For the first time in several quarters, the electronic components value chain is getting some pricing and lead time relief, as the new Supplyframe Commodity IQ insights reveal. Bloated inventories have led to plummeting memory device lead times and pricing, and the equalization of lead times and pricing for some passive components.
This shift has occurred amid slowing demand in many end markets as central banks continue to raise interest rates to curb inflation and economies worldwide teeter on the edge of recession. But Commodity IQ data indicates that automotive and other sectors that rely on mature process nodes will be plagued by elevated prices and lead times through most of 2023, cited a press release recently released by Supplyframe.
"Component availability is improving and prices are stabilizing across many categories, especially in the area of passive components," said Supplyframe CEO and founder Steve Flagg. "But we continue to see significant challenges related to other components and raw materials. And the economy, energy costs, and escalating geopolitical instability have dampened user demand and sourcing activity and cast a cloud of uncertainty over the electronics value chain outlook."
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