Author Topic: Microchip letter to customers  (Read 5802 times)

0 Members and 1 Guest are viewing this topic.

Online tszabooTopic starter

  • Super Contributor
  • ***
  • Posts: 7308
  • Country: nl
  • Current job: ATEX product design
Microchip letter to customers
« on: April 05, 2017, 01:26:22 pm »
http://www.microchip.com/docs/default-source/announcements-documents/letter-to-our-cliets.pdf?sfvrsn=2

Quote
April 4, 2017
Dear Clients,
Over the years we have made you aware of important changes we see in the overall semiconductor business environment. This is
another one of those times. We serve one of the broadest customer bases in the industry, consisting of some 115,000+ customers. We
want all of our customers to be aware of the changes we see in the industry. We believe posting this letter on the web is the best way
for us to communicate this change broadly.
From our perspective, there are a growing number of shifts taking place in the current supply and demand balance in the
semiconductor market. Due to relatively low single digit percentage growth rate in the industry in the last decade, the industry
capacity has not grown much. With current semiconductor demand recently increasing, the industry is starting to see lengthening lead
times. Demand in some key segments of the business is growing fast enough that some of the semiconductor suppliers have
announced limited availability in addition to longer lead times. At Microchip, we experienced extremely strong bookings in the March
quarter just completed. We are currently experiencing capacity challenges in fab, probe, assembly and test, across the entire supply
chain.
These challenges are more acute on the products that originated from our Atmel acquisition. To date, products that originated from
core Microchip have fewer challenges. Atmel originated business has significantly outgrown the capacity plan in place at the time of
the acquisition. Though we have made substantial investment in capacity, the industry wide constraints across the supply chain are
providing challenges.
Where necessary, our local sales teams will be contacting you to make sure we fully understand your requirements and can
communicate effectively with you regarding availability of the specific parts for your needs.
Regards,
Steve Sanghi Ganesh Moorthy
CEO President / COO

I think this is the first time, I'm seeing a semi manufacturer finally admit the production shortage. I've asked a quote recently for some TVS diodes, you know, general purpose ones, SMA12CA from a leading manufacturer, and I got 18 weeks lead time, 0 stock. 18 weeks! For something, that supposed to be "On stock, 10000000000 pieces". And in the same quote, there were simple transistors, which had 22 weeks leadtime. I ended up searching for replacement parts for octocouplers and TVS diodes...
Of course this has nothing to do with Microchip. I'm just wondering, if there should be a semiconductor leadtime wall of shame. Jelly bean parts seems to take forever to get. I mean, if I cannot get something from Digikey, I end up 6 months delay or re-design, or BOM change? For a dual transistor?
Do you guys have more info or insight on what is going on?
 

Online Jeroen3

  • Super Contributor
  • ***
  • Posts: 4068
  • Country: nl
  • Embedded Engineer
    • jeroen3.nl
Re: Microchip letter to customers
« Reply #1 on: April 05, 2017, 01:44:28 pm »
IIRC Atmel was always overbooked. They've just inherited this.
 

Online JPortici

  • Super Contributor
  • ***
  • Posts: 3452
  • Country: it
Re: Microchip letter to customers
« Reply #2 on: April 05, 2017, 02:29:37 pm »
i've recently compiled a BOM. everything that was 8-10 weeks (including microchip) increased to at least 14.
mid january we received a mail of the same tone from one of our assembly fabs that basically asked us to plan production for at least the end of the year because of components and copper (!!!) shortages.

but the scariest thing of all is that in the last months some transceivers from microchip became NRND and 6 months later.. disappeared. scary, coming from them.
 

Offline Vtile

  • Super Contributor
  • ***
  • Posts: 1144
  • Country: fi
  • Ingineer
Re: Microchip letter to customers
« Reply #3 on: April 05, 2017, 03:51:29 pm »
Too few players left on the business compared the past times, when there were handfull of everything in each town?
 

Offline Kjelt

  • Super Contributor
  • ***
  • Posts: 6459
  • Country: nl
Re: Microchip letter to customers
« Reply #4 on: April 05, 2017, 03:57:37 pm »
Microchip never could deliver huge quantities of new products, the reason they were never a preferred supplier. Atmel was reasonably cheap in the past but since MC has taken over the negotiations went sour. Now I know why, they just don't have enough productcapacity. IMO This is a serious warning for new designs! It does not reflect or has any meaning for other manufacturers, they pretend it is over the entire board, so lets see if ST, NXP and others also going to issue warnings or delays, I doubt it.
 

Offline Cerebus

  • Super Contributor
  • ***
  • Posts: 10576
  • Country: gb
Re: Microchip letter to customers
« Reply #5 on: April 05, 2017, 04:31:39 pm »
... I ended up searching for replacement parts for octocouplers and TVS diodes...

Are you trying to interface to S.Q.U.I.D.s?

Sorry, I'll get my coat...
Anybody got a syringe I can use to squeeze the magic smoke back into this?
 
The following users thanked this post: PointyOintment, JPortici

Offline Bud

  • Super Contributor
  • ***
  • Posts: 6877
  • Country: ca
Re: Microchip letter to customers
« Reply #6 on: April 05, 2017, 05:27:55 pm »
Wasn't it a polite way of saying "We are looking at dropping Atmel line"  ?
Facebook-free life and Rigol-free shack.
 

Online JPortici

  • Super Contributor
  • ***
  • Posts: 3452
  • Country: it
Re: Microchip letter to customers
« Reply #7 on: April 05, 2017, 06:12:21 pm »
Why would they drop the arm (some ATSAMs are very interesting parts) and the arduino crowd?
 

Offline retrolefty

  • Super Contributor
  • ***
  • Posts: 1648
  • Country: us
  • measurement changes behavior
Re: Microchip letter to customers
« Reply #8 on: April 05, 2017, 06:12:40 pm »
Wasn't it a polite way of saying "We are looking at dropping Atmel line"  ?

 That is my first impression also. If so, I wonder why MC bought Atmel, just to have inside
path at buying/converting their customer base? If so that is a pretty risky bet because obviously
ARM based microcontrollers are already the path forward with no shortage of suppiers.

 

Offline KE5FX

  • Super Contributor
  • ***
  • Posts: 1878
  • Country: us
    • KE5FX.COM
Re: Microchip letter to customers
« Reply #9 on: April 05, 2017, 06:54:02 pm »
Wasn't it a polite way of saying "We are looking at dropping Atmel line"  ?

Where do you get that from "Atmel-originated business has significantly outgrown the capacity plan in place at the time of
the acquisition?"
 

Offline Bud

  • Super Contributor
  • ***
  • Posts: 6877
  • Country: ca
Re: Microchip letter to customers
« Reply #10 on: April 05, 2017, 07:30:57 pm »
I get it from mere fact of publishing a message that states a challenge but does not offer action steps to resolve it. Moreover, advantage of Microchip core product availability was favourably emphasised.
Facebook-free life and Rigol-free shack.
 

Online Jeroen3

  • Super Contributor
  • ***
  • Posts: 4068
  • Country: nl
  • Embedded Engineer
    • jeroen3.nl
Re: Microchip letter to customers
« Reply #11 on: April 05, 2017, 07:35:23 pm »
Did Atmel own any fabs at the point of merge?

There is obviously the merge of NXP and Freescale and the split of NXP and Nexperia that has thrown up some dust in semiconductor fab world.
 

Offline brucehoult

  • Super Contributor
  • ***
  • Posts: 4002
  • Country: nz
Re: Microchip letter to customers
« Reply #12 on: April 05, 2017, 09:40:18 pm »
Wasn't it a polite way of saying "We are looking at dropping Atmel line"  ?

Riiiight. "We'll stop making it because too many people want to buy it!"
 

Online tszabooTopic starter

  • Super Contributor
  • ***
  • Posts: 7308
  • Country: nl
  • Current job: ATEX product design
Re: Microchip letter to customers
« Reply #13 on: April 06, 2017, 08:38:19 am »
Wasn't it a polite way of saying "We are looking at dropping Atmel line"  ?
I dont think so. While people think the Arduino stuff is relevant, it is probably much less than a million mega328. All in all, it is nothing compared to the 6 billion chips atmel sold.

I get it from mere fact of publishing a message that states a challenge but does not offer action steps to resolve it. Moreover, advantage of Microchip core product availability was favourably emphasised.
While I did not like their 8 bit products, I have to agree, it was always available to order from them, if you wanted to buy less than a reel.
 

Online tszabooTopic starter

  • Super Contributor
  • ***
  • Posts: 7308
  • Country: nl
  • Current job: ATEX product design
Re: Microchip letter to customers
« Reply #14 on: April 06, 2017, 08:58:38 am »
Wait, I'll just drop this here:
ATTINY4-TS8RTR-ND
Part Status: End of Life; Last Time Buy Date: 06-05-2017. Minimums may apply.
ATTINY10-TS8RTR-ND
Part Status: End of Life; Last Time Buy Date: 06-05-2017. Minimums may apply.
ATTINY5-TSHRTR-ND
Part Status: End of Life; Last Time Buy Date: 06-05-2017. Minimums may apply.

So they are wiping out the low pin count attiny micros.  >:(

About 1400 devices are now:
"Discontinued at Digi-Key", but they are avaliable with a slightly different order code.

By the looks of it some C level person at microchip thinks there are too many order codes for atmel micros. I have to agree.
 

Offline Dave

  • Super Contributor
  • ***
  • Posts: 1352
  • Country: si
  • I like to measure things.
Re: Microchip letter to customers
« Reply #15 on: April 06, 2017, 12:46:09 pm »
There is obviously the merge of NXP and Freescale and the split of NXP and Nexperia that has thrown up some dust in semiconductor fab world.
If there is one thing you don't want in the semiconductor business, it's dust being thrown up in the air. I hear it leads to longer lead times. :-DD
<fellbuendel> it's arduino, you're not supposed to know anything about what you're doing
<fellbuendel> if you knew, you wouldn't be using it
 

Offline Dielectric

  • Regular Contributor
  • *
  • Posts: 127
  • Country: 00
Re: Microchip letter to customers
« Reply #16 on: April 06, 2017, 12:46:26 pm »
There are actually industry-wide shortages at the moment, as noted above.  Capacitors are constrained, TFT-LCD glass is constrained mainly at less-than-TV sized panels, I think I heard that optos are tight as of Monday.  There's some tightness in DRAM and NAND flash, too. 

I wouldn't read much into the Atmel shortage at all.  It's pretty normal, if there's a downturn the factories get shut down, sold, etc, then we come up with a bunch of new products and there's a lag catching up.  I guess it keeps the component engineers and buyers busy, if nothing else.  No manufacturer or supply chain partner wants this, as it amounts to orders that can't be filled and it puts them in a weaker position when the buyers find alternate parts.  The DRAM guys are cool with it because they are a bunch of pirates and jack up their pricing during allocation periods.   ;D
 

Offline Scrts

  • Frequent Contributor
  • **
  • Posts: 797
  • Country: lt
Re: Microchip letter to customers
« Reply #17 on: April 06, 2017, 02:46:42 pm »
We've got same issues with majority of the passive suppliers too.
 

Online RoGeorge

  • Super Contributor
  • ***
  • Posts: 6146
  • Country: ro
Re: Microchip letter to customers
« Reply #18 on: April 06, 2017, 03:06:24 pm »
I am not a fan of conspiracies, but could this be a planned scarcity after the wave of consolidations in the high tech industry, in order to increase the prices?

Offline FrankBuss

  • Supporter
  • ****
  • Posts: 2365
  • Country: de
    • Frank Buss
Re: Microchip letter to customers
« Reply #19 on: April 06, 2017, 04:37:09 pm »
Wait, I'll just drop this here:
ATTINY4-TS8RTR-ND
Part Status: End of Life; Last Time Buy Date: 06-05-2017. Minimums may apply.
ATTINY10-TS8RTR-ND
Part Status: End of Life; Last Time Buy Date: 06-05-2017. Minimums may apply.
ATTINY5-TSHRTR-ND
Part Status: End of Life; Last Time Buy Date: 06-05-2017. Minimums may apply.

So they are wiping out the low pin count attiny micros.  >:(

About 1400 devices are now:
"Discontinued at Digi-Key", but they are avaliable with a slightly different order code.

It might make sense for Microchip to discontinue the ATinys, because I guess you could find a low-end PIC for each ATiny, with the same features.
So Long, and Thanks for All the Fish
Electronics, hiking, retro-computing, electronic music etc.: https://www.youtube.com/c/FrankBussProgrammer
 

Online tszabooTopic starter

  • Super Contributor
  • ***
  • Posts: 7308
  • Country: nl
  • Current job: ATEX product design
Re: Microchip letter to customers
« Reply #20 on: April 06, 2017, 04:40:47 pm »
It might make sense for Microchip to discontinue the ATinys, because I guess you could find a low-end PIC for each ATiny, with the same features.
Update:
I've checked with our supplier. There is no plan to obsolete any ATtiny now. It must be a Digi-key thing, like renaming or something like that.
 

Offline Cerebus

  • Super Contributor
  • ***
  • Posts: 10576
  • Country: gb
Re: Microchip letter to customers
« Reply #21 on: April 06, 2017, 04:45:28 pm »
The DRAM guys are cool with it because they are a bunch of pirates and jack up their pricing during allocation periods.

That's a horrible libel, pirates have a code of honour!  :)
Anybody got a syringe I can use to squeeze the magic smoke back into this?
 
The following users thanked this post: Dielectric

Offline vodka

  • Frequent Contributor
  • **
  • Posts: 518
  • Country: es
Re: Microchip letter to customers
« Reply #22 on: April 06, 2017, 05:43:21 pm »
I am not a fan of conspiracies, but could this be a planned scarcity after the wave of consolidations in the high tech industry, in order to increase the prices?

That are not conspirations, that is the own nature of the corporations. More when they join or buy among them.
You remember that the lions don't conspiracy versus gazelles
 
 

Offline marshallh

  • Supporter
  • ****
  • Posts: 1462
  • Country: us
    • retroactive
Re: Microchip letter to customers
« Reply #23 on: April 07, 2017, 03:22:49 pm »
The level of consolidation and parts EOL/production shortages seem to have increased sharply in the past 5 years.
Verilog tips
BGA soldering intro

11:37 <@ktemkin> c4757p: marshall has transcended communications media
11:37 <@ktemkin> He speaks protocols directly.
 

Offline Cerebus

  • Super Contributor
  • ***
  • Posts: 10576
  • Country: gb
Re: Microchip letter to customers
« Reply #24 on: April 07, 2017, 04:12:22 pm »
The level of consolidation and parts EOL/production shortages seem to have increased sharply in the past 5 years.

Yes, and markedly so in the last 12 months. As the last few semiconductor takeovers/mergers settle down, expect to see some fabs closed in 'rationalizations' and parts get EOL'd as the process they used becomes unavailable. I suspect the most likely candidates are bipolar 'high-voltage'* ICs especially the ones fabbed on large feature size processes and discrete bipolar transistors and JFETs. If this matters to you, it might be time to check that you're on your favourite manufacturers' mailing lists for 'last change to buy' notices and the like.

* Am I not the only one who finds 'high-voltage' an awkward description for parts that only use 30V or thereabouts?
Anybody got a syringe I can use to squeeze the magic smoke back into this?
 


Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf