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Global Commodity Intelligence

Q2 2025 | APRIL - JUNE

Multi-Layer Ferrite Bead Supply Constraint Continues Throughout 2021

July 19, 2021

 

The continued surge in demand has further constrained the supply of EMI suppression filters for signal and data lines, commonly used across various electronic devices and equipment.

Multi-layer ferrite beads is one of the widely used passive components as the solution for EMI suppression.

Major manufacturers include Murata, TDK, Taiyo Yuden, Chilisin, Sunlord, Laird, etc which are already used extensively across Jabil Segments. 

What You Should Know

  • Lead time extension
    • Lead times have been extended multiple times in the past few months. It is now largely over 20 weeks
    • Some manufacturers may likely announce further lead time extension to 30 weeks and beyond
  • Factory capacities are already exceeding 90%
    • 0603 and larger size are hardest hit
    • 0402 and smaller size may worsen with the seasonal demand of mobile devices
  • Bookings are 2 - 5 months depending on product lines
    • Some manufacturers have enforced soft allocation on a monthly basis
    • TDK announced allocation from April 2021 for their MMZ1608/MMZ2012,MPZ1608/MPZ2012 line up
    • Murata raised alert on high booking for their BLM18/BLM21 line up
  • Manufacturer landscape
    • Taiyo Yuden had announced EOL plan for their multi-layer ferrite bead, BK/BKP line up, to be terminated by end 2022
  • Manufacturer/Supplier possible course of action
    • Suppliers may reject orders and no bid for new JPN and business
    • Suppliers will push back to support pull in and short lead time order

Key Recommendations

  • Ensure lead-times are up to date in the system as they remain fluid.
  • Provide suppliers with longer-term demand visibility and ensure sufficient PO coverage to book supplier's capacity in advance.
  • Secure open market stocks, distribution inventory will be consumed very quickly, so timing is of the essence.
  • Avoid orders that are pushed out or canceled. Once the allocation is lost, any pull-in cannot be supported.
  • Check inter-site stocks for opportunities.
  • Approve more alternative suppliers. Most major manufacturers are operating at full capacity, so right selection for new AML approvals is key. 

Impact to Jabil and Its Customers

  • Prolonged capacity constraints will force suppliers into allocation mode and de-focus their legacy products, such as big case sizes.
  • Potential price increases may occur in Q4'21 although we have pushed back most to date.
  • It's essential to work with our customers for continuity of supply and potential price adjustments. from the suppliers.
  • We will continue to assess and update on the situation, as necessary.

If you have any questions or require additional assistance, please do not hesitate to contact me directly (Daniel_Poo@jabil.com). 
 

Daniel Poo, Global Commodity Manager 

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