DigiKey in the news.  - Page 1
Forum section: electronics / general

author: UnijunctionTransistor
author_rank: Frequent Contributor
timestamp: April 26, 2025, 06:54:07 pm
content: Interesting article about DigiKey and the repercussions of tariffs.https://www.npr.org/2025/04/24/nx-s1-5332209/digikey-tariff-small-minnesota-town-big-company

author: alex843
author_rank: Contributor
timestamp: May 04, 2025, 04:56:05 am
content: Hopefully we can get an update on this part about duty drawbacks:Quote

author: wilfred
author_rank: Super Contributor
timestamp: May 04, 2025, 05:31:50 am
content: It was an interesting article. Not something I expect to see in the mainstream media. Sad to see their funding is withdrawn as that further reduces the likelihood of something like this getting to my attention.Being in Minnesota I was wondering even if Digi-Key moved into Canada would it help. The trouble is you just wouldn't know if it would be worth it in a years time or even a month.

author: Haenk
author_rank: Super Contributor
timestamp: May 04, 2025, 07:49:17 am
content: As stated, the obvious way is to do business "somewhere else". The true value of the company is likely their logistics software, and it should not be a problem to establish a european/asian sub-company somewhere closer to the customers, with less shipping time and less tax hurdles. I can only assume the international customers might prefer that, meaning more business.

author: tom66
author_rank: Super Contributor
timestamp: May 04, 2025, 09:47:42 am
content: It does surprise me that Digi-Key hasn't opened a European warehouse yet, but then again Mouser also don't have one, so perhaps the air shipping costs are competitive enough to land shipping in Europe that it doesn't matter.

author: Stray Electron
author_rank: Super Contributor
timestamp: May 04, 2025, 08:24:04 pm
content: Despite how much everyone is complaining about the affect of tariffs on Digikey I expect that the changing tariffs will benefit them greatly in the long run. Right now some countries are charging up to 90% tariffs on the importation of American made goods from US based companies like Digikey but soon those should be reduced to a more normal of 2 1/2 to 5% which should be a huge boost Digikey's overseas sales. Also I think that most of what Digikey currently sells are American made products so Digikey may not be as affected by the new tariff import rates as a lot people suppose.Digikey <> Walmart, Harbor Freight, Home Depot, etc. Those are the type companies that are being hurt by the new higher tariffs since they buy 90% of their products from overseas and sell 99.8% domestically within the US so they're going to have to pay the higher tariff import rates on pretty much everything that they sell.

author: SiliconWizard
author_rank: Super Contributor
timestamp: May 04, 2025, 08:31:15 pm
content: Quote from: Stray Electron on May 04, 2025, 08:24:04 pmTrue, but again, weren't semiconductors supposed to be exempted anyway?

author: Buriedcode
author_rank: Super Contributor
timestamp: May 05, 2025, 02:07:58 am
content: Quote from: SiliconWizard on May 04, 2025, 08:31:15 pmThat implies these tariffs were well thought out, or had some official, formal list of products that are or are not exempt. We all know that isn't the case - its amazing how some still seem to think "these people know what they are doing".

author: jpanhalt
author_rank: Super Contributor
timestamp: May 05, 2025, 04:49:54 am
content: The whole tariff thing is being used to negotiate a fairer* balance of trade for the US. The last thing President Trump wants to do is hurt an American business, particularly a large, well respected one in a small town.Something might be worked out with companies like Digikey who may be importing and exporting back to the same country so that tariffs are only paid based on the final sale. That is, a shipment to Taiwan of electronic parts made in Taiwan would not have a tariff assessed.*From the American POV.

author: Haenk
author_rank: Super Contributor
timestamp: May 05, 2025, 07:13:42 am
content: Quote from: Stray Electron on May 04, 2025, 08:24:04 pmBut I wonder how much of that production moves from China to the USA - I bet that it's close to 0%, due to high costs of production. So either you (as a customer) pay double - with tariffs - or three times (when/if - US-made).From a historic standpoint, nations with relaxed trade rules do much better in the long run. This does not mean market exploitation/manipulation should not be punished, irrational shotgun solutions will only do great harm to both sides.

author: tom66
author_rank: Super Contributor
timestamp: May 05, 2025, 10:07:07 am
content: Quote from: Haenk on May 05, 2025, 07:13:42 amThe fundamental issue with globalisation, whilst it increases overall economic growth, is it has a tendency to shift the good jobs into cities and in fields where you need at least a degree to get by. 56% of voters without a degree voted for the current president, these traditional working class voters aren't going to learn to code when the jobs for manufacturing have gone to China. The tariffs aren't going to fix it, but there isn't an easy answer either way that doesn't make America much poorer.

author: jpanhalt
author_rank: Super Contributor
timestamp: May 05, 2025, 11:25:57 am
content: Quote from: Haenk on May 05, 2025, 07:13:42 amAre you suggesting that China has relaxed barriers to imports? It's quite the opposite. It is difficult and expensive to sell to China due both to up front tariffs and other barriers.Quote

author: MT
author_rank: Super Contributor
timestamp: May 05, 2025, 12:05:21 pm
content: Quote from: Stray Electron on May 04, 2025, 08:24:04 pmSeriously? give us a list on "entierly made in US" thats in the DK store. E.g ADI

author: SiliconWizard
author_rank: Super Contributor
timestamp: May 05, 2025, 03:31:52 pm
content: Quote from: Buriedcode on May 05, 2025, 02:07:58 amThat's an opinion, but that doesn't answer my question.Tariffs are applied in practice according to strict written rules. They are not applied at random when a product is imported. Whether you find that those rules are stupid is another matter.So, are semiconductors currently exempted or not?

author: Haenk
author_rank: Super Contributor
timestamp: May 05, 2025, 06:31:25 pm
content: Quote from: jpanhalt on May 05, 2025, 11:25:57 amReality begs to differ. Germany tolerated (and still tolerates) a lot of unfair business practices, only to sell goods into china. So it seems like this is beneficial for both sides. But this might change shortly, as chinese economy seems to crumble. The google quote is also nonsense, the foreign companies do have domestic competition, but chinese companies still prefer buying established western products, if budget allows it.

author: Buriedcode
author_rank: Super Contributor
timestamp: May 05, 2025, 07:03:19 pm
content: Quote from: SiliconWizard on May 05, 2025, 03:31:52 pmMy point was - there are no "strict written rules". Sure,historicallythat has been the case, but its pretty clear the current aministration makes things up as they go along, unaware of they are actually doing, or the consequences. What makes you think there exists a nice neat, clear list of products that are exempt?

author: Ice-Tea
author_rank: Super Contributor
timestamp: May 05, 2025, 07:13:27 pm
content: Quote from: Stray Electron on May 04, 2025, 08:24:04 pmAs I needed to know how vulnerable my customers product was to the tariffs and Digi-Key is often the reference supplier, I checked a few BOMs for COOs (=Country of Origin).COO = USA => 0%.

author: UnijunctionTransistor
author_rank: Frequent Contributor
timestamp: May 05, 2025, 09:22:22 pm
content: What tool do you employ to determine COO?I have also checked my latest BOM, and apparently only Keystone Electronics, manufacturing electronics hardware (think battery holders, quick-fit terminals, spacers and similar hardware) still manufacture in the US, but I could be wrong.

author: thm_w
author_rank: Super Contributor
timestamp: May 05, 2025, 10:59:28 pm
content: Quote from: UnijunctionTransistor on May 05, 2025, 09:22:22 pmIf you purchase the entire BOM from digikey, mouser, etc then the invoice will list all the COO. But I don't think its easily searachable online. I see a recent purchase has some spacers from USA (Bivar).COO is a pain in the ass for us, most of the time is not findable online and I'd have to go track down the box or part and see if it says on it. It can also vary as production is moved around, but I don't many people are going to take the time and maintain COO entries..

author: Ice-Tea
author_rank: Super Contributor
timestamp: May 06, 2025, 06:37:16 am
content: Quote from: UnijunctionTransistor on May 05, 2025, 09:22:22 pmThe "Lists" feature. If you upload your BOM the resulting list will feature COO.

author: EPAIII
author_rank: Super Contributor
timestamp: May 08, 2025, 06:59:51 am
content: I remember when Digi-Key first appeared. There was always a shipping charge, but one-see, two-see customers like I was back then could get a discount depending on the size of the order. The parts gradually became ineligible for that discount with a -ND added to the DK part number. I hated that. But there was bulk pricing so I guess it all worked out in the wash.Great company and when they moved into the web era, they and McMaster showed the world just how a sales web site should work. Perhaps that is their greatest accomplishment.Quote from: UnijunctionTransistor on April 26, 2025, 06:54:07 pm

author: Analog Kid
author_rank: Super Contributor
timestamp: May 08, 2025, 07:08:57 am
content: Quote from: EPAIII on May 08, 2025, 06:59:51 amBam!That one hit me right upside the head.ND= no discount.I've seen that designator a million times on DigiKey. I had no idea.

author: pope
author_rank: Frequent Contributor
timestamp: May 08, 2025, 07:27:54 am
content: Quote from: tom66 on May 04, 2025, 09:47:42 amI believe Mouser have a warehouse somewhere in France but I'm not 100% sure.

author: Ice-Tea
author_rank: Super Contributor
timestamp: May 08, 2025, 08:26:32 am
content: Forgot the name of the system, but they seem to have part of their warehouse set up as 'not yet US' and international order are fulfilled from there as much as possible. So, in that regard, it doesn't matter if it comes from France or the US or whatever.

author: tggzzz
author_rank: Super Contributor
timestamp: May 08, 2025, 08:46:33 am
content: Quote from: Buriedcode on May 05, 2025, 02:07:58 amThey do - it is just that tariffs aren't their principal objectives. Tariffs are part of Bannon's "flooding the media", i.e. a deliberate distraction.Tariffs can be reversed instantly, but the other objectives can't.

author: Sorama
author_rank: Frequent Contributor
timestamp: May 08, 2025, 09:09:08 am
content: Quote from: tggzzz on May 08, 2025, 08:46:33 amAnd those ‘other objectives’ are ?

author: Ice-Tea
author_rank: Super Contributor
timestamp: May 08, 2025, 09:22:24 am
content: The theory is that that racist, bigotted, authoratorian, dictatorial, cold-hearted crap won't get noticed because 'the price of my Shein dress went up'.I'm not sure if I'd give him enough credit to have that much of a plan, though.

author: tggzzz
author_rank: Super Contributor
timestamp: May 08, 2025, 09:24:31 am
content: Quote from: Sorama on May 08, 2025, 09:09:08 amEntirely religious and political, based on the traditional objects of hate of libertarians and religious extremists. Search for MAGA Project 2025 to find assessments like (the BBC's) "It is a 900-page policy 'wish list', a set of proposals that would expand presidential power and impose an ultra-conservative social vision."Alternatively, watch reliable news reports to see what is being done to health rights and services, scientific research, higher education, andmuchmore.Foroneparticular part of science that will be unfamiliar to most people here, see Derek Lowe's excellenthttps://www.science.org/blogs/pipeline, and concentrate on the series marked "The Continuing Crisis". No doubt similar effects are occurring elsewhere.

author: tggzzz
author_rank: Super Contributor
timestamp: May 08, 2025, 09:25:12 am
content: Quote from: Ice-Tea on May 08, 2025, 09:22:24 amTrump no. Others, yes.

author: EPAIII
author_rank: Super Contributor
timestamp: May 08, 2025, 09:31:21 am
content: I've said it before. I'll say it again. Trump is a NEGOTIATOR! The tariffs are a NEGOTIATION TACTIC! They are not permanent.When each of those foreign countries comes to the table and negotiates a DEAL, the tariffs GO AWAY.First, you gotta get their attention! Even China can't fight it for long. Pure and simple.

author: Ice-Tea
author_rank: Super Contributor
timestamp: May 08, 2025, 09:50:55 am
content: There's two levels to my amazement at people who believe that:- Firstly, that you believe after this complete clusterfuck there was a well thought out plan- Secondly, thatifthis is a negotiating tactic, that he is negotiatingfor you.

author: tom66
author_rank: Super Contributor
timestamp: May 08, 2025, 10:28:01 am
content: Quote from: EPAIII on May 08, 2025, 09:31:21 amChina can indefinitely ignore the tariffs, since (a) it's at most 14% of their trade, (b) China thinks long term, POTUS is gone in 4 years if the constitution is to be followed and (c) they have the upper hand here with critical minerals and are not dependent upon America for most technology.I really don't think it's going to result in manufacturing coming back to the USA. Those jobs are gone, because China is so much more competitive. America needs to lower the cost of everything, from rent, to wages, to regulatory expenditure, to compete with China, and I don't think the electorate really wants to deal with those consequences. It would effectively make the whole country poorer to subside manufacturing.Still, it's good practice for the US to insist that the capability to do stuff remains onshore, like PCB manufacture. This can be done by insisting that American defence contractors use American supply chains for instance. But for consumer goods it's not going to be feasible for all but the most expensive low volume stuff.

author: Jeroen3
author_rank: Super Contributor
timestamp: May 08, 2025, 10:42:33 am
content: What people don't seem to understand is that using tariffs as extortion doesn't work in the long term.It's not the world of Raymond Reddington.What should have happened was a certain percentage of tariffs, a reasonable amount so everyone -could- pay that and it doesn't ripple the economy.That way importing becomes less competitive, either the product is more expensive, or your bottom line gets thinner.With the income from the tariffs you can fund initiatives for domestic production, eg: startup loans or less taxes.

author: watchmaker
author_rank: Unknown
timestamp: May 08, 2025, 12:56:36 pm
content: For those who believe Donald is a negotiator, here is a story published by a liberal propaganda rag:https://www.wsj.com/articles/donald-trumps-business-plan-left-a-trail-of-unpaid-bills-1465504454He is not a negotiator, he is a financial manipulator.I once hired a landscaper who BRAGGED he was defrauded by Donnie. Go figure.

author: Fflint
author_rank: Frequent Contributor
timestamp: May 08, 2025, 03:58:58 pm
content: Quote from: watchmaker on May 08, 2025, 12:56:36 pmHe (Trump) said himself he sometimes witholds payments even if the contractors do an ok job. When pressed with specific examples he gave arguments like "they wouldn't have jobs anyway without me" (the Atlantic City project) or when they kept pushing extra undocumented work worth half a million $ onto a Vegas upholstery company and that company later presented bills they tried to weasel out of it with "it's the conttactor's job to have proper receipts". The company was also in tough market position and admitted Trump and Co were their "lifeline". After litigation they got half of the extra money they wanted. Then there is the family run chandelier shop he refused to pay and many others.There are dozens such stories.On the other hand he gave 7 examples of vendors "who got paid on time and even got bonuses". Out of these only one company run by a golfing buddy and doing paving on golf courses actually got bonuses and workers got handed extra cash. Others were simply paid on time. 7 companies willing to give you a reference In 50 years in business...This presents a picture of a man that fucks with people for fun and profit whenever he thinks he can get away with it and occasionally throws someone a bone when it has to do with his hobby (golfing).There are a lot of nasty fu**ers in construction. I know I've self built my house, half a mile of roadway, and a number of other adjacent buildings from nothing (literally an empty field when I bought it with no services). For the first few months of it I was doing it remotely only visiting once every few weeks. I had quite a few contractors trying to take a piss.But at the same time one can make great deals without being a scumbag oneself. I'm quite proud that I've probably spent substantially less than half of what a "typical cost" on labour would be. But I didn't have to defraud anyone to do it. The way I've done it is I took on people that were pretty fresh in their careers or they really needed to be paid throughout the job, they needed accommodation or they needed to work non standard hours etc. It exposed me to slightly higher level of risk. No one wants to be stuck with a job half done having paid for half. It is very hard to get anyone to continue such a thing.That's where your real business skills come in. To minimise chances you'll be taken on for a ride and to cut off anyone at the slightest sign of it happening. Also to keep notice of what is being done and when even when physically far away to not allow shoddy work to be done and hidden.

author: Analog Kid
author_rank: Super Contributor
timestamp: May 08, 2025, 10:01:27 pm
content: Quote from: tom66 on May 08, 2025, 10:28:01 amA friend recently returned from a trip to China.Discussing trade and tariffs, he told me, "we're (the US) much more dependent on China than they are on us".A basic thing the Trump fanbois seem to miss.

author: alex843
author_rank: Contributor
timestamp: May 09, 2025, 10:58:55 am
content: Quote from: Stray Electron on May 04, 2025, 08:24:04 pmMost imports, including big ticket items like cars, computers and electronics have a zero tariff rate in my country, so I don't see how these changing tariffs will benefit us in the long run.Quote from: jpanhalt on May 05, 2025, 04:49:54 amI'm sure we all want a fairer system. Right now, farmers in my country who receive no subsidies, compete against US farmers who are highly subsidised.We are all looking forward to fairer trade with no subsidies or tariffs.

author: Fflint
author_rank: Frequent Contributor
timestamp: May 09, 2025, 03:02:51 pm
content: Quote from: alex843 on May 09, 2025, 10:58:55 amAs an European ... In a country that would have half of its farming gone overnight if not for subsidies (both national and EU) I think subsidies to local industry and farming have nothing to do with fairness. Also subsidies on their own are definitely not enough. It is too big of a subject to explain here.Historically we always had lots of small farms and small farms are not very profitable. A large percentage are run by people like my neighbours that have 10ha of hay and a normal job in the city. They do farming as a hobby of sorts. The subsidies they get (couple of hundred Eur per hectare per year) make them basically break even or have a tiny profit.Here a 100ha is a big farm. And 300ha+ farms are heavily regulated so they don't cause environmental issues. At the same time food prices and quality is good enough for me.I fully support a portion of my taxes supporting beneficial local farming practices so if another pandemic or war happens we have continued food security and good quality. But they must be beneficial and impossible to game.As for the Chinese. I also have zero problems with them supporting their industry or putting barriers on foreign ownership of business. What I do have a problem with is stealing IP which they did a lot of.If we are stupid enough to elect politicians that don't work to preserve our industry it is our fault, not countries that subsidise theirs. And no, tarrifs are not an answer. What is? Preferential treatment of local companies and products in government procurement (including the military). And I don't mean companies that slap "Made in X" where X is their home country on stuff they got built in China for them. No I mean true local manufacturing.Historically after the initial industrial revolution, there wasn't much industry that just "appeared" thanks to market forces. In my own country all the biggest mines, ports, steel mills and such were all created directly or heavily promoted by the state (including decades before the communism). 90% of them were sold for scrap or destroyed during a brief time of truly free market conditions that happened in early 90s when the state was essentially bankrupt and couldn't support them. Also people were sold the idea of "privatisation" that basically meant selling everything to foreign competition that immediately liquidated everything. The result? Mass unemployed and destruction of industry.In modern times take a country like Taiwan. Do you think they could become a global leader in semiconductors without their government subsidising it a lot? No way.We need smart long term policy not "I'm gonna fix it in one day" recipes.

author: SiliconWizard
author_rank: Super Contributor
timestamp: May 09, 2025, 03:17:55 pm
content: Quote from: Buriedcode on May 05, 2025, 07:03:19 pmBut that's an opinion again. You decided that the US have no rules or no law? I don't know.Maybe you can have a look there:https://hts.usitc.gov/

author: UnijunctionTransistor
author_rank: Frequent Contributor
timestamp: May 09, 2025, 03:49:10 pm
content: Quote from: EPAIII on May 08, 2025, 09:31:21 amIs that a fact? Or is that only your MAGA-influenced opinion? Answer: it is only an opinion. Other people above have explained the reasons. But the most important is that in this high stakes poker game, China is holding a better hand. Trump is bluffing, China knows that.

author: KE5FX
author_rank: Super Contributor
timestamp: May 09, 2025, 03:49:41 pm
content: Quote from: EPAIII on May 08, 2025, 09:31:21 amExactly. Just like preparing multiple variants of a proposal to help frame and anchor the discussion, taking the time to understand the stakeholders' interests, motivations, and expectations, placing a box of fresh donuts and coffee at your adversaries' end of the table, and a live grenade at your own end. They are all NEGOTIATION TACTICS.That last NEGOTIATION TACTIC will make everyone else gang up against you the moment your back is turned, of course.

author: themadhippy
author_rank: Super Contributor
timestamp: May 09, 2025, 04:03:19 pm
content: Appears trumps tariffs are really hitting china hard ,exports to the usa fell by 20% compared to a year ago, and its total exports ROSE by 8.1%.

author: UnijunctionTransistor
author_rank: Frequent Contributor
timestamp: May 09, 2025, 07:07:02 pm
content: 20% of 14% of its total exports, is exactly how much, 2.8% of China’s total exports?Yeah, they are really hurting. Big time.