Please read our latest Milwaukee Electronics Newsletter, which includes:
- Tecate Facility Adds New SMT Line
- A Message from Rick McClain, President & COO
- Mitigating Supply Chain Disruption Through Transfer of Work
- In Memoriam – Remembering Art Cannon
It is with great sadness that we announce the passing of Arthur W. Cannon on August 7, 2020.
Art Cannon was the Founder of Milwaukee Electronics’ longest and highest performing Sales Rep firm, Cannon Associates. Art was a visionary that built his company to what it is today, with the same team he put into place more than 25 years ago.
In the early days, Art and our Founder & CEO, Mike Stoehr, built a significant book of business. Many of the relationships that resulted from those efforts are still in place today.
Milwaukee Electronics has lost a family member in Art Cannon. His spirit, work ethic and business stories, with his life experience will be remembered fondly by both the Cannon Assoc, and Milwaukee Electronics families. Art has left an indelible mark on our company and we join our partners at Cannon Associates as we endeavor to carry on his legacy.
We take this opportunity to honor Art’s contributions since our relationship began in 1994. More than that, we thank him for creating a partnership that will last long into the future.
Very Sincerely,
The Milwaukee Electronics Family
Please read our latest Milwaukee Electronics Newsletter, which includes:
- Tecate Facility Adds Capabilities, Navigates COVID-19 Challenges
- A Message from P. Michael Stoehr, CEO
- Milwaukee Electronics Universal Test Platform Reduces Cost of Test
- Milwaukee Electronics Adding New EMS Customers
Please read our latest Milwaukee Electronics Newsletter, which includes:
- Production Teams Show Agility In COVID Response
- A Message from Rick McClain, President & COO
- Portland, OR Facility Adds Equipment
- Milwaukee, WI Facility Adds Work Cell Flexibility
Milwaukee, Wisconsin — February 25, 2020 — Milwaukee Electronics and subsidiary Automation Controls Group will reveal its line of UniDrive® ZoneLogixTM controllers at MODEX 2020 ZoneLogixTM and ZoneLogix PROTM zero pressure accumulation (ZPA)/ZLP) controllers provide end-users, systems integrators and conveyor OEMs with the advantages of ZPA/ZLP with or without PLC interface.
Designed to operate seamlessly with the UniDrive flagship line of Brushless DC conveyor motors, the ZoneLogix controller line provides a new level of product and zoned-system control, without the need to directly wire PLCs to each zone.
The first North American showing of ZoneLogix under the UniDrive brand, will be at MODEX 2020 in Atlanta, Georgia, from March 9-12, 2020, at Booth #6094 at the Georgia World Congress Center.
UniDrive ZoneLogix Press Release Feb 2020
Milwaukee Electronics is closely monitoring the impacts of the coronavirus in China and elsewhere. At present, we anticipate only minimal impacts on our supply chain and our ability to deliver products to our customers.
The situation, however, is fluid and could change on short notice.
We are gathering information from suppliers with China based manufacturing and those with supply chains that rely on China output. While we have yet to be notified of any specific delays, we expect that any extended closures could result in shipping delays of products or components manufactured in China.
In addition, the Milwaukee Electronics Singapore office and our overall supply chain strategy focuses on direct relationships with our offshore (not just China) factories for improved transparency. We are getting information directly from the local factories, in the local language, and are keeping a close pulse on this situation.
Here are a few details that we do know:
- Chinese New Year shutdown was extended unilaterally by one week until February 10th by the Chinese government
- Hubei Province Chinese New Year shutdown has been extended indefinitely
- Late last week, the Chinese government put in additional restrictions which require manufacturers to pass a government issued inspection prior to opening back up
- These inspections are now backlogged with little communication on the future schedule
- In addition to this, there are significant travel restrictions which has prevented workers from returning
- These impacts are very supplier unique; we have some suppliers as low as 45% people capacity and some as high as 75%
- Air shipments are being impacted as 90% of the passenger capacity between China and the rest of the world has been cancelled until the end of March at earliest. Passenger places account for approximately 45% of freight capacity as goods are shipped in the belly of the planes
- Chinese ports are open, but trucking companies are just beginning to ramp up volume
It is important to note that Milwaukee Electronics has no manufacturing locations in China.
If you have any questions, please do not hesitate to contact your local Program Managers or Milwaukee Electronics contact.
Please read our latest Milwaukee Electronics Newsletter, which includes:
- A Message from Mike Stoehr, CEO
- Tecate, MX Facility Technology Investment & Expansion
- Test Engineering Optimizes Functional Testing
As we pass though the last month of Summer, Milwaukee Electronics shares a valuable market review. While the supply chains of electronic manufacturers around the world are challenged by the impacts of component shortages, allocation, capacity & lead time issues; there are signs of stability, recovery and growth.
MLCCs
Multilayer Ceramic Capacitor (MLCC) inventory is beginning to build up, possibly due to over-ordering in the marketplace by end users and distributors. Several key distributors are now holding stock on lines that have been on allocation over the past 18 months. The problem of allocation has not resolved itself fully, but it is becoming a less critical issue as the market improves and smaller case sizes become more readily available. Larger case sizes are still problematic, in part due to TDK and Murata obsoleting a large proportion of their MLCC catalog (over 241,000 and 9,000 product lines respectively).
Sales and Acquisitions
Infineon is set to acquire semiconductor company Cypress. This will allow them to compete in the Electric Vehicle (EV) market and become a significant chip-maker in the global market. The deal is set to be completed by early 2020.
Marvell have sold their wireless and Bluetooth business to NXP for $1.76 billion which is set to complete by Q1 2020.
GlobalFoundries have agreed on the sale of their New York based 300mm fab to ON Semiconductor for $430 million. ON Semi will gain full operational control of the fab by the end of 2022, with GlobalFoundries manufacturing 300mm wafers on site until handover is completed.
Capacity and lead-time issues
There is a global shortage of Silicon Carbide (SiC) due to a limited number of vendors being able to produce the wafers. ST Microelectronics is strategically investing to ensure they have a supply chain that will be able to support the growing use of SiC in high power/high efficiency needed in consumer markets such as EV’s and the Internet of Things (IoT).
TDK and KOA have closed their order books whilst they battle to ensure continuity of supply to their customers with MLCC’s and commodity resistors. This is the same response as Murata, Rohm (resistor networks) and Vishay (passives).
- Samsung continues to cite allocation on many of their MLCC lines however there is still evidence of stock availability in the marketplace.
- Diodes Inc. are seeing allocation on many of their Zener diodes, bipolar and digital transistor and some general-purpose transistors.
- Infineon MOSFETs are on allocation with short supply globally.
- Yageo lines are more readily available with lead-times around 20 weeks.
- TE connectors are experiencing lengthy lead-times and relays are on allocation. This is most notable with circular connectors, TE’s Deutsch line and automotive connectors.
- ST Microelectronics has partnered with Cree to supply Wolfspeed SiC wafers during a period of growth.
- Analog Devices are experiencing production delays with lead-times on certain lines extending beyond 24 weeks and in some cases over 32 weeks.
- MLCC pricing is stable despite the ongoing market conditions but is not decreasing significantly.
- Analog Devices pricing (including Linear Technology lines) is expected to increase, and lead-times are still beyond those that are usually observed.
- Infineon MOSFETS are on allocation (fueled further by the SiC shortage) and pricing is unstable, with increases observed during the last 6 months.
- Murata filter pricing is set to increase.
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