Rise To Challenges Together With Hoking

Wafer shortage, natural disasters, economic laws, human error, and imbalance between supply and demand may all cause the shortage of parts. When shortages are inevitable, spot purchases are imperative. Whoever can arrange the purchase of spot stocks within acceptable cost range, can avoid greater losses as much as possible in the short term and save time for project adjustment.

Hoking purchase team is prepared! With professional vision and 15 years market sensitivity, we can help you steal a march to lock the parts in stock from worldwide, and purchase them as soon as possible to help customers win adjustment time and survive from the crisis. Meanwhile, the sales engineer team will actively look for pin to pin alternative parts, to share the demand pressure as much as possible. The shortage of parts is a challenge to both customers and us. Hoking is standing by with you to move forward at the hard time.

The incomplete record of parts shortage in the past ten years
  • 2009-2010

    The rapid reversal after the economic crisis

    Brands like Texas Instruments, Altera, a lot of parts were out of stock. This situation was covering almost all brands and lasted for more than 26 weeks. The unit price of TMS320F2812PGFA was risen from less than US$10 to more than US$200.

  • March, 2011

    The earthquake in Japan

    All Japanese brands faced the problem of materials shortage so prices of their products were skyrocketing. As an upstream country, the supply of integrated circuit materials, Japan had almost affected the delivery date of all BGA packaging products, causing prices skyrocketing.

  • Oct, 2011

    The unprecedented flood in Thailand

    Thailand is one of the important packaging countries. Unprecedented flood caused a complete collapse of various materials shortage, especially the hard drives. With the sweeping of goods by major PC manufacturers, prices were risen by more than 80%. MICROCHIP and ROHM parts were also out of stock on a large scale, and prices skyrocketed.

  • 2013

    The fire disaster of SK-HYNIX factory in WUXI

    The fire spread to the entire memory industry, causing the imbalance between the supply and demand of memory parts, so the price rose by more than 40%, which lasted until 2014.

  • 2015

    Global smartphone shipments exploded

    Sony COMS sensor chips ware out of stock, and the supply of downstream was imbalanced. Almost all camera module brands experienced an unprecedented wave of price increase due to stockout.

  • 2016-2019

    Counterattack of NOR FLASH and MLCC

    RENESAS automotive MCU were out of stock on a large scale, therefore, automakers were forced to make adjustment.
    NOR FLASH small capacity was out of stock. PC28F640, unit price $50; PC28F128 unit price was over $100. Low production of 3D NAND, reduced production of 2D NAND, and rapidly increasing demands of mobile phone, all lead to out of stock of memory parts at a large extent and prices skyrocketing.
    ST 32-bit single-chip microcomputers had also been out of stock for a long time due to the explosive growth of shared bicycles.
    MLCC created the myth of out of stock, and even caused the scandal of the auction of MLCC hosted by YaGeo.

  • 2020

    The epidemic + Fire + Global shortage of Wafer

    The epidemic broken out globally, and the materials related to ventilators had skyrocketed. Materials for forehead temperature gun were also extremely hard to find.
    ST's MCU, F0/F1 series were out of stock, and prices skyrocketed by 30%-100%.
    The AKM factory caught fire, and the price of a large number of AUDIO chips increased by dozens or even 100 times, which refreshing the historical record of shortage in the industry, and refreshing people's cognition of shortage.

What caused the stock-out trend to continue to occur?
The industrial chain of electronic components is very long, including wafer production, tapeout, packaging, testing and so on. These processes are distributed in many countries around the world, and any problem in any process will cause the delivery time to be extended, which will then break the balance of supply and demand, causing shortages and rising costs. From the incomplete statistics of shortage records in the past ten years, we can roughly analyze the reasons for the shortage.

Tension in the supply of wafer
Production shutdowns and reductions caused by natural disasters
Production shutdowns and reduction caused by economic laws
Imbalance of supply and demand affected by concentratedly explosive growth of downstream demand
Possible caused by human factors

In all, the shortage of parts means that the balance of supply and demand is broken. Doing plan of demand well, real-time grasp of market dynamics, precise attention to each material in the BOM list, a variety of replacement plans made at the beginning of the design, and timely inventory preparation when the shortage really starts in the early stage, are the issues that every end customer needs to think carefully, in order to minimize the risk of parts shortage.