Issue link: https://iconnect007.uberflip.com/i/1475010
18 SMT007 MAGAZINE I AUGUST 2022 it does get harder to find a direct replacement. If it's a microcontroller, for example, it's pretty much impossible. Johnson: We can read, even in the mainstream media, about semiconductors. You hear all the news about Intel and other manufactur- ers announcing new U.S. semiconductor man- ufacturing facilities, as well as globally, to cre- ate more capacity and resilience. At the same time, the projected demand curve for semi- conductors still outpaces the planned build out. Do you see it getting better, Levy? Olson: I think it's going to get better, but it might take a little while. We talk about shortages, but in the last two quarters in a row, Digi-Key has received the most product ever. So, it's not necessarily that the shortages within the mar- ket are because the manufacturer isn't making product, it's because demand is so high. What happens to demand in the next six to 12 months will determine what happens to the supply of the products. We're starting to see pockets and lead times coming down a lit- tle bit. Nothing quite substantial, but different technologies have their different challenges. We're seeing some instances where lead times are getting a little better. Johnson: So even though production hasn't ramped up yet, lead times are improving. What's your sense of why that is? Olson: roughout COVID times, there was a lot of talk about factories unable to produce because they were shut down; we aren't seeing as much of that lately. Now we're seeing facto- ries operate at a high output level. ere's just such a strong demand. Johnson: e factories are running, but do logistics and distribution continue to be an issue? Kelsey Lawrence: Coming into Digi-Key, you mean? Yes, in some cases, but I wouldn't say that we see a lot of that complaint coming from the customer. I know that, occasion- ally, we'll get requests for corrective action in which we're asked to push back to suppli- ers. During times like this, suppliers will say something like, "is is how the industry is right now. I can't give you corrective action to tell you exactly why our lead times are delayed or why the product was delayed getting to you or getting to the customer. is is how it is everywhere right now." We're hearing some of the dissatisfaction, but I think it's com- mon. People are used to seeing this every- where, so they are setting their expectations accordingly. Johnson: I would presume that you're manag- ing delays on shipping from manufacturers to you for stocking in your warehouse? Lawrence: We're at the mercy of the supplier. If that demand is too high, there's not much we can do about it. Most of the time we're in the same boat as everyone else. Levy Olson