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Gina Roos


Editor gina.roos@electronics-sourcing.com


Risky business


Thismonth's DRAMarticle brings attention to the risk of buying on speculation or stocking up onmemory devices because pricing is so low. Yes, DRAMpricing is likely to have reached rock bottomor is very close to it so now would seemlike a good time to stock up on DRAMs, right? The thought is when demand rises again, OEMs will have the supply they need.


But there is always the risk that you'll be stuck withmemory devices that you


can't use for two key reasons: demand never recovered and new systems have been designed with newer components.


So caution is the word for thismonth.While gobbling up all the parts that you


can because prices are so lowmay seemlike a tempting idea, purchasers should be practicing good sourcing strategies such as forming long-termpartnerships with their suppliers to ensure a stable supply, and keeping an eye on production capacity plans so you don't get caught short. As one leading chipmaker recently toldme "leaders understand the importance of long-termrelationships."


On the flip side, if supply tightens, and there are shortages or even allocations,


and you need to go into the openmarket, independents distributors can help ensure that your lines don't go down.Many independents report that their sales grew 20 to 30 percent last year asmany OEMs and EMS providers scrambled to find components. Those hit the hardest included capacitors, resistors, transistors,MOSFETS and diodes. Turn to pages 34-37 to find out how independents can help you out of a supply jam.


If you have any comments, questions, or story ideas, please sendme an e-mail. I can also be reached at 207-989-2368.


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Articles appearing in thismagazine do not necessarily express the views of the Editor or the publishers. Every effort ismade to ensure the accuracy of information published. No legal responsibility will be accepted by the publishers for loss arising fromarticles / information contained and published. All rights reserved. No part of this publicationmay be reproduced or stored in a retrieval systemor transmitted in any formwithout the written consent of the publishers.


Sourcing ELECTRONICS PUBLISHING March 2011 | 3 30


Medical Electronics Medical start-up reaps benefits from PLMsystem


34


Independent distributors Component shortages drive growth


41


What's New Spacing-saving components


Capacitors Shortages ease


26


EMS Why geopolitical issuesmatter


DRAMs It's a buyer'smarket


Contents March 2011 Vol 2No.3 6


News High chip inventories


16 22


US LLP


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