Commodity Supply Tightness, Cost Inflation Negatively Impact Electronics Supply Chains

New data from Supplyframe paints a grim picture of current and expected conditions in the electronics supply chain, where commodity supply tightness and cost inflation are impacting most inputs across categories.

“Geopolitical uncertainty and wide-ranging impacts from the Russian invasion of Ukraine, persistent global inflation and recurring COVID-19 outbreaks continue to wreak havoc and test beleaguered industry supply chains,” says Supplyframe CEO and founder Steve Flagg.

This includes shortages of resin feedstocks and additives, increasing costs for fuels and metals and challenges related to the affordability and availability of labor and freight capacity.

From Supplyframe:

• Commodity IQ expects 85% of all pricing dimensions to increase and 83% of all lead time dimensions to extend this quarter. 
• Through the first quarter of 2023, more than 70% of lead times are forecast to increase. During that timeframe, analog, complex semiconductor (ASICs, MCUs, MPUs, PLDs), flash memory, non-ceramic capacitor, resistor and standard logic devices are forecast to rise in price with very limited exceptions.