What Is Basler’s Approach on Lead Times in the Current Supply Situation?
As the demand-supply-situation for semiconductor-related components has become increasingly tense and lead times for products such as chips, sensors and electronic parts are posing a continuous challenge to manufacturers and distribution networks alike, Basler is focusing all efforts on providing a realistic outlook and utmost transparency on the current supply situation and delivery commitments to its customers.
What is the status in terms of product availability and lead times at Basler?
The current bottlenecks in the semiconductor and electronics procurement markets lead to extended delivery times across the industry. All suppliers of silicon-based products struggle with the heavily increased demand for these products. Recent talks with our suppliers provided no indication of any potential quick fixes to the wafer shortage issue. As of today, some of the sensor manufacturers carry heavy order backlogs which also affect the availability of their sensors required for some Basler products:
- AMS: Line scan sensors and CMV
- E2V: all monochrome sensors
- ON Semiconductor: Python 300 / 500 / 1300
Basler’s purchasing department has been able to secure a basic supply of those sensors throughout the year, with orders for the first quarter of 2022 already placed. However, additional quantities to cover any further increasing demand will most likely be very challenging to procure.
At the moment, the supply of SONY sensors, in contrast, remains comparatively stable due to the fact that SONY is in control of their supply chain down to the wafer level.
However, considering the current dynamics in the demand and supply situation across the entire industry, any precise statement on the availability of components remains volatile and dependent on the developments in our suppliers’ delivery situation.
How is Basler dealing with increasing lead times?
It is our utmost aim to provide you with the most reliable and competitive lead times possible in this challenging environment. Since December 2020, we have increased our product output by around 10 % each month. We are focusing all our resources on keeping these levels up and even increasing our output capacity from mid of this year, provided the supply side will remain on a level similar to today’s situation. Our two independent production sites in Germany and Singapore are well-equipped and work closely together in our aim to provide our customers and partners with all the material required for your operations.
Our purchasing department works tirelessly with all the resources and possibilities at its disposal to procure the stock of components necessary to deliver our products to you within a reasonable timeframe. In parallel, we are qualifying alternative electronic components from new suppliers to provide greater flexibility and capacity. We are well aware of the inconveniences extended lead times pose on our customers’ operations and are doing whatever we can to keep those inconveniences to a minimum.
What are the reasons behind this supply situation?
One of the side effects of the worldwide pandemic and its various lockdown measures is a strong surge in demand for electronic components, in particular in the semiconductor industry. A boom in sales of home computers, TVs, new gaming consoles and 5G-enabled mobile phones, as well as car manufacturers pushing their tech-heavy electric vehicles, have all contributed to this strong increase in demand. Combined with COVID-19-related disturbances in worldwide logistics, usually reliable and well-organized supply chains have increasingly been strained and affected.
As a vision components provider and camera manufacturer, Basler naturally has a high exposure to suppliers of sensors, chips and other electronic components. Although we feel the challenges of the insufficient output from the large wafer foundries that struggle to keep up with the high demand mentioned above, we concentrate all our efforts on continuously providing you with the reliability and excellent quality we are committed to serve you with.
We thank you for your continued trust and support. If you need more specific information on individual product lead times, please refer to our continuous delivery updates and do not hesitate to contact our sales team. We are happy to assist you with all the information and guidance you may require.