SUPPLY CHAIN ADVISORY NOTICE
Display Driver IC Availability, Electronic Component Lead Times, and Future Demand Planning
Dear Valued Customer,
At Microtips Technology, we remain committed to providing our customers with high-quality display solutions, reliable delivery performance, and transparent communication regarding market conditions that may impact product availability and pricing.
Over the past several months, the global electronics industry has experienced renewed supply chain challenges driven by increasing demand across the automotive, industrial, medical, telecommunications, energy management, and AI-related markets. As a result, several critical electronic components used in LCD modules, TFT displays, touch panels, OLED displays, and related products are experiencing supply constraints, extended lead times, and cost increases.
A significant area of concern involves Display Driver ICs (DDICs), including components supplied by major semiconductor manufacturers such as Sitronix and other industry-leading suppliers. These devices are essential to the operation of many display products and have become increasingly difficult to secure due to capacity limitations and growing worldwide demand.
In addition to display driver ICs, the market is also experiencing increased pressure on:
- Semiconductor devices and integrated circuits
- Power management components
- Touch controller ICs
- Passive components including MLCCs and specialty capacitors
- PCB materials and electronic assemblies
- Raw materials and logistics services
Many suppliers throughout the electronics industry have already announced lead time extensions and cost adjustments, while others continue to evaluate future market conditions.
To help ensure uninterrupted supply and maintain production continuity for our customers, Microtips Technology is actively working with our manufacturing partners in Taiwan, Vietnam, and other global locations to secure material allocations and increase strategic inventory levels wherever possible.
However, due to factors outside of our control, customers should be aware of the following potential impacts:
Lead Time Outlook: Current lead times for certain products may extend beyond historical norms. Depending on product configuration, material availability, and semiconductor allocation status, lead times may increase to 20–24 weeks or longer for selected products.
Potential Pricing Adjustments
- Due to ongoing increases in semiconductor, electronic component, raw material, and logistics costs, Microtips Technology may be required to adjust pricing on existing quotations, future quotations, and long-term supply programs when significant cost increases are imposed by our supply chain partners.
- Quoted pricing is based on current material costs and availability and may be subject to adjustment if significant increases are imposed by component manufacturers prior to order placement or shipment.
- While we will continue to make every effort to absorb and minimize these increases whenever possible, certain market-driven cost adjustments may be unavoidable.
Customer Planning Recommendations
To minimize potential disruptions and secure production capacity, we strongly recommend that customers:
- Review anticipated product requirements for the next 12–18 months.
- Provide updated forecasts as early as possible.
- Place purchase orders and blanket orders at the earliest opportunity.
- Communicate any significant changes in demand projections promptly.
- Work closely with Microtips Technology to establish inventory and supply strategies for critical programs.
Early visibility into customer demand allows our team to secure component allocations, reserve manufacturing capacity, and better support your long-term requirements.
Microtips Technology remains committed to supporting our customers through these challenges, proactive planning will be critical to ensuring supply continuity.
Accordingly, customers should anticipate:
- Potential lead time extensions of 20–24 weeks on selected products and programs.
- Possible future price adjustments resulting from increases in semiconductor and electronic component costs.
- The need to evaluate demand requirements for the next 12–18 months and place purchase orders as early as possible to secure material availability and production capacity.
We sincerely appreciate your continued partnership and trust in Microtips Technology. Should you have any questions regarding your current programs, forecasts, or future requirements, please contact your Microtips sales representative.
Sincerely,
Reza Arfin
General Manager
Microtips Technology LLC
Orlando, Florida USA
Office Phone: 888-499-8477, Ext 101
Mobile Phone: 407-758-1095
www.microtipsusa.com