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PCB Suppliers are facing shortage of Copper Foil and Chinese New Year is coming!
For Elmatica a crucial element is to keep our customers updated on changes in the market, so that potential obstacles and risks for your production and shipping can be identified, avoided or reduced.
Please take notice of the following two external factors in the near future.
The coming Chinese New Year, will affect production and cause delays.
The industry is at the moment facing a shortage of copper foil and hence laminate, which will lead to a general lead time increase of three weeks, for a period of minimum six months.
How can we support you, to reduce the impact of this external factor?
- Please place the PO as early as you can, as the lead time will increase 3-6 weeks.
- Update the lead time in Your ERP system by 6 weeks, until 15.02.2017
- Please send us forecast for Your parts, including binding period in the forecast.
- Please consider buffer purchase for high volume projects.
- If you have any questions do not hesitate to contact us.
What are we doing?
- Negotiated shorter lead time.
- Negotiating lead time for special orders.
- Booking raw material in advance, based on binding forecast.
Why is this happening:
- The coming Chinese New Year starts on 2017-01-27. Since this is a national holiday, it naturally affects all production, and causes delays.
- The major copper foil manufacturers are experiencing increased demand for Samsung Galaxy note 7 mobile phone batteries due to quality issues, and more importantly their main production focus is changing from PCB copper foil to battery copper foil, due to increased prices. The immediate result is a temporary shortage of laminate, as manufacturers will need to rebuild capacity.
- Normal lead time will increase by minimum 3 weeks for standard material, and up to 6 weeks for special copper thickness, due to copper foil shortage.
As always, planning ahead is smart.
About Chinese New Year:
The Chinese New Year is the most important holiday for the Chinese. It is defined to be the first day, of the first month in the traditional Chinese calendar. Unlike the Christian New Year, which is based on a solar calendar, the Chinese New Year is based on a traditional Chinese lunisolar calendar, whose date indicates both the moon phase and the time of the solar year. A lunar month is around 2 days shorter than a solar month. In order to “catch up” with the solar calendar, an extra month is inserted every few years. This is why, according to the solar calendar, the Chinese New Year falls on a different date each year. 2017 will be the year of the rooster.