Sourcing - ON TRACK FOR 2021: THE RACE BEGINS - Electronics Sourcing
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sourcing ELECTRONICS JANUARY 2021 ON TRACK Despite pandemic, distribution is strong Chip market will rise 8.4 per cent FOR 2021: page 18 page 30 THE RACE 2021 outlook: the curve is key Expect tight supply especially earlier in 2021 BEGINS page 26 page 34 AN MMG PUBLISHING TITLE
Editor's Word sourcing ELECTRONICS JANUARY 2021 On the cover – January 2021 On track for 2021: ON TRACK FOR 2021: THE RACE Despite pandemic, distribution is strong page 18 2021 outlook: the curve is key Chip market will rise 8.4 per cent page 30 Expect tight supply especially earlier in 2021 the race begins BEGINS page 26 page 34 AN MMG PUBLISHING TITLE Contents 04 2021, a year of forced innovation News I suffer from an addiction to Sensing a more controlled environment technical innovation. I was born to identify engineering problems and try to design solutions. The 12 upside is that I love every minute, of every challenge. The downside is that any form of innovation can View from the Top be exhausting, time consuming and expensive, plus there is no guarantee Distribution: past, present, future of success. It typically takes me 10 iterations to get close to a solution I’m happy with. 16 Thus, I understand exactly why some distributors shy away from supply Passives chain innovation. They likely have a loyal customer base, established MLCC supply is beginning to tighten linecard and stock on the shelf. Why fix what isn’t broken? Then along comes a global pandemic. 32 Customers cancel orders, suppliers close factories and stock levels fall. Suddenly there is a problem to solve. Circuit Protection Supply chain shocks are typically Purchasing’s role in board protection localised, short duration and navigable. Likewise, systems and process quickly return to 38 equilibrium after the disruption has been removed. Buyers’ Guide 2021 feels different. The duration of this pandemic seems to have given All the facts and figures to help you buy companies long enough to learn how to conduct business differently. Every distributor I have spoken to thinks Issue 100, Vol.12 No.01 there will only be a partial return to what we used to call normal. Contact Published 12 times per year by MMG Publishing US Ltd MMG PUBLISHING US Ltd The big differences will be how EDITORIAL CIRCULATION Normandale Lake Center device manufacturers, distributors Managing Editor: Jon Barrett Circulation Manager: Vicky Leary 8400 Normandale Lake Boulevard and OEMs communicate at a jonb@electronics-sourcing.com vicky.leary@electronics-sourcing.com Contributing Editor: Amy Barker Circulation Account Manager: Liz Poole Suite 920, Bloomington MN 55437 Tel: 866.364.0951 personal level and share both amyb@electronics-sourcing.com liz.poole@electronics-sourcing.com Fax: 952.378.2770 technical and commercial data. Editorial & Production: Thomas Smart thomas.smart@electronics-sourcing.com PUBLISHER @Electrosourcing There is also the question of who Mark Leary Printed in the United States holds stock, how much and where? ADVERTISING mark.leary@electronics-sourcing.com © 2021 MMG Publishing US Ltd Advertisement Manager: Emma Poole Office Manager: Denise Pattenden emma.poole@electronics-sourcing.com denise.pattenden@mmgpublishing.co.uk To cope with this, supply chains need a heavy dose of innovation: ELECTRONICS SOURCING IS INDEPENDENTLY DESIGN ABC AUDITED 2005/2019 like it or not. Many distributors are Graphic Designer: Josh Hilton josh.hilton@electronics-sourcing.com well down this road already. Don’t get left behind. Articles appearing in this magazine do not necessarily express the views of the Editor or the publishers. Every effort is made to ensure the accuracy of information published. No legal responsibility will be accepted by the publishers for loss arising from articles / information contained and published. All rights reserved. No part of this publication may be reproduced or stored in a retrieval system or transmitted in any form without the written consent of the publishers. Cover image – ©istockphoto.com/LeArchitecto January 2021 03
N ES News Sensing a more controlled environment Heilind Electronics has expanded its sensor offering with the Omron D6T MEMS thermal sourcing sensor, designed for non-contact temperature ELECTRONICS JANUARY 2021 measurement and human detection. Designed for target areas between -40 and over 200oC, the D6T sensor uses Omron’s proprietary MEMS sensing technology to measure the surface temperature of an area without contact. Unlike typical pyroelectric human presence sensors that rely on motion, the D6T can detect the presence of stationary ON TRACK Despite pandemic, distribution is strong Chip market will rise 8.4 per cent humans through body heat. Through connection to smart devices the sensor FOR 2021: page 18 page 30 THE RACE 2021 outlook: the curve is key Expect tight supply especially earlier in 2021 BEGINS can automatically switch off unnecessary page 26 page 34 AN MMG PUBLISHING TITLE lighting and air conditioning when people are not present. Each model includes a MEMS thermopile, ASIC and a signal processing microprocessor. D6T is available in narrow and wide field versions. The narrow field version suits applications where the sourcing ELECTRONICS ELECTRONICS SOURCING JANUARY — ANNUAL EDITION 2021 JANUARY — ANNUAL EDITION 2021 object is a short distance away, while the wider New flange-style field version can provide a greater view of a waveguide-to-coax scene. Resolutions include single pixel, 1 by 8 and 4 by 4. A high-definition 32 by 2021, A YEAR OF SUPPLY adapters in stock 32-pixel version is also offered. CHAIN INNOVATION Pasternack has expanded its line of euro- www.heilind.com style flange, waveguide-to-coax adapters for satellite communications, radar, wireless communications and test instrumentation applications. Power control and protection ICs Capacitors: popular Expect tight supply and in demand especially earlier in 2021 The adapters feature waveguide sizes from page 08 page 57 join marketplace 2021 outlook: the Despite pandemic, WR-22 to WR-430, European IEC standard curve is key distribution is strong page 36 page 60 flanges (including UBR square cover, UDR and AN MMG PUBLISHING TITLE PDR types), right-angle and end-launch coaxial Digi-Key has announced a global distribution connector options and N-type, SMA, 2.92mm partnership with GLF Integrated Power, which and 2.4mm connector choices. provides silicon power control and protection integrated circuits for IoT, wearable, medical, RF Passive Components’ product line manager, automotive, asset tracking and security markets. Steven Pong, said: “Our new line of flange- The products are available through the Digi-Key sourcing ELECTRONICS style waveguide-to-coax adapters comply with Electronics Marketplace – JANUARY/FEBRUARY 2021 European IEC standards to support customers 201208_YTDBH_ELECSRG_EU_Snipe.indd 1 12/2/20 12:20 PM and waveguide systems that utilize these flange Digi-Key’s vice president of global supplier standards. The new adapters are all in-stock and management, David Stein, said: GLF Integrated available off-the-shelf to address our customers’ Power’s ultra-efficient semiconductor offerings urgent needs.” provide the IoT, wearable and portable device market next-level options for longer lasting, The adapters transform waveguide transmission more efficient designs.” lines into 50-ohm coaxial lines, allowing power to be transmitted in either direction with each GLF Integrated Power’s CEO, Eileen Sun, adapter covering the full frequency range of its added: “As a trusted global supplier of waveguide band. electronic components and a key resource for design engineers and supply chain managers, www.infiniteelectronics.com the Digi-Key Marketplace is a great fit for GLF load switches, power deep sleep protection components, battery protection ICs and power multiplexers.” Digikey.com 04 January 2021 • www.electronics-sourcing.com
N ES News In Brief Investing in interconnect Electronic Connector Co is expanding with a move to a new facility in Downers Grove, Illinois. With everything Investing in US under one roof, customer benefits include: faster, engineering more efficient assembly and warehousing; increased flexibility to grow connector Expanded US production and ShrinkMate EMI/RFI heat shielding power portfolio Gowanda Components Group completed a nearly 50 per cent expansion at its Dyco production; and a more robust TT Electronics has completed the acquisition of Electronics facility in Hornell, New York. The infrastructure and enhanced Torotel, a US-based designer and manufacturer 12,000ft2 expansion is designed to help the supply chain logistics. of high-reliability power and electromagnetic company address market demand for its eccoconnectors.com assemblies and components for the aerospace products, enhance workflow and improve PWM fans immediately and defense markets. The acquisition broadens operational effic-iency. available TT’s power electronics capabilities and expands Sager Electronics is now the company’s presence in the US aerospace Dyco Electronics’ president, Greg Georgek, stocking NMB’s PWM cooling and defense market, building on the recently said: “We manufacture custom components fans. This new series of acquired Covina. and assemblies for the rail industry, so size and high performance, four- scale were important drivers for this expansion. wire, PWM driven fans, TT Electronics’ CEO, Richard Tyson, said: “We In addition, we’ve seen growth in our overall with tachometer signal, are designed to offer high torque, are delighted to complete the acquisition custom manufacturing business in recent years, efficient motor technology of Torotel. It represents a fantastic fit within with projections for that to continue, as our and aerodynamic impeller our existing US power electronics business, customers have increased their outsourcing of design. Stated benefits include strengthens our position in critical defense more assemblies to Dyco.” increased fan life expectancy, applications and further develops our global energy efficiency, lower electromagnetics design and manufacturing Dyco engineers custom solutions for aerospace, vibration/noise and current capability. We’re delighted to be able to military, space, medical and industrial spike protection. welcome the Torotel team into the TT group.” applications, in addition to providing solutions www.sager.com for rail transportation. Weaker PCB bookings TT Electronics Power Solutions’ EVP, Michael Commenting on October’s Leahan, added: “Torotel is a great fit for TT GCG’s CEO, Don McElheny, added: “GCG PCB figures IPC’s chief supporting our strategy to build leading has been strategically focused on having its economist, Shawn DuBravac, positions in high-performance, high-reliability component and assembly manufacturing be said: “The current environment markets such as aerospace and defense USA-based for decades, long before it recently is starting to look increasingly where the proliferation of electronics is driving became popular to do so. GCG’s investment in like a normal recession and increased demand for our custom power the expansion of Dyco Electronics is yet another less like the initial shock. There does appear to be management and conversion systems.” example of our commitment to this strategy.” some backlog within the system which should sustain www.ttelectronics.com www.gowandacomponentsgroup.com shipments in the next month or two, but it is increasingly looking like weaker bookings, especially for flexible PCBs, will define the start of 2021.” Enhanced security for IoT www.ipc.org and industrial applications ISO14001 and 45001 Mouser is now stocking Renesas Electronics’ code flash memory, 256Kbyte of SRAM, and a certifications new RA6M4 32-bit microcontrollers. Uniting capacitive touch sensing unit. NewPower Worldwide has connectivity, security and performance, RA6M4 The devices’ security capabilities include an achieved ISO14001 and ISO45001 certifications. Chief microcontrollers are designed to speed the integrated security cryptography module with quality officer, Barry Lafontaine, development of edge and endpoint IoT devices several accelerators, power analysis resistance said: “These certifications and applications such as metering, HVAC, and tamper detection. They are supported by validate our best practices premises security and industrial equipment. Renesas’ Flexible Software Package (FSP), which in managing and minimizing enables rapid implementation of complex our impact on the environment The microcontrollers are built on a 40nm security and connectivity functions by allowing and our responsibility to process, consuming 99μA/MHz in active mode. customers to reuse legacy code and combine it protect the health and safety They boast a 200 MHz Arm Cortex-M33 core with software from other Arm partners. of our employees.” www.newpowerww.com based on the Armv8-M architecture with Arm TrustZone technology and come with 1Mbyte of mouser.com 06 January 2021 • www.electronics-sourcing.com
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Supply Chain Management Shock proofing your supply chain Diversifying vendors and locations allows manufacturers to be more adaptable to changing markets and less affected by supply chain disruptions The pandemic has had a caused by force majeures put be conducted without delay contingency plans. Companies largescale impact on demand in place by governments. to ensure new suppliers are should be aware of what and supply, exemplifying compliant and reliable. will be affected, the gravity the need for stronger supply Fusion Worldwide’s COO, Paul of the impact and how chains. A second wave could Romano, said: “Companies Fusion Worldwide’s EVP prepared they are. result in further global normally look to introduce of trade, Tobey Gonnerman, disruption, making supply secondary suppliers during added: “Strong vendor By closely monitoring market chain resiliency even more chaotic events but quickly partnership with events and the status of their crucial. Despite this, a recent forget the necessity once the open market suppliers are supply chains in relation to Gartner survey showed issue is resolved. With the critical to an OEM’s ability it, companies are equipped that only 21 per cent of pandemic, companies will to deal with supply chain to take proactive actions and respondents stated they have a also need to geographically adversity. Those who wait immediately react. highly resilient network, which diversify their supply chains until the shortages occur includes the ability to shift to lessen their dependence are the ones most severely Finally, with manufacturers sourcing and manufacturing on a single location.” impacted: in terms of over- of certain components activities around quickly. cost and quality assurance.” condensed in one region, Geographical diversification one type of product will be To successfully accomplish a is a long-term solution due One mitigation strategy greatly affected by political resilient supply chain, sourcing to the time and investment is to establish alternative events and natural disasters. components from various required. Despite this, it is sources with the ability to By spreading out factory and suppliers and geographically a powerful step in securing supply components normally supplier location, companies diversifying production supply chains. By strategically produced by a single source. will be more protected against stages is key. Though supply placing and out-spreading condensed shocks. chain diversification is vital where product is produced, Another option is to expand in protecting manufacturers procured and stored, the approved vendor list www.fusionww.com against shocks, its importance companies are more able to or AVL. This offers more is usually only reminded when safeguard against unexpected options when supply chain weaknesses start to show. future catastrophe. disruptions occur. A company with a large AVL can more According to PwC, CFOs In the short term, companies easily solve component expecting to change the can diversify their vendor shortages and is more able breadth of their supply chains base and products. As to leverage suppliers. went from 30 to 42 per cent disruption escalates, it is from the beginning to the end important to start improving Understand what supply chain The top three places capacitors are being of March. This correlates with strategic sourcing strategies. links are vulnerable, then manufactured account for 56 per cent of its global the spike in factory shutdowns Vetting processes need to set up risk management and production. Source: z2data.com 08 January 2021 • www.electronics-sourcing.com
SUPERIOR SOURCING WITH A GLOBAL REACH. Fusion Worldwide is the premier sourcing distributor of electronic components and finished products. We work alongside customers to create customized solutions to overcome their biggest supply chain challenges. Learn more about the Fusion Advantage at www.fusionww.com.
Anti-counterfeiting Uncovering the truth about semiconductor counterfeiting In this article, Rochester Electronics discusses why authorization is the ultimate tool in the fight against counterfeit components In times of supply shortage, or Heat and mechanical damage datasheet only provides a where component obsolescence (from part removal) can result subset of the characteristics limits availability, counterfeit in long-term reliability issues. tested by the original chip devices are more prevalent. Exposure to excessive humidity, manufacturer. Test houses Counterfeiters have moved water and salt air atmosphere do not have the original beyond incorrect logos and is often routine in used part manufacturer’s test program. packages with no die inside, recovery. This process can caught by the simplistic visual produce an authentic used Effective test requires high fault inspection testing used by product that has questionable coverage and accurate fault those following AS6081. reliability. Authenticity does not modeling done by the OCM. Counterfeiters now have more ensure reliability. AS6171 calls out far greater sophisticated operations. testing for parts bought through Identifiable surplus stock independent distribution and Customers whose normal and traceability provide no yet is rarely fully followed. supply chain proves insufficient guarantee regarding the storage may assume unauthorized or conditions encountered during Authorized after-market gray market sources are the the component’s complete suppliers and manufacturers, only solution and that ‘testing’ shelf-life. such as Rochester Electronics, can eliminate risks. Nothing provide the only 100 per cent “” could be further from the truth. Customers may incorrectly guaranteed and counterfeit- assume testing provides a 100 free source for active-shortage One type of counterfeit per cent genuine guarantee. and obsolete semiconductors. semiconductor is non- At its most basic, third party Finished devices stored and functional or scrap product testing comprises one or some supplied by authorized sources Authorized after- which is re-marked as good and of the following techniques. are guaranteed to come only re-sold. Likewise, functional from the OCM and to have market yet sub-standard product purchased by a counterfeiter Paperwork and visual inspection is unlikely to been stored in-line with the OCM’s recommendations. suppliers provide is remarked and re-sold as full identify professional counterfeit These products offer a 100 per the only 100 per grade product at an increased price. devices. Traceability documents and certificates are regularly cent conformance guarantee. cent guaranteed forged to support the overall As a licensed manufacturer, and counterfeit-free Recycled and recovered deception. X-ray inspection is Rochester can offer ongoing components are also sold as unlikely to identify fraudulently production of obsolete devices. source for active- new. The process of removing up-screened, well-marked Built from known-good-die, shortage and obsolete parts from boards and altering recovered and re-used, or these products are tested using logos can cause long-term recovered failed-test devices. the OCM test procedures and, semiconductors damage not seen on first Basic continuity or functional in many cases, the original test power-up. Chemical residues testing will not identify the equipment: guaranteed 100 per from the cleaning process can fraudulently up-screened or cent compliant to the original slowly enter and contaminate well-marked recovered and re- specification. the device, causing bond-pad used devices. Finally, regarding Why the only risk-free solution is or bond-wire failures in-service. full functional testing, the www.rocelec.com fully authorized 10 January 2021 • www.electronics-sourcing.com
© 2020 Rochester Electronics, LLC. All Rights Reserved. WE KEEP THINGS MOVING. The world’s largest continuous source of semiconductors. Authorized Distribution Licensed Manufacturing Manufacturing Services
View from the Top Distribution: past, present, future Electronics Sourcing discusses history, acquisitions, challenges and recipes for success with Hughes Peters’ president, Mike Okel Hughes-Peters might be a recent years and how do board with the company relatively new distributor you envisage the electronic focus and expectations. to some ESNA readers. component supply chain Second, we developed a very However, the company has developing? specific business model. Our been in business for 100-years model focuses on long-term and boasts a long history I cannot speak about the customers we can do demand in electronic component first 60-years since I have creation with. We also provide distribution. The company has only been in distribution value-added services for those experienced strong growth for the last forty. The list customers, which takes the over the last 20-years under of challenges during those transactional cost out of their its current ownership: Mike years would be very long. business while shortening lead Okel, president; Mike Smith, In general, distribution has times. We know our strengths VP of sales; and Donna faced margin erosion, while and we stay in our lane. Hensley, Vice President. needing to bring more services Q to its customers. Distributors www.hughespeters.com Among four that have survived and acquisitions in grown have developed ways 12-years, Hughes-Peters to use great employees with acquired Hammond technology to achieve success. Hughes Peters’ president, Mike Okel Electronics in 2017 and Distribution does more today Tonar Industries in 2020. than just pick and ship parts. How are customers In many cases, we have benefitting now that these become part of the customer’s companies are under the manufacturing team, and “” Hughes-Peters umbrella? part of our supplier’s design team. Being the company Every acquisition has been in the middle we take on a building block for Hughes new responsibilities for our Peters. In each case we have expanded our geographic customers and suppliers. We must continue to be an “easy Distribution has faced reach, added talent and to do business with” company, margin erosion, while needing to bring picked up new manufacturers while adapting to the changes for an already strong line and challenges our industry card. The benefits for these presents. more services to its Q added locations include the support of a financially To what do you customers sound company; inventory attribute your management programs and company’s consistent value-added services; and growth? access to a best-in-class line card. I believe two key things Q have made Hughes Peters 2021 sees the successful. First and foremost, company’s 100th our great people. You will Birthday. What have been never have a strong, growing the biggest distribution business without a team challenges over more that is dedicated and on 12 January 2021 • www.electronics-sourcing.com
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Ask the Experts Capacitors: plentiful, simple and cheap? Newark’s supplier account manager, Euan Gilligan, explains why something as simple and cheap as a capacitor can suffer supply chain problems Why are capacitors always the main Japanese based demand. Since this time, a problem component to manufacturers, notably many have invested in new source? They are so plentiful, TDK & Murata, decreasing production facilities and simple and cheap there should production of their larger additional manufacturing never be shortages in the case size ceramic capacitors equipment to be more agile supply chain. in favor of moving to smaller in ramping up production case sizes, created an issue to meet future increases in 2018 saw significant growth with availability of capacitor demand. 2019 lead times have in market demand for components such as MLCCs. reduced and stabilized at a capacitors. This was due to more normal level so there Newark’s supplier account manager, the increase of component Manufacturers impacted by is currently good component Euan Gilligan content in applications, driven extended lead times didn’t availability in the market. by market segments such have enough flexibility in as automotive. Increased their production capacity www.newark.com demand, alongside some of to scale up to the market Capacitors: more than meets the eye AVX’s technical sales group manager and fellow, Ron Demcko explains that capacitor manufacturing is an increasingly complex process, making order planning critical to supply flow Capacitors play an essential is anything but simple. There Manufacturing process time, role in electronics and are are hundreds of thousands coupled with exponentially literally everywhere in our of variations of capacitors increasing use by an ever- daily lives. Their presence is and manufacturing requires larger number of systems, growing exponentially as cutting edge technology makes order planning new electronic devices emerge coupled with the engineering of capacitors critical to and as existing electronics of the latest rare materials, supply flow. get more complicated, useful which both have a defined and powerful. time to complete. www.avx.com Many users consider An example is the multi-layer AVX’s technical sales group manager capacitors to be simple ceramic capacitor (MLCC). and fellow, Ron Demcko two terminal devices that Size has reduced to the point store and release electrical where devices are about charge or block DC signals the size of a grain of salt. in circuitry. Though the Likewise, the number of layers application understanding in MLCCs has increased to is broadly correct, the >1000 over the years. construction of these devices 14 January 2021 • www.electronics-sourcing.com
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Passives MLCC supply is beginning to tighten As lead times grow, expect the MLCC market to tighten throughout 2021. By TTI’s vice president of product and supplier marketing, Jeff Ray After a prolonged lull during Increased demand from true most MLCC suppliers 2019 and most of 2020, the the communications and increased capacity through supply of MLCCs is beginning transportation sectors can factory expansion and to tighten. Lead times are generally be attributed additional manufacturing extending across many case to advancements in 5G equipment, an unfortunate sizes and suppliers, both in infrastructure and cellular result of the soft 2019 and commercial and automotive- handsets in Asia, and to 1H 2020 MLCC market is that grade components. a lesser degree the global many manufacturers reduced automotive market’s move their workforces. Re-staffing Factors causing this tightening toward the electrification trained MLCC production include: increased demand of drive trains along with operators and inspectors has from the communications more robust safety and remained a challenge. and transportation infotainment applications. sectors; depleted global The communications sector Here is what we see inventories; and supply chain is a large consumer of small developing in the market challenges due to increasing case size MLCCs (≤ 0402) right now: manufacturing facility in both commercial and absenteeism and increased automotive grades. Current market conditions transit times. Expect the see small case size (≤ MLCC market to intensify For the most part, the 0402) low-CV commercial consistently throughout 2021. remaining factors can be grade MLCCs being attributed to supply chain available, with few issues in 2020. This has been exceptions by type or a year of adjustment in the manufacturer. global supply of MLCCs, with TTI’s vice president of product and supplier customers, distributors and Small case (0201 and marketing, Jeff Ray manufacturers correcting 0402) low-CV and high-CV their inventory levels, maybe automotive grade MLCCs even overcorrecting in some are less stable: lead times cases. The lower-than- are extending by eight to market demand for MLCC 10-weeks into the 24- has come online to address inventory has left some week range. this market demand. customers’ supply chains Lead times remain in exposed to the recent uptick Large case (≥ 0603) the 20 to 24-week range in the communications and high-CV automotive for both low-CV and transportation markets. grade MLCC lead times high-CV commercial have remained extended and automotive grade This combination of throughout 2020 and are components. increased demand and recent currently in the 20 to 24- developments of increased week range. As we move from a difficult absenteeism at factories have 2020 into a new period placed a strain on MLCC Large case (≥ 0603) of market uncertainty, the supply chains. As distributors low-CV commercial grade importance of having a and customers shift into MLCC lead times are also distribution partner becomes catch-up mode, the increase extended, typically in the even more apparent. As in demand will foster further 17 to 22-week range. Note the market leader in MLCC MLCC lead-time extensions. that lead-times for 1206- distribution, we’re committed 2220 case size components to communicating today’s Capacity limitations may (which are on the upper evolving market conditions to seem unlikely in light of end of the large-case MLCC help you make the best supply well-documented MLCC portfolio) have remained chain decisions. manufacturing capacity extended throughout 2020 increases in 2019. While it’s as less additive capacity www.tti.com 16 January 2021 • www.electronics-sourcing.com
Ask the Supply Chain Capacitor distribution: exploring the fundamentals Digi-Key Electronics’ vice-president, global supplier management, David Stein Digi-Key Electronics’ vice-president, global supplier management, David Stein discusses some of the fundamentals underpinning capacitor supply and demand The capacitor industry experiences shortages for a variety of reasons. To start, capacitors are widely used in various end markets with high output. The automobile and consumer industries are just two examples where sometimes thousands of capacitors are needed to build a single product. Secondly, capacitor suppliers have consolidated and some manufacturers have ended production of certain capacitors due to lack of supplier profitability, causing less supply and higher prices. Increasing factory capacity can take anywhere from 12 to 18-months and is very costly, whereas capacitor demand has remained robust in new design activity. Manufacturers have been hesitant to invest given the overall pressures on average selling prices over the past 10-years. Finally, over the past two decades, suppliers have focused on creating, designing and manufacturing smaller, more powerful products. Manufacturers have shifted production output to smaller case size products versus larger case sizes, resulting in shortages for designs with larger case sizes. To summarize, the popularity of capacitors in design activity will continue. Suppliers have not made major investments to shift supply to the market. Therefore, continued shortages in certain capacitor categories seemingly are part of the future state. digikey.com January 2021 17
DISTRIBUTION MARKET WATCH Despite pandemic, executives say North American distribution is strong The state of North American distribution is healthy because distributors are essential links in the electronics supply chain James Carbone Electronics distribution we bring to the market for our executives say the state of suppliers and our customers,” North American distribution is he said. robust and will continue to grow because its role in the electronics Some distributors reported sales supply chain is essential and increases for the year, while growing in importance to both others say their businesses electronics component buyers bounced back in the third and and component manufacturers. fourth quarters and they expect “American strong sales growth in 2021. While the coronavirus pandemic Longer term, distributors expect distribution is very resulted in double-digit declines continued healthy sales growth strong. Part of the in sales for some distributors in North America because of in the second quarter of 2020, stronger component demand reason it’s been the pandemic will not have from such segments as 5G, strong for us is we a long-term impact on sales medical, artificial intelligence growth. Distributors say they and alternative energy. At the are more involved have weathered the downturn same time more traditional on the design side” caused by the pandemic and customer segments such as North American business started industrial and automotive, to recover in the second half of will continue to grow in North Mark Burr-Lonnon, senior vice the year. America. president EMEA, Asia and global service at Mouser Electronics Distributors say the recovery “American distribution is very shows the resilience of the North strong,” said Mark Burr-Lonnon, American distribution industry senior vice president EMEA, Asia Distribution differences as it does in Asia,” he said. Other and confirms how important and global service at Mouser Distribution in Asia is different customer segments such as the role of distribution is in the Electronics. “Part of the reason than in North America in some Internet of Things, industrial and electronics supply chain. it’s been strong for us is we are ways. “The Americas distribution medical are strong segments When the pandemic hit North more involved on the design side. business is more similar to with distributors worldwide. America last March, “we did not The U.S. remains a powerhouse the European market than it Burr-Lonnon added the military- miss a day,” said Phil Gallagher, of design.” is to Asia, specifically with our aerospace market is a “strong Avnet CEO. “Everybody thought concentration of mid-sized market for distribution in North the supply chain was going to be He said while Mouser is seeing industrial OEMs that work to America and Europe,” but not in disrupted. The silver lining for strong growth in Asia and Europe provide solutions across a Asia. us is we did not miss a day,” he because it is “fertile ground for broad range of applications,” said. “I think it further explains us to grow, we see good growth said Rick Marano, president of Don Akery, president, TTI the positive value that we In the Americas. This year (2020) Arrow Electronics’ Americas Americas, said emphasis on bring to the technology supply were going to be up over six per components business. total cost of ownership (TCO) chain. We’re in the center of cent in the Americas in terms of is another way North American the technology supply chain. It dollars and the number of buyers,” Consumer does not play as distribution is different than C reinforces 368145-ESNA the importance Market Watch Ads of - 2what Spreadshev1said. 2.pdf 1 11/19/20 6:47 PM significant a role in the Americas distribution in Asia. He said Asian C M M Y Y CM Widest selection of ck CM N In sto MY CY electronic components MY CY o CMY CMY K K
EXCLUSIVELY SPONSORED BY MOUSER ELECTRONICS customers focus more on piece future,” said Akery. As electronic price and immediate stock than content continues to increase, on cost of ownership. distribution will be needed to Avnet CEO Phil Gallagher help smooth the demand cycles, North American and European he said. customers “require competitive pricing, but it is not the only Distribution will play a key role data point in their procurement in managing the supply chain for decisions,” said Akery. They seem the largest customers but will to value distributors’ support of also continue to support the long their design efforts as TCO. tail of smaller customers, Akery added. TI has seen its customer “Relationships and He added North American base in the Americas and globally trust matter. Our customers are buying more components through distribution increase for years as more “electronic capabilities are being customers and than they were 10 years ago. added to many products,” he said. suppliers have “The component shortages from 2017 and 2018 helped drive the The role of distribution will choices and they distribution value proposition of evolve especially with how will choose to do assurance of supply, especially distributors interface with on the low average selling price customers. “We are seeing a large business with components,” said Akery. increase in customers connecting people they trust” directly with our systems via APIs Many buyers analyzed the “cost (Application Program Interface) of missing components to the to receive real-time information consolidated in terms of suppliers Gallagher noted that distribution cost of having a distributor required to support their and distributors over the last design support is growing in inventory and pipeline inventory business,” said Akery. “This digital 10 years, and over that time, North American and other regions and determined that it is much interface is an opportunity and a expectations from our customers of the world. “ For years all the less expensive to work with a risk for distributors,” he said. and suppliers have increased,” designs were done in the West distributor,” he said. Buyers moved said Marano. and all the production was done from using only purchasing The use of APIs is an example in Asia-Pac. That’s not the case price variance (PPV) as the of how the distribution business Customers expect that anymore,” he said. While there sourcing reason to total cost is changing. However, change distributors “supplement their is still a lot of design in North of acquisition/ownership. is a constant in electronics efforts across a broad range of America, more design work is also distribution and has had an new and existing technologies” being done in Asia, he said. Smoothing demand cycles impact on the role of distributors. such as embedded, security and Distribution’s role in the supply One big change in distribution cloud,” he said. “We’re still doing a lot of design chain will continue to grow in and the electronics industry has work and our customers expect importance. “Distribution will been consolidation. Suppliers, meanwhile, want to us to do design here and service continue to be a key provider in broaden their customer bases into the supply chain wherever they the electronic supply chain in the “The distribution world has the “mass market of OEMs and manufacture,” he said. we’ve had to adapt our approach to ensure that we provide them Buyers can expect distributors the scale they expect from us,” to invest in services such as he said. As a result, Arrow has design, value added and cloud invested in engineering and capabilities. Digital platforms will technical resources and tools, ERP continue to proliferate to provide systems, and a broadened sales customers with a full on-line team and digital platform. product development experience. More design activity While change is inevitable in Marano said there has been a the electronics industry, there significant increase in customer are aspects of distribution that design activity as “our customers will never change. One example have continued to innovate even is relationships between during the pandemic period.” distributors and their customers “Specific market areas where we and suppliers. have seen activity is aerospace and defense, communications, In distribution, “relationships consumer and industrial,” he said. and trust matter, said Gallagher. Arrow is seeing “broad adoption “People do business with people and interest in new technologies they like and trust. Our customers such as silicon carbide, security and suppliers have choices and and cloud deployments,” said they will choose to do business Marano. with people they trust, he said. C 368145-ESNA Market Watch Ads - 2 Spreads v1 2.pdf 2 11/19/20 6:47 PM “That will never change.” M Y CM No minimum MY CY order quantities CMY K
Connectors Take a peek at 2021 connector trends 2021 could be a wild ride, so Electronic Connector Company’s president, Bernard J Gizzi, encourages connector buyers to talk to their suppliers early and often We can wrap up 2020 with Medical demand will remain company’s revenue growth many hashtags, but my high, driving a continued chokepoint because suppliers favorite is #LOCKITUP. We need for safety and reliability. let you down. Order early need to close the door on This will continue to foster and often. 2020, lock it and discard the known brands with strong key. A year ago, most of us reputations for quality. Second, spend more time would not have predicted this with your engineers to make calamity, not just for humanity Some connector sure multiple sources exist but also for our industry. manufacturers will relocate for key connectors and facilities to more reliable cable assemblies. Recently, a There have been pockets of locations, possibly closer to customer asked for help as stronger performance, such their customers. If Covid its digital signal connector as 5G rollout, defense and has done one thing, it has supplier had been bought medical equipment, along caused us to all ‘operate and its deliveries forced six Electronic Connector Company’s with signs of stronger than anywhere’. For example, a months of production delays president, Bernard J Gizzi usual design activity in upstart large connector manufacturer and unhappy customers. technologies like artificial moving final assembly intelligence and virtual/ to Mexico v Asia, avoiding Lastly, increase your augmented reality. potential tariffs and supply communications with your chain delays for finished suppliers. Share more However, most of us still products. information on legacy, got caught by material core and new product consumption reductions. Robotics, drones, 5G and development. Bring them Particularly hit hard was IoT will use more surface closer to your company’s data commercial air and industrial/ mount lightweight connectors and decision making. Ask for energy, plus small to medium as consumers require help early. sized businesses. Nevertheless, more ‘at home’ cleaning we also know our industry technology and better ‘at 2021 could be a wild ride: is poised to grow year-on- home or work’ instant goods #2021SEATBELTSFASTENED. EN connectors are similar to MIL- year. In fact, according to delivery services. Automotive DTL-38999 series III and MIL-DTL-26482 forecasting firms QLResearch electronics continues to eccoconnectors.com Series II connectors & Research Markets, the accelerate giving rise to global electronic connector technologies such as USB-C, market will grow over six FAKRA and optical style per cent CAGR from 2021 to connectors. 2026, with NA near five per cent and Asia topping 11 Mergers and acquisitions will per cent. likely double in 2021 given larger companies have been So, what trends might emerge conserving cash, while smaller given 2020’s volatility coupled competitors are searching for with 2021’s technology working capital adaption? So, what does this mean for Commercial air will bounce electronic connector buyers back, strengthening the in 2021? circular connector market and leading to faster adoption of First, get a grip on your supply newer, lighter, rugged EN style chain and forecasts because connectors thanks to easy as hard as the downturn installation, contact spacing was, it can rise just as fast. and durability. You do not want to be your 20 January 2021 • www.electronics-sourcing.com
Connectors What makes a good connector? In this article PEI-Genesis’ customer application engineer, Ammar Lokhandwalla, emphasizes the importance of involving a connector specialist early in the specification process Connectors used in aviation conductivity are vital, while cadmium coating. Recently and military applications must aluminum may better serve this has been replaced with endure extreme conditions aerospace and military a black zinc nickel plating from rapid temperature applications where weight meeting RoHS and REACH fluctuations and changes and corrosion-resistance regulations. This plating in humidity, to persistent are more important. can match cadmium and vibration, impacts and withstand over 500 hours signal interference. Ingress protection is another salt-spray. consideration. Connectors Take the industry standard designed for industrial food One mistake a manufacturer D38999. This military- and beverage manufacturing can make is considering specification connector was must be sealed against water connector design too late. originally designed in the jets to allow equipment and This can mean a product’s 1970s and is now on its third machinery washdown. This time-to-market is delayed generation. It comprises a protection extends to marine while the design is reworked. hard outer shell, neoprene applications where equipment A connector may have rubber insert (with holes for may need to be submersible constraints like a minimum the contacts) and sometimes for long periods. Thus, a wire-gauge, so it’s important a backshell for additional polycarbonate connector with to consult with your supplier shielding and durability. O-rings and grommets may be as early as possible. PEI- the right choice here. Genesis has simplified this Primary considerations by offering customers a 3D PEI-Genesis’ customer application engineer, include the materials for the Aluminum may still wire model which they can Ammar Lokhandwalla terminations and housing. require plating to improve drop into their design to Although copper offers its corrosion-resistance, check the fit. If it doesn’t, good electrical and thermal to provide further our engineering team can conductivity, aluminum is electromagnetic shielding, help with a refined or cheaper and easier to form and to meet camouflage and redesigned solution. and plate. So, copper may color needs. For example, be chosen for high-voltage some military applications use www.peigenesis.com industrial applications olive-drab, a color historically where heat dissipation and achieved with a toxic 22 January 2021 • www.electronics-sourcing.com
REPAIR PARTS LEVEL, PRESSURE & FLOW ELECTRICAL
Frequency products Supporting timing in Northern California and Northern Nevada ECS has appointed L2 Technical Sales serving the Northern California and Northern Nevada territories. L2 Technical provides engineering and design support to over 6,100 customers. ECS’ western regional sales director, Robert Strand, said: “L2 Technical Sales offers tremendous customer knowledge and Oscillators for low earth orbit support along with the resources needed to prosper in one of the most significant territories in the Bay Area. L2 Tech provides engineering support and profound market solution knowledge.” Euroquartz has announced availability of Statek’s new range of 30kRad tolerant, ultra-high shock, low phase-noise L2’s VP, Dave Henderson, added: “The technology solutions oscillators, ideal for low earth orbit applications. Capable of offered by ECS provide our customer base with timing withstanding up to 100,000g, the CXOXLPNR surface mount solutions inherently required in all facets of networking, components are housed in hermetically sealed ceramic 3.2 industrial, automotive, medical and consumer electronics/ by 2.5mm packages with operating temperature range from IoT. Their continued drive to develop innovative devices and -55 to 125oC. packages needed in today’s market demonstrates the level of resources required to support our fast-growing customer The oscillators deliver a low voltage CMOS output with base and ecosystem.” typical low phase-noise of -165dBc/Hz at 125MHz (20MHz offset) combined with typical low RMS phase jitter of 150fs ECS offers commercial, industrial and automotive quartz timing over 12kHz to 20MHz and low acceleration sensitivity. Output crystals and oscillators, ceramic resonators, SAW filters and frequencies from 20 to 125MHz are available with supply resonators and power inductors. voltage range from 1.8 to 3.3V ±10%. ecsxtal.com Ideal for low earth orbit and small satellite applications, the oscillators can be MIL screened for aerospace and defense programs such as communications/GPS and supplied for use in industrial environments. www.euroquartz.co.uk Surface mount oscillators suit telecom and avionics Q-Tech Corporation has announced availability of the QTCC578 series ultra-miniature crystal oscillators designed for high-performance, low-voltage applications with a phase noise floor of -155 dBc/Hz. They are offered in 3.3 and 2.5Vdc supply voltages. They are built using a miniature strip AT quartz crystal in a low-profile ceramic (5.0 by 7.0 by 1.5mm) hermetically sealed package with gold plated contact pads. Q-Tech’s director of sales and marketing, Scott Sentz, said: “This QTCC Series answers the demand for low phase noise in a number of commercial applications like fiber channel, telecom, SONET, Ethernet/SynchE and microprocessor clock. This compact, reliable device is also effective in mil/aero applications, such as navigation, avionics and COTS.” QTCC578 oscillators are ECCN: EAR99-classified, lead-free and RoHS compliant. Military screening per MIL-PRF-55310 is available. q-tech.com 24 January 2021 • www.electronics-sourcing.com
Digital radio benefits from new voltage- controlled oscillator Crystek’s 1925 voltage-controlled 8V, with a max current consumption of oscillator operates at 1925MHz with a 36mA. Pulling and pushing are minimized control voltage range of 0.5 to 4.5V. It to 1MHz pk-pk and 1MHz/V, respectively. features a typical phase noise of -121dBc/ Second harmonic suppression is -20dBc Hz at 10kHz offset and is designed to typical. offer excellent linearity. Output power is typically 7dBm. The device suits applications in digital radio equipment, fixed wireless access, Engineered and manufactured in the satellite communications systems and base USA, the model CVCO55CC1925-1925 stations. is packaged in the industry-standard 0.5 by 0.5in. SMD package. Input voltage is www.crystek.com Buy into MEMS performance SiTime has entered the $2b No Distributor Matches Dove’s Offering Of Authorized precision resonator market with the ApexMEMS family Frequency Control Suppliers of MHz resonators. These new devices are the third generation of SiTime’s silicon “We Invented Crystal & Oscillator Distribution” MEMS technology and are available in a variety of MHz frequencies for high volume electronics. Mobile and IoT applications such as Bluetooth hearables and wearables, high-speed connectivity interfaces, asset-tracking, as well as microcontrollers, can take advantage of the 85 per cent space savings, integration, consistent performance, resilience and reliability offered by ApexMEMS resonators. SiTime’s CEO, Rajesh Vashist, said: “SiTime continues to lead the timing industry with our unique expertise in MEMS, mixed-signal, analog and systems. By shipping almost 2 billion oscillators to date to thousands of customers, we have learned to manufacture MEMS resonators in high volume, while continuously delivering excellent quality, reliability and performance. “ApexMEMS resonators were developed to deliver breakthrough system performance and integration as shown by their usage in the SiT9501 oscillator and the Cascade ClockSoC. The SiT9501 is a game-changer for the 100-800G optical module market as it delivers the highest performance at the lowest power in the smallest package.” www.sitime.com 1-800-232-9825 • sales@doveonline.com • www.doveonline.com January 2021 25
Exclusively sponsored by 2021 outlook: the curve is key John Denslinger is a former executive VP Murata, president SyChip Wireless, and president/ CEO ECIA, the industry’s trade association. His career spans 40 years in electronics In this article, John Denslinger explores the impact of different recovery curves on 2021 growth projections for the electronics distribution and manufacturing sector P 2021 Forecast • By John Denslinger residential elections often introduce near-term forecast hospitalization rates are still climbing and that is expected to remain at uncertainty but 2020 may be one for the record books. No one emergency levels. Let’s assume everyone by now wears a mask in high could possibly script a more confusing set of circumstances as we contact areas, maintains proper social distancing, washes their hands enter 2021. Will the government be a house divided? Will there regularly and quarantines when exposed. What’s next? Once again, be financial aid for individuals caught in the Covid downdraft? Will there be Governors are taking strikingly different approaches to safeguard citizens stimulus to keep America’s small businesses operating? Will trade policies, as this new wave approaches. Some see lockdowns as the main line of tax rules and regulatory restraint abruptly change? Will Main Street ever be defense, but recent experience shows a marginal control of spread. It seems the same again? One fact is certain, the Covid hangover will continue. the only real solution is large scale vaccination, and that is well within the 2021 horizon. On the macro level, US GDP in 2021 is projected at 3.8 per cent according to a Bloomberg consensus forecast. Interestingly, Goldman Sachs is more The Covid mitigation options chosen by state Governors will impact bullish suggesting 5.3 per cent GDP. The variance is related to one’s view 2021 outlook and results. That, in my way of thinking, sets up a direct of the recovery curve. Goldman’s is based on a V-shaped recovery, the correlation between the recovery curve shape and a 2021 Q by Q forecast. I most optimistic. Others seem based on U-curve, W-curve, reverse L-curve would argue, a vaccine offers the best economic upside while persistent or and probably some other shapes I missed. Regardless the recovery shape, intermittent lockdowns the least. The relationship can be summed up in the the good news is the forecast stands robust and positive. Growth this year accompanying table. should be above average for the electronics industry. The 2021 forecast for the electronics industry should easily blow by 3.8 per While curve shape garners the most media attention, two forthcoming cent (the consensus GDP rate) given the solid demand fundamentals already actions will ultimately determine which curve prevails. Simply stated: existing in telecom, automotive and healthcare. With a V-shaped recovery, vaccines versus lockdowns. I foresee doubling the 5.3 per cent (Goldman Sachs projected GDP rate) as the real growth outlook for our industry, a strong year indeed. Depending on the source referenced, the US is now in the second or third Covid wave as we enter 2021. Cases are rising, but testing is widely The curve is key in 2021. Let’s hope multiple vaccines are FDA approved available with three day or less feedback. Death rates among all age groups soon, quickly distributed and show effectiveness among the general have steadied at near flu-like levels, but dreadfully high. Unfortunately, population. The fewer lockdowns, the better. 201208_WLS_ELECSRG_NA_Strip.indd 1 12/2/20 12:09 PM
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