Distributor warns of chip resistor shortage

May 15, 2018 // By Nick Flaherty
Distributor warns of chip resistor shortage
UK distributor Anglia Components is warning customers that global demand for chip resistors is massively outstripping supply, and shortages and price increases are already heavily impacting the supply chain.

The demand for chip resistors has risen exponentially due to the increase in electronics content in Automotive, Industrial and Consumer applications and the warning comes days after manufacturer Chemigraphic said lead times for multilayer ceramic chip capacitors and surface-mount resistors were almost a year. With material prices are also on the rise driven by the increase in demand, chip resistors will remain in short supply and prices will continue increasing in the short to medium term.

“We foresaw that a shortage in chip resistors was coming about six months ago and invested heavily in inventory in order to protect our customers," said Steve Rawlins, CEO at Anglia. "It’s ironic that a chip resistor might be one of the cheapest items on the BOM, but without it, you can be looking at thousands in lost revenue if you are not able to complete the assembly of the end product it is going into.  We are keen to inform our loyal customers and the industry in general, that now is the time to take action to ensure your production is not disrupted.”


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