Since the pandemic began almost two years ago, the industry has endured many changes. From shortages to price increases, leaders and experts have navigated the unexpected and unforeseen when it comes to electronics and supply chains. As a new year unfolds before us, many are looking ahead to prepare for the coming months. Though the consequences of the pandemic and other supply chain disruptions are still sending ripples throughout the world, there is also much to look forward to. For the latest updates on market trends, semiconductor demand, global sales, and more, read our January update below!
The Latest Market Trends
Looking ahead to the latest market trends, we can look at what is currently happening with major semiconductor manufacturers. For Texas Instruments, a giant in the industry, things are looking up. Though shortages have been common across the board, TI came under harsh scrutiny due to its big name. The company produces products that are used in common items such as phones and cars. As demand grew last year, TI fell further and further behind due to shortages. Thankfully, shortages are expected to let up this month and supply should even out. For Infineon, some report that orders need to be placed up to a year in advance! Delivery time for certain products varies from 36 to 52 weeks. Long delivery times are plaguing other companies as well.
Is A Price Hike Coming in 2022?
Expected by most in this market, price increases will continue in 2022. Shortages, which will continue in some capacity this year, are partly responsible for the sharp price jump. Taiwan Semiconductor Manufacturing Co. alerted their customers of the price increases, set to take place the beginning of this year, in 2021. However, TSMC is not the only company with price increases. Other companies such as UMC, Samsung, and PSMC are also raising prices. Many prices have been increasing since 2020, due to the supply shortages onset by the beginning of the pandemic. Though the price increase comes as a surprise to some, it does have its benefits. Higher prices should lead to a decrease in “double-booking”.
Semiconductor sales are set to grow in 2022
While the industry has certainly met many obstacles recently, there’s no denying the positive impact of an increase in sales. As a first, sales are predicted to increase by 9%. This will lead to sales crossing $600 billion, a major milestone. This is in addition to the growth that already happened in 2021. Though the major sales are certainly a win, the industry still faces major challenges in this market, including demand normalization, continued supply chain disruptions, and more.
There’s no doubt that 2022 will be another wild ride for the semiconductor industry. However, industry leaders are feeling optimistic about what’s to come. With new experiences and tools under their belts, many feel confident about taking on any hurdles this year has to offer through continuous market changes. As we continue in this unprecedented time, Velocity Electronics is here to help you navigate. From managing excess and obsolete components to helping you secure your supply chain, we enjoy partnering with businesses to get the most out of any market conditions. Ready to take a next step? Head on over to our RFQ page today!