Suppliers warn of passive component challenges

Suppliers warn of passive component challenges

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By Nick Flaherty

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Distributor Farnell has substantially expanded its range of passive component stock as suppliers warn of challenges across Europe in the first half of the year.

Farnell has added passive component ranges from Yageo, Kemet, Murata, Wurth Electronik and Panasonic to meet demand with suppliers warning of potential shortages.

The passive component market is expected to continue expanding in the coming years, it says, with the rising popularity of consumer electronics, automotive electronics, and industrial automation.

“At present, there are several persistent issues impacting global supply chains: some inherent like the scale and complexity of modern components, and some are external, like supply chain and manufacturing disruptions caused by weather events, trade restrictions, and global instability,” said Murata.

“Customers and service providers still have substantial stock in their warehouses. Nevertheless, Würth Elektronik has been investing in its supply chain and stock to enable growth,” said Simon Leuz, Team Lead Distribution EMEA, Wurth Elektronik. “A strong supply chain, good availability and great partnerships will be significant to service customers when the market picks up again. We’re seeing this as a challenge as well as an opportunity. We expect the second half of 2024 to be brighter and better.”

“Farnell is well aware of the ever-evolving market demands and the need to stay ahead of the curve,” said Juergen Ruben, Director Sales DACH & Eastern Europe at Farnell. “With the growing number of applications requiring passive components, such as IIOT, robotics, EV & charging, wearables, and beyond, our expanded product range and strong linecard position us well to meet the future demand for smaller and powerful components. We understand that the market can turn quickly, and we are ready to meet the challenge head-on with our expertise and commitment to excellent service.”

“In terms of stock availability and prices the company is planning to produce generally in line with sales, or to build up inventory. Prices are declining, especially for consumer product parts for smartphones and PCs,” said Murata. “The outlook is that in addition to continued price competition in the consumer market, there will be periodic price revisions for automobiles, so Murata expects prices to continue to decline in that sector as well, especially in the EV market. However, the speed of EV body price reductions is expected to subside by the end of 2024.”

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