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| Talking Point | Interviews | Success Stories | China Today | Import & Export | Legally Speaking | Regional Development |
Supply Shortage of Core Parts is Seen to Hit IT Industry
(Korea, Dec 2003) The electronic and IT manufacturers are seen to suffer from shortage in supply of core parts and components next year unless component production capacity will be sufficiently expanded.

According to industry and market survey institutions manufacturers of camera phones, digital TVs, and projectors already began experiencing shortage in supply of key parts and components such as charge coupled devices (CCDs), LCDs, PDP panels, and screens. Supply of razor diodes for DVD recorders and burners, as well as flexible PCBs for mobile phones and cameras are unstable as well.

Industry observers anticipate that shortage in supply of core components will hit other appliances next year, as their makers are slow in beefing up production capabilities.

Until July, it took four weeks in supplying NAND flash memories, but the delivery period was extended to as long as 18 weeks in September, according to iSupply, a market survey firm. NAND flash memory suppliers, in particular, began proportionately allocating memories to purchasers since last month.

The delivery period of transistors extended from six weeks in August to 10 weeks starting this month, while delivery period for passive components such as aluminum capacitors and oscillators is extending.

"Most parts and components makers have been less enthusiastic about expanding production lines due to slow sales during past years and predicted cycle of oversupply slated for 2006, said an expert. Supply of components, therefore, will possibly be in severe shortage next year though their makers immediately start to augment production capacities."

 
Dec 2003

This article is courtesy of Korea Trade Network (KTNET), a member of the Pan-Asian E-Commerce Alliance. KTNET was founded in Dec. 1991 to help trading companies increase their international competitiveness by the business automation system to reduce cost and time trading businesses in Korea. To reach KTNET, please go to www.ktnet.co.kr/
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