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.