CCD Shortage Delays Production of new Digicams

The release of several new digital still cameras models is delayed in Japan. Fiji Film postponed the introduction of FinePix F700, which was originally going to be released in early May 2003, to summer 2003. Matsushita Electric postponed release of the Lumix DMC-LC33 by one month to mid May 2003. Olympus put off sales of CAMEDIA C-750 Ultra Zoom to mid June 2003. It was initially set to be available in late April 2003. The reason for these delays is scarce components, with severe shortages in CCDs. The CEO of Olympus complains that manufacturing cannot keep up with demand because of the device shortage. Different models of digital still cameras require slightly different CCDs.

Camera manufacturers would like to deliver high volumes at the time of introduction of the products; however, CCDs typically have low yields at the initial stage of manufacturing. By the time the yield problem is under control, sales of popular models dwindles and thus CCDs will become inventory, comments an executive of Fuji Film.

Sony, Sharp and Matsushita are boosting output of CCDs. Sony, the world's largest CCD manufacturer, is going to boost output to 7.2 million CCDs a month in this summer from 3.5 million CCDs a month at the end of 2002. However, the camera handset market is also catching on at a full speed and requiring large quantities of CCDs. The shortage of CCDs is not likely to be resolved for a while. [Source: M. Robertson, Portelligent]