Surplus components inventory has been a curse all year and will continue into Q4, says Sourcengine in its Q4 Lead Time Report.

If consumer demand doesn’t pick up in Q1, then excess inventory will continue to affect component vendors.

PEMCO (Passives, ElectroMechanical and Connectors) segments have been hit by materials shortages.

DRAM is thought to have stabilised after production cuts with prices expected to rise but NAND prices are expected to stay low