Welcome to the first edition of our global design and sourcing insights summary, where we aim to provide you with a comprehensive overview of the current market trends and developments in the industry. By analyzing data from our Design-to-Source Intelligence (DSI) network, we uncover valuable information on design and sourcing activities across various regions and sectors. From month-over-month comparisons to year-over-year growth, we’ll explore the factors driving these trends and offer valuable insights into the future of design and sourcing.
In May 2023, both design and sourcing activities witnessed growth across the DSI network, compared to the previous month. Design activities increased by an impressive 9% month-over-month and 12% year-over-year, making it the second-highest month for design since March 2022. This surge was observed in all regions, with Spain and South Korea experiencing the largest increase in design activities. Notably, the EMEA region defied its historical trend of a -3% to -5% decrease in May, indicating an unusual rise in design activities.
On the sourcing front, there was a 7% month-over-month increase in global sourcing activities in May. However, it’s important to highlight that overall demand remained below the levels of the previous two years, reflecting a contraction in buyer demand. Growth in sourcing activities was observed across all regions, with Taiwan, Canada, Italy, and Malaysia showing the highest increases in demand. Conversely, China, the United States, and India experienced more subdued growth. Passive components and connectors emerged as the key drivers of demand, experiencing substantial month-over-month increases. Integrated circuits (ICs) and discrete semiconductors saw nominal growth, while microcontrollers (MCUs) remained relatively stable in terms of buyer demand.
As global design activities continue to exhibit strength and growth, we anticipate that global sourcing activities will gradually recover in the latter half of calendar year 2023. Historical data reveals that sourcing trends often lag behind design trends by 5 to 6 months in the DSI network, emphasizing the interconnected nature of these activities.