By Christina Nickolas
According to the IHS iSuppli Components Price Tracker report, pricing for widely used electronic components including capacitors, crystals, filters, magnetics, oscillators and printed circuit boards (PCBs) all are set to decline at above-average rates in the third and fourth quarters.
(click on graph for larger view)
“Electronic component pricing typically is stronger in the second half of the year, as suppliers strategically boost prices to take advantage of strong demand during the back-to-school and holiday build seasons,” said Rick Pierson, principal analyst, semiconductor pricing, for IHS. “However, prices are weak this year because of a global economic malaise due to the crisis in Europe and a rapid slowdown of manufacturing in China. Although overall semiconductor revenue is expected to rise in the second half, pricing for many specific components is falling at a faster rate in reaction to poor economic news.”
As shown in the above graph, pricing for voltage-controlled crystal oscillator (VCXO) oscillators is set to decline by 2.0% in the third quarter, by 2.4% in the fourth quarter, and by 2.6%in the first quarter of 2013. This represents a 180 shift of what was predicted earlier in the year.
According to IHS this pricing decline could also be seen as a buying opportunity, especially for those companies that were not planning on buying now, since it is predicted that prices for capacitors, crystals, filters, magnetics, PCBs and oscillators all are expected to increase during the second quarter of 2013.
The good news is that unlike the above, the global semiconductor industry is set for stronger growth in the second half compared to the first. After declining by 3.3% in the first quarter and increasing by 5.4% in the second quarter, global semiconductor revenue is expected to increase by 8.7% sequentially in the third quarter, before settling down to 1.0% growth in the fourth quarter.
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