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Propeller lead times to increase (for large orders) — Parallax Forums

Propeller lead times to increase (for large orders)

Ken GraceyKen Gracey Posts: 7,401
edited 2010-02-12 11:05 in Propeller 1
Hey all,

Parallax normally has an eight-week lead time on wafers from the Propeller foundry in Europe. However, we're being told that our lead times will increase to 16 weeks due to higher demand at the foundry from all customers.

We have significant volumes of P8X32As in the queue already, but we're projecting a shortage at some point in the future.

Low-volume orders (<500 units) should be able to be filled upon order. We may introduce a lead time for larger orders up to 10K, and will certainly have a lead time for 10K units on up. If this gets formalized by our Sales department you will see a notice on each Propeller page. Most likely affected will be the QFP.

If you speak with many Purchasing Managers you will notice that the inventory reduction that started with the recession has created a problem today, so this isn't all too unusual. Those who browse Digi-Key inventory levels may see the same thing right now - finding your preferred components may be a bit more difficult. Although we are ramping up the volume of Props that we stock, we're still impacted by other foundry traffic that was delayed as long as possible.

Thanks,

Ken Gracey
Parallax Inc.

Comments

  • MicrocontrolledMicrocontrolled Posts: 2,461
    edited 2010-02-11 17:58
    As long as it isn't another DIP shortage.....

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  • jazzedjazzed Posts: 11,803
    edited 2010-02-11 18:00
    If it is truly higher demand, the hint of global semiconductor economic improvement is certainly appreciated [noparse]:)[/noparse]
    So, are smaller customers being delayed out so the big boys can get what they want? Money talks, others walk.
  • RaymanRayman Posts: 14,877
    edited 2010-02-11 18:12
    I wonder who's ordering >10k Propeller chips...

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  • Ken GraceyKen Gracey Posts: 7,401
    edited 2010-02-11 18:15
    @jazzed: indeed, we're a small player and the big boys run the show when it comes to getting what they want. We often have little leverage beyond relationships but longevity always gives us more credibility. Don't get me started. As far as our customers are concerned, we won't sacrifice 100 small customers for one big one. We'll hold inventory for small customers and try to put the bigger ones on lead times.

    @microcontrolled, I don't want a DIP shortage either. We've got a three-month supply at current usage and more in the queue so it's not likely we'll be out of stock. . . but it's also possible.

    Ken Gracey
    Parallax Inc.
  • Ken GraceyKen Gracey Posts: 7,401
    edited 2010-02-11 18:18
    @Rayman: larger volume customers with applications in renewable energy and communication products with video user interface. And a variety of products less than 1K units. The low-volume products are quite specialized, expensive and often newer technologies. Some of the applications truly demand the Propeller; others are using it because of support, ease of programming and as a result of these helpful forums (you).

    Ken Gracey
    Parallax Inc.
  • Cluso99Cluso99 Posts: 18,069
    edited 2010-02-11 18:33
    Thanks Ken.

    For those that do not know, this is cyclic event and it has been a while since the last one. In the 80's & 90's it used to be a 3-4 year event. It is nothing in the semiconductor industry to see lead times blow out to 12 months for some items. This will just be the start, and you will see some prices begin to take a hike as shortages start.

    To further exagerate the problem, the bandits start buying up stocks when they become short, to sell at higher prices on the black market when the shortages become accute. The next type of bandit buys blank chips and screens someone's logo on them and sells them into the chain.

    Some large companies try to overcome this by at least buying all the cheaper components - you don't want to not be able to produce a product because you don't have a resistor array. However, more expensive chips are not so easily stocked because of inventory cost.

    Usually the PC memory chips are the most effected by this trend.

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  • Phil Pilgrim (PhiPi)Phil Pilgrim (PhiPi) Posts: 23,514
    edited 2010-02-11 18:46
    Cluso99 said...
    To further exagerate the problem, the bandits start buying up stocks when they become short, to sell at higher prices on the black market when the shortages become accute.
    That's no lie! When inventories get short, the rats come out of the woodwork. I'm already getting cold sales calls from these gray marketeers, trying to sell me stuff I might have a hard time finding elsewhere. Even if their parts are legit, their exorbitant prices can blow a BOM out of the water and sink any profits you were hoping for. The mid '80s were the worst. I hope we don't see a situation that bad recurring on this cycle.

    -Phil
  • jazzedjazzed Posts: 11,803
    edited 2010-02-11 19:11
    Cluso99 said...
    The next type of bandit buys blank chips and screens someone's logo on them and sells them into the chain.
    Some SRAM were like this around 1996. We found out that we had a diagnostic that tests only bus capacitance.
    mad.gif
  • heaterheater Posts: 3,370
    edited 2010-02-11 20:40
    Ken: Any chance of reminding ELFA in Scandinavia that, as of this morning, they have only one DIP Prop left and they should get a few tubes more?

    Whilst you're at it you could also remind them to adjust the price down in line with the reduction from Parallax last year[noparse]:)[/noparse]

    On the plus side it's good to see they have Prop kits and a Boe bot displayed prominently along with PIC and AVR kits behind the counter in the Helsinki store.

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  • SapiehaSapieha Posts: 2,964
    edited 2010-02-11 21:43
    Hi heater.

    Look at this Shop.
    http://www.lawicel-shop.se/shop/.

    Them have more and price is ok.

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    Sapieha
  • heaterheater Posts: 3,370
    edited 2010-02-11 21:56
    Sapieha: Excellent, thank you.

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  • Toby SeckshundToby Seckshund Posts: 2,027
    edited 2010-02-12 11:05
    Alright, I'll take the hint. A few more in the drawer.

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