Semiconductor Market Dynamics-2021

by Colin Strother | Rochester Electronics

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The semiconductor market is shifting from a period of overstocking, into elongated lead times, shortages, and potential allocation – What does this mean for you, the customer, and how can Rochester be of service during this time?

The semiconductor industry can be notoriously cyclical.  Since the founding of Rochester Electronics in 1981, we can recall approximately 19 industry cycles of varying magnitude. 

The reason for each cycle can be different.  They all tend to start abruptly and end abruptly, certainly it can feel that way.

There is an increasing tone in our industry that we are about to enter a constrained market.  More and more articles on this topic are surfacing describing issues directly affecting the automotive manufacturers, as an example. As such, we may begin to see a broader trickle-down effect as the same components often have many homes.

A key difference of this potential shift, it is not set against a booming global economy. In fact, quite the opposite.   In our current unprecedented environment, it is even more challenging to predict the outcome.  Will it be ultra-short term, quickly followed by (often-seen) overstocking, set against weak economic demand, resulting in a market decline?  Or will it be protracted and exacerbated by a strong demand profile based on global economic recovery, as a result of overcoming COVID?  

In reality, much is out of our control. However, I’m sure we are all hoping for the swift end to COVID and a return to normality including economic growth and job creation. 

Let’s talk about what we can control,

How can Rochester be of service to you during this time?

Despite being traditionally known for EOL products and solutions, today around one-third (5 Billion Devices) of our in-stock inventory is active product, as always and without deviation, factory direct, 100% authorized and guaranteed.With sales offices in each major market providing 24 hour global service and support, eCommerce via www.rocelec.com and a complimentary range of global and regional Channel Partners, Rochester is available to service your immediate need, complimented by our supply chain solutions, supporting the world’s largest portfolio of in-stock inventory available for immediate dispatch.

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