However, there isn't as much price pressure as in past years
Gina Roos -- Purchasing, 7/2/2009 11:12:40 AM
Integrated passive device (IPD) suppliers say leadtimes are
steady and commodity part prices are falling because of weak demand caused by
the economic downturn.
"Average prices decline about 15% year-on-year, which
is normal," says Kyle Baker, vice president of marketing, California Micro
Devices, Milpitas, Calif. "We haven't seen as much price pressure this year as
we've seen in prior years because volumes are down."
In fact for many suppliers, IPDs have never developed into a
huge commodity market involving large volumes of parts.
Ten years ago, IPDs were touted as the future of the
industry, says David Valletta, executive vice president worldwide sales for
Vishay Intertechnology in Malvern, Pa. IPDs can be expensive but they often
result in lower total cost as they reduce board real estate, says Valletta.
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