https://epsnews.com/2018/05/23/electronic-component-shortages/ Electronic Component Shortages: ‘No End in Sight’
Electronics component shortages are now so severe that some OEMs believe their growth for 2018 could be stymied if they are unable to get parts.
------
TL;DR: Word-wide shortage of electronic components...and it's affecting every company
------
Basically, the world-wide economy is in growth mode...and electronic component shortages are rampant.
I am the COO of an electronics manufacturing company, and we are being hit by this as well. Simple parts like resistors, capacitors, etc. are running 8+ week lead times (they used to be stock level items). Heck, we have some parts that are now 52+ week lead time (yes...1 year).
Many ICs are being obsoleted...some that are only 8-ish years old. The end result, is that we have already spent over $1 million this year (only 5 months into this year) on engineering expenses related to solving obsolete parts issues and seeing if we can substitute a part from manufacturer A for the specified part that is a 40 week lead time from manufacturer B.
The net result, is that we are now "doubling" or "tripling" up on our purchase orders for electronic components just to keep our supply chain stable. Of course, so is everybody else...which amplifies the problem as we all "grab" for a limited piece of the pie.
Many electronic component manufacturers have placed their parts on allocation. This means that regardless of what you order, you only get shipped to you what they decided to ship to you. So, you may have a demand for 10,000 parts...but they only decide to ship you 1,000 this month. I have a buddy at another company who got very testy with senior management at a major IC manufacturer. The result was not expediting part deliveries...it was cancellation of all open orders!
Finally, the US Government (and other governments in the world) have the ability to classify a defense program as "critical to national security" with the DPAS (Defense Priorities & Allocation System
http://www.dcma.mil/DPAS/). Basically, if it's critical to national defense, the parts have to go to the government first.
Oh - and I forgot about the increase in shipping costs! (
https://www.logisticsmgmt.com/article/2018_rate_outlook_economic_expansion_pushing)
What does all this mean? Prices for raw electronics components are going up...supply is low or nonexistent. Expect more issues with buying stuff...and expect price increases.