Look back on 2020, I want to thank our customers and supply partners for a great year, despite all the global challenges.
As we look forward, there is a consensus across the industry that we all are entering a period of significant expansion in the semiconductor market. Across almost all market verticals, strong growth is forecasted for the next several years. And like all semiconductor manufacturers, we are seeing some impacts show up in our supply chain. Capacity has tightened, and lead times are extending across the industry.
With this constrained supply environment, we are asking our customers to please increase the frequency, time horizon, and the accuracy of your forecasts where possible. Current product lead times have extended to 7 months on average. We continue to procure supply to our customers forecasts. We will always strive to meet all our customers demand, however unforecasted demand may prove to be challenging.
For the highest level of support, we ask customers to forecast their demand monthly, with a 12 month time horizon, and to place orders with 8 to 12 weeks of leadtime. Unforecasted demand, and orders inside 8 weeks are subject to a 15% cost adder to mitigate the expedite fees we are charged by our supply partners.
Thank you for your continued support, and the privilege of being your ATE technology partner
Adam Haigis, Vice President of Operations