Market & Supply Watch

Market & Supply Watch - May 2012

The EBV Market & Supply Watch gives you a monthly update on the general market situation. It includes a general analysis on the industry's supply situation and provides you with key figures related to lead times and price trends.

The EBV Analysis of the Market Situation

Recently Greece announced that the private investors accepted a ‘hair cut’, allowing the EU to restructure the debts and representing a great relief for the financial markets.

We saw an optimal couple of months, with book-to-bill going back to positive (in all regions including Asia, US and Pacific). Lead times are stable, but due to the fact that the overall market is becoming more and more fragmented (increasing number of derivatives, e.g. microcontrollers), it will be very difficult for suppliers to streamline their production.

For this reason, if you can foresee your future demand, we recommend to plan long-term – at least for your high runners. Lead times will increase again sooner or later (see also the ratio investments compared to fab costs).