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iSuppli Expert Warns Buyers of Passive Components to Watch the Supply Chain for Signals of Coming Shortages.

Business Editors & High Tech Writers

EL SEGUNDO, Calif.--(BUSINESS WIRE)--April 10, 2001

While buyers of passive components have been enjoying stable or falling prices and widespread availability for all types of capacitors and resistors, the latest forecasts from iSuppli Corporation's Market Intelligence Group indicated that buyers should be closely monitoring several potential choke points in the supply chain.

In addition, now is the time to evaluate suppliers and make strategic decisions to ensure long-term supply continuity.

These are just some of the observations in iSuppli's "Capacitor and Resistor Market Outlook" report, the definitive procurement reference for the passives market and a `must buy' for every procurement team in the electronics industry.

Eric Pratt, director of Market Intelligence Services for the company and author of the report elaborated, "Major capacity increases by manufacturers of passive devices, coupled with an overall slowdown in demand, has created an ideal climate for buyers of capacitors and resistors.

"This buyers' market should continue for the next few quarters, but fundamental choke points still exist in the passive components supply chain. These choke points could lead to rapidly developing shortages for several components and a return to allocation, which plagued electronics markets as recently as last year.

"Cost issues and shortages for raw materials such as palladium, tantalum powder and ruthenium, used in building capacitors and resistors, still have the potential to disrupt the passives marketplace," Pratt explained.

"Buyers of passive components will be well served to closely monitor availability and pricing of these commodities to better plan long terms procurement strategies."

This 57-page iSuppli report is the most comprehensive resource of its kind available on the market. In addition to a detailed analysis of the passives manufacturing supply chain, the report provides a complete analysis of supply and demand for capacitors and resistors through 2003, with detailed forecasts by major device types including projected selling prices.

In depth supplier profiles and market share statistics are also provided to assist buyers in identifying and qualifying new sources for procurement. Emerging technologies are discussed, to assist procurement professionals in evaluating trends in component downsizing, integration and alternative sourcing options.

The iSuppli report titled, "Capacitor and Resistor Market Outlook," can be purchased from the iSuppli Web site at www.isuppli.com.

iSuppli Corporation and its wholly owned subsidiary, Stanford Resources, offer a wide range of Market Intelligence Services that provide buyers and sellers of electronic components with the timely information needed to make strategic component procurement decisions. iSuppli also offers the first true peer-to-peer, Web-enabled supply network that allows buyers and suppliers of electronic components to work profitably together to reduce the overall cost of acquisition, improve continuity of supply, and simplify supply chain processes. Unlike online exchanges or auction sites, iSuppli provides complete procurement and supply chain management services -- from strategic procurement to inventory reduction to worldwide delivery -- allowing users to better focus their own resources.

These services have demonstrated the ability to reduce the cost of acquisition by 6% to 10%, reduce cycle times by 5% to 20%, increase fill rates as much as 30%, reduce shipment errors by up to 25%, improve bill-of-materials accuracy to 99.9%, and increase planner productivity by as much as 25%. For more information visit www.isuppli.com.
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Publication:Business Wire
Date:Apr 10, 2001
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