2024 Trends in Electronics Component Purchasing

Semiconductor Review | Friday, May 17, 2024

The demand and pricing of general-purpose semiconductors, including memory and standard logic ICs, are predicted to decrease due to a decrease in new orders compared to device shipments.

Fremont, CA: As 2024 approaches, buyers and purchasing professionals must stay updated on market trends to enhance their purchasing strategy and supply chain. To facilitate this, we have compiled a list of six purchasing trends that offer an overview of the current state and future expectations in the electronics components market.

Heightened Demand in Automotive and Industrial Applications

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The automotive and industrial sectors are experiencing a surge in demand for electronic components due to the rise in electric vehicles and advanced safety systems. The industrial sector is also experiencing increased demand for power applications. Buyers should be prepared for supply constraints, particularly in securing analog and power management components, microcontrollers, silicon carbide and galvanized materials.

Surge in Data Centre Investments Driven by AI Technologies

The AI revolution, driven by platforms like ChatGPT, drives cloud and enterprise data center operators to invest heavily in AI-accelerated servers and related equipment. This increase in server shipments is expected to boost the semiconductor market, particularly in microprocessors, memory, programmable logic, and ASIC.

Declining Demand for General Purpose Semiconductors

The demand and pricing of general-purpose semiconductors, including memory and standard logic ICs, are predicted to decrease due to a decrease in new orders compared to device shipments.

High Demand for Specific Semiconductor Components

Despite a stabilizing inventory shortage, demand for certain semiconductor components, known as "golden screws," persists. As overstock depletes, customers will likely focus on replenishing core interconnect, passive, and electromechanical components despite the high demand.

Recovery from Supply Chain Disruptions in Electronics

The electronics industry is recovering from supply chain disruptions, with increasing inventory levels of affected parts. Authorized distributors like Mouser Electronics are crucial in ensuring the components are in stock for immediate purchase, as they have been on order for a long time.

Influence of Green Tech on Electronic Component Purchasing

The electronics market is shifting towards sustainability and green technologies, with customers demanding more environmentally friendly designs. This may limit vendor options due to certification requirements, affecting component availability and project costs. However, other savings and positive environmental impacts often offset these costs.

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