-specific resistors, will continue into the second half of the year.

“There is reason to be optimistic”

“New report insights, the resilience of world economies to inflation and threats of recession, and China’s reopening economy in the second half suggest there is reason to be optimistic,” says Supplyframe CEO and founder Steve Flagg.

“The report indicates that component availability has improved in large part, and prices across many commodities and sub commodities have stabilized. But electronic component lead times remain longer than historical norms. Component lead times are improving faster than prices as demand in some markets deteriorates. And in this age of macroeconomic uncertainty, where it is becoming increasingly difficult to forecast demand amid mixed end-market signals, further intensification of the Russia-Ukraine war, continuing COVID-19 challenges in China or any number of other disruptions could emerge,” Flagg concludes.