Tremendous problems in sourcing ST MEMS parts

[MSimo.2]

We Ordered > 100k parts at the start of February this year: My distributor (EBV) is not even getting a confirmation date, and if something is given by ST, it is far in 2022. (Date today is August 13)

ST, what is going on here? Please explain and inform your customers, so they can decide to wait or to start to execute an 'escape plan' (= going away from ST MEMS devices) Time is ticking away and we run into tremendous problems. Our stock is growing, cash flow is going down, because we can't produce due to a couple of silly ST MEMS devices that are not available. It may lead to board change, and kick out ST devices from it, I am sorry.

Everybody is blaming COVID for these problems, but hey, in the electronics industry there was NO REASON at all to stop production. I have to say this that we consider this as a giant management f*ckup in the semi conductor industry in general.

(Note that the parts we ordered are active parts with 'in production' status)

[Eleon BORLINI]

Hi @MSimo.2​ ,

Ya, we know this problem very well. Unfortunately, it doesn't depend fully on ST capacity, but mostly upon the manufacturing suppliers.

Which device part number are you looking for?

Since your order is (much) more than 100k, I suggest you to contact sales offices and representatives from this LINK.

In the meantime, I'll try to reach internally relevant people from EMEA sales and MEMS&Sensors division and check what they can do.

-Eleon

[MSimo.2]

Hi Eleon,

At first, many thanks for your prompt feedback.

Maybe it is a good idea that ST is informing distribution (and on its website) about the current production status ?

Devices we use in large quantities are:

§ HTS221TR

§ LIS2DH12TR

If you could shine a bit of light on this, it would be absolutely great !

Our brokerage 'buy stop limit' is at 4 times the manufacturer / distributor buying price, but all stocks already have dried up. Not getting informed is making everybody extremely nervous here. ( People ask me: What the heck is going on within ST MEMS division? What can we expect? )

Please note that we never believed in JIT, we always had good stock. But this is breaking us up now. So please escalate this request. ST should do their best to not let companies become 'past Covid' victims due to prolonged parts shortage, due to other companies leaving the JIT method. Share what ST can produce, that's what I suggest here.

Best regards,

Marcus

[Eleon BORLINI]

Hi Marcus,

thank you for the explanation, I'm aligning internally with the relevant people but this is a vacation period so the feedback is a bit delayed.

What I could suggest you is that LIS2DW12 is a valid substitute of the LIS2DH12TR (while no substitute so far for the HTS221TR), so my suggestion is to check the availability of that part number across the distributors .

-Eleon

[Tesla DeLorean]

Near term finding out a part has a 9 to 12 month lead time is something you already know. Industry press and leaders, including those from ST, have already suggested the supply issue is going to be with us for at least 12-18 months. I think we're way beyond the need for up-to-the-minute order backlog or serving-now counters.

https://www.reuters.com/technology/stmicros-average-chip-prices-up-5-so-far-this-year-ceo-says-2021-07-29/

Parts brokers, and those holding hard to source parts know the spot price is way beyond 4x

[MSimo.2 · Accepted solution]

Eleon, thanks for your reply.

Lots of smaller EMS and design companies run into cash flow problems due to the bad availability of parts. We all know that the ones shouting hardest are helped first, while the ones with the smaller quantities are the ones that lay the basis of new products for tomorrow.

So I find that ST has the task to share quantities among *all* of their customers. Everybody has to agree on this.

Delivery times not even given are unacceptable, and damaging the industry. As only we had 5k of each for the next 6 months I would be extremely happy !

This allows us to deliver products and to keep the cash flow up for everyone in the production chain, for the 6 months ahead.

ST has to do something and has to inform their distribution chain (EBV in my case) what the plans and expectancies are.

Marcus

[Uwe Bonnes]

Welcome to the Club :(

[Eleon BORLINI]

Dear Marcus,

I shared you the internal ST contact, which is aware of the specific problem, I hope he will help you directly on this and find a solution.

-Eleon

Ps: I totally agree with your vision, both personally and at a business strategic level, on the basis of my experience as technician (Sc.D in physical engineering) and as economist (MEcon in economcs and data analysis).