Microchip letter to customers - Page 1
Forum section: electronics / general

author: tszaboo
author_rank: Super Contributor
timestamp: April 05, 2017, 01:26:22 pm
content: http://www.microchip.com/docs/default-source/announcements-documents/letter-to-our-cliets.pdf?sfvrsn=2QuoteI 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?

author: Jeroen3
author_rank: Super Contributor
timestamp: April 05, 2017, 01:44:28 pm
content: IIRC Atmel was always overbooked. They've just inherited this.

author: JPortici
author_rank: Super Contributor
timestamp: April 05, 2017, 02:29:37 pm
content: 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.

author: Vtile
author_rank: Super Contributor
timestamp: April 05, 2017, 03:51:29 pm
content: Too few players left on the business compared the past times, when there were handfull of everything in each town?

author: Kjelt
author_rank: Super Contributor
timestamp: April 05, 2017, 03:57:37 pm
content: 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.

author: Cerebus
author_rank: Super Contributor
timestamp: April 05, 2017, 04:31:39 pm
content: Quote from: NANDBlog on April 05, 2017, 01:26:22 pmAre you trying to interface to S.Q.U.I.D.s?Sorry, I'll get my coat...

author: Bud
author_rank: Super Contributor
timestamp: April 05, 2017, 05:27:55 pm
content: Wasn't it a polite way of saying "We are looking at dropping Atmel line" ?

author: JPortici
author_rank: Super Contributor
timestamp: April 05, 2017, 06:12:21 pm
content: Why would they drop the arm (some ATSAMs are very interesting parts) and the arduino crowd?

author: retrolefty
author_rank: Super Contributor
timestamp: April 05, 2017, 06:12:40 pm
content: Quote from: Bud on April 05, 2017, 05:27:55 pmThat is my first impression also. If so, I wonder why MC bought Atmel, just to have insidepath at buying/converting their customer base? If so that is a pretty risky bet because obviouslyARM based microcontrollers are already the path forward with no shortage of suppiers.

author: KE5FX
author_rank: Super Contributor
timestamp: April 05, 2017, 06:54:02 pm
content: Quote from: Bud on April 05, 2017, 05:27:55 pmWhere do you get that from "Atmel-originated business has significantly outgrown the capacity plan in place at the time ofthe acquisition?"

author: Bud
author_rank: Super Contributor
timestamp: April 05, 2017, 07:30:57 pm
content: 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.

author: Jeroen3
author_rank: Super Contributor
timestamp: April 05, 2017, 07:35:23 pm
content: 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.

author: brucehoult
author_rank: Super Contributor
timestamp: April 05, 2017, 09:40:18 pm
content: Quote from: Bud on April 05, 2017, 05:27:55 pmRiiiight. "We'll stop making it because too many people want to buy it!"

author: tszaboo
author_rank: Super Contributor
timestamp: April 06, 2017, 08:38:19 am
content: Quote from: Bud on April 05, 2017, 05:27:55 pmI 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.Quote from: Bud on April 05, 2017, 07:30:57 pmWhile 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.

author: tszaboo
author_rank: Super Contributor
timestamp: April 06, 2017, 08:58:38 am
content: Wait, I'll just drop this here:ATTINY4-TS8RTR-NDPart Status: End of Life; Last Time Buy Date: 06-05-2017. Minimums may apply.ATTINY10-TS8RTR-NDPart Status: End of Life; Last Time Buy Date: 06-05-2017. Minimums may apply.ATTINY5-TSHRTR-NDPart 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.

author: Dave
author_rank: Super Contributor
timestamp: April 06, 2017, 12:46:09 pm
content: Quote from: Jeroen3 on April 05, 2017, 07:35:23 pmIf 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.

author: Dielectric
author_rank: Regular Contributor
timestamp: April 06, 2017, 12:46:26 pm
content: 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.

author: Scrts
author_rank: Frequent Contributor
timestamp: April 06, 2017, 02:46:42 pm
content: We've got same issues with majority of the passive suppliers too.

author: RoGeorge
author_rank: Super Contributor
timestamp: April 06, 2017, 03:06:24 pm
content: 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?

author: FrankBuss
author_rank: Unknown
timestamp: April 06, 2017, 04:37:09 pm
content: Quote from: NANDBlog on April 06, 2017, 08:58:38 amIt 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.

author: tszaboo
author_rank: Super Contributor
timestamp: April 06, 2017, 04:40:47 pm
content: Quote from: FrankBuss on April 06, 2017, 04:37:09 pmUpdate: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.

author: Cerebus
author_rank: Super Contributor
timestamp: April 06, 2017, 04:45:28 pm
content: Quote from: Dielectric on April 06, 2017, 12:46:26 pmThat's a horrible libel,pirateshave a code of honour!

author: vodka
author_rank: Frequent Contributor
timestamp: April 06, 2017, 05:43:21 pm
content: Quote from: RoGeorge on April 06, 2017, 03:06:24 pmThat 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

author: marshallh
author_rank: Unknown
timestamp: April 07, 2017, 03:22:49 pm
content: The level of consolidation and parts EOL/production shortages seem to have increased sharply in the past 5 years.

author: Cerebus
author_rank: Super Contributor
timestamp: April 07, 2017, 04:12:22 pm
content: Quote from: marshallh on April 07, 2017, 03:22:49 pmYes, 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?