Supply Chain Outlook For 2022

Happy New Year!

2022 promises to be another exciting year for the chip industry. Supply chain challenges persist, with no relief in sight yet. Many are predicting ongoing shortages throughout the year which will not be resolved until 2023. This all means continued long lead times, more allocation, and more price increases.

While additional capacity is being added, production equipment lead times are also long, and fab facilities can take years to build and bring online. Expect certain commodities to take much longer to recover than others, as the vast majority of new equipment is targeted for the highest performance applications, meaning legacy products like analog and microcontrollers could remain tight well into 2023.

Compounding the situation, product discontinuance notifications are proliferating as chip companies continue to consolidate and older equipment is retired to focus on newer technologies. Flip Electronics is here to help you. We likely can meet the needs for many of your obsolete semiconductor demands by supporting the specific device you need, or a close alternative, from our marquee lineup of authorized suppliers.

As challenging as the supply issues are, these are certainly the glory days for our industry as the market looks to another double-digit growth year. Good luck in 2022!