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IPD prices to fall

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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