Buyers can expect leadtimes for flash memory to continue to be stretched out for the rest of the year. Leadtimes for 8-megabit (Mb) flash devices stretched to 19.5 weeks in April from 6.1 weeks in December. Demand is rising because more electronics equipment is using this type of memory. Demand will be especially strong in the third and fourth quarters as equipment is built for the Christmas selling season. However, stretching leadtimes for 8-Mb devices may be especially troublesome for buyers because flash manufacturers are focusing production on the higher density devices used in cellular telephones.

Leadtimes for multilayer printed circuit boards (PCBs) stretched in the first quarter. The average leadtime was 6.8 weeks in December, but leadtimes moved out to 13 weeks by April. This is bad news for buyers because leadtimes stretched even though electronic equipment production declined in the first quarter compared to the fourth quarter of 2003. Communication equipment is moving higher, however, so overall equipment production will pick up in the second quarter—and is forecast to rise even more in the third and fourth quarters. This will mean further stretching of PCB leadtimes.

April leadtimes for rechargeable nickel-cadmium (NiCD) batteries almost tripled in a month to 9.2 weeks. Likewise, lithium-ion and nickel-metal-hydride cell delivery times also expanded, well past a dozen weeks. However, battery leadtimes tend to be volatile. NiCd batteries' average leadtimes have ranged from 3.5 weeks on 7 weeks over the past six months-before really stretching out in April when producers were caught without safety stocks. Further volatility is likely through the rest of the year.