Market Insights - Q4 2023 - New Design - Flipbook - Page 9
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General Market Insight
Circuit Protection
" Supply - Improved supply for circuit protection devices; automotive market demand slows but remains on a
growth trend, with renewable energy and AI-related applications driving growth; BB ratio is less than 1, and
factories operate at 60-80% capacity; fuse lead times average 8-18 weeks, varistor lead time is 12-18 weeks, GDT
lead times improved to 18-22 weeks, and circuit breaker supply significantly improved with lead times ranging
from 8 to 20 weeks.
" Market Dynamics - Main manufacturers pursue China+1 strategy, expanding to Mexico, Malaysia, and other
regions; Littelfuse, a global leader in circuit protection devices, extends into the power control and sensing market
through acquisitions, including C&K, RCD Technology, and Carling Technologies; Bourns, specializing in
overvoltage protection components, acquires Keko-Varicon.
" Price - Main manufacturers pursue China+1 strategy, expanding to Mexico, Malaysia, and other regions; Littelfuse,
a global leader in circuit protection devices, extends into the power control and sensing market through
acquisitions, including C&K, RCD Technology, and Carling Technologies; Bourns, specializing in overvoltage
protection components, acquires Keko-Varicon.
Resistors
" Supply - Automotive-grade parts face ongoing capacity constraints, supply allocation, and extended lead times
through 2023, with Vishay, Panasonic, and Susumu estimating a BB ratio near 1.0 for thin film resistors; KOA thin
film resistors are currently on allocation, while thick film resistors face a 15-week lead time, and Vishay's supply
improvements aid current sense, MELF, and leaded resistors; general-purpose grade resistors experience
declining supply due to reduced consumer and mobile phone markets, leading to improved BB ratios below 1.0
but increasing inventory pressures; inventory disposal is expected to slow in the second half of 2023, returning to
normal market conditions in the first half of 2024.
" Market Dynamics - Accelerating technological transformation in the power market; Vishay faces increasing
competition in resistors; Japanese suppliers neglect less profitable mature products, impacting overall demand
fulfillment; Taiwanese resistor manufacturers gain automotive AML approvals due to growing supply shortages
from traditional automotive resistor manufacturers; demand for small resistors rises with consumer demand for
compact electronic devices, driving major investments and expansion plans by 2030; large-scale investments
focus on the automotive/electric vehicle and industrial equipment markets; manufacturers invest in Mexico,
Germany, Malaysia, and Japan as part of the China+1 strategy.
" Price - Automotive-grade part prices are flat to rising, while general-purpose part prices are increasing, and
commodity thick film prices remain stable with cost-cutting strategies; distributor inventory dumping persists,
contributing to a downward price trend for general-purpose grade resistors.
Passive Commodities
Semiconductor Parts
Analog Power/Signal Chain
" Supply – Global markets face volatility with weak demand, suppliers exhibit capacity utilization rates below 80%
and BB ratios below 1.0, except for specific automotive components; lead times significantly reduced; OEM/EMS
and distribution channels conduct inventory rectification, while suppliers actively seek market share; expectations
for continued growth in the automotive and industrial equipment sectors in 2024 with a projected slowdown in
the growth rate.
" Market Dynamics - Suppliers diversify supply chains to Malaysia, Vietnam, India, and the Philippines amid the
pandemic and geopolitical conflicts, driven by customer evaluations of sources outside China; global growth in
the power semiconductor market is propelled by increased demand for automotive electrical components,
industrial automation, new consumer electronics, and renewable energy.
" Prices - Suppliers diversify supply chains to Malaysia, Vietnam, India, and the Philippines amid the pandemic and
geopolitical conflicts, driven by customer evaluations of sources outside China; global growth in the power
semiconductor market is propelled by increased demand for automotive electrical components, industrial
automation, new consumer electronics, and renewable energy.
REBOUND ELECTRONICS
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