Supply disruptions from the March earthquake in Japan are still
rippling through the market for analog devices used in a wide range
of electronics, according to a report from IHS iSuppli (IHS).
Prices for the major types of analog integrated circuits are set
to rise about 2% in the third quarter before slowing to 0.6% across
the board in the fourth quarter, the market researcher said
Thursday. Conditions should return to normal seasonal patterns by
the first quarter of 2012, IHS said, with prices flattening or
declining.
Analog circuits are vital to many electronics, especially for
the power management devices used in everything from cell phones to
televisions. The huge volumes of analog devices shipped makes them
a bellwether for the general electronics industry.
"Nearly four months after the earthquake, the Japan disaster
continues to drive up pricing for general-purpose analog
components, and will continue to influence availability and costs
for these parts through the end of the third quarter," analyst Rick
Pierson said.
The supply shortfalls stemmed from damage at Japanese factories
run by Texas Instruments (TXN) and Renesas Electronics (6723.TO).
Texas Instruments is the world's largest supplier of
general-purpose analog integrated circuits, with a 21% market share
in 2010.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com