Supply shortages of raw materials drive up tantalum capacitor prices 1

Global distributors believe that tantalum capacitors will continue to face supply shortages in 2011, but they expect these components to remain no more difficult to obtain than they are now in the coming year. However, as the supply situation of raw material tantalum remains concerning, buyers may anticipate further price increases in the foreseeable future.diode

"From the perspective of ease in obtaining (tantalum) devices, the situation is beginning to stabilize," said Michael Knight, Vice President of Enterprise Product Management at TTI, a specialist distributor for Interconnect, Passive, and Electromechanical Products (IP&E). "Smaller capacitors are experiencing longer lead times and supply shortages, but they are still available. Even some larger capacitors are facing supply constraints. We maintain sufficient inventory, and the channel situation is favorable. Demand and production have stabilized, ensuring adequate supply to meet demand."diode

Harley Feldberg, Global President of Electronics Marketing at Avnet, shares a similar perspective. "I don’t sense a severe shortage of tantalum capacitors," he said. "The rumors circulating in the supply chain make the situation appear quite dire, but based on my investigations and discussions with our product experts, they indicate that long lead times and ongoing price increases do seem to persist."diode