Industry Insider

Manufacturers

Market Trend

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Industrial demand is reportedly on the rise as customers from numerous companies anticipate shortages.

Additionally, mobile and computing demand is expected to increase in Q3 and Q4.

For more information about industry trends, check out Fusion Worldwide’s analysis of quarterly earnings calls by clicking here.

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Memory prices are expected to continue rising alongside the possibility of shortages towards the end of the year. 

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U.S. tariffs on imports from China have been under review for some time. However, under pressure from lawmakers, U.S. President Joe Biden unveiled an increase in tariff prices on Chinese imports. The updated pricing impacts electric vehicle batteries, computer chips, and medical products. 

Read more about the announcement here.

Prior to this announcement, manufacturers were already tightly managing distribution inventory to regain market share and compete with Chinese manufacturers. This development stems from the recent shifts in demand caused by China’s push for technological self-sufficiency. 

Demand for MCUs from Chinese manufacturers has seen a concentrated spike in demand as a result of this trend.

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Certain companies are still assessing their facilities after the Taiwan earthquake. While most facilities have resumed production, delivery for products that are COO Taiwan are expected to be delayed.

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The IC market is still navigating excess supply and customer’s inflated inventory levels. Based on current demand, this situation may not be resolved until next year.

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HDD supply has reportedly been increasingly limited since the beginning of April. This situation has pushed Tier 1 customers to the open market to find secure continuity of supply.

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Passives

Manufacturers are signaling that passives may be short in the coming quarters due to an uptick in order pull-ins coinciding with previously planned production cuts. Additionally, there has been an uptick in demand amongst Chinese and U.S. customers.

Advanced Micro Devices (AMD)

CPU

AMD’s EPYC 7713 is experiencing shortages and is reportedly unavailable for the rest of the quarter.

Advanced Micro Devices (AMD)

Samsung

HBM

AMD has signed a $3 billion agreement with Samsung for the supply of High Bandwidth Memory 3E (HBM3E), a critical component used in AMD's artificial intelligence and high-performance computing (HPC) products, like the MI350. Samsung's strategy with this deal is to gain market share in the HBM3E sector.

Samsung aims to start mass production of its HBM3E chips in the second quarter of 2024, with delivery to AMD beginning in the third and fourth quarters of 2024. As part of the deal, Samsung will also purchase AMD GPUs, forging a reciprocal business relationship.

Broadcom

Ethernet ICs are experiencing a wave of increased demand due to their usage in data centers and cloud computing. Lead times for the BCM5xxx and BCM8xxx series are up to 50 weeks. 

Customers are reportedly turning to the open market to secure supply as Broadcom is struggling to meet demand.

In particular, supply of BCM8 and BCM5 series is challenging as customers report unstable delivery.

Broadcom

Market intelligence reports indicate that Broadcom will launch a new series of PCIe switches in the coming quarters.

Intel

Costs for the desktop 12th and 13th Gen CPUs are reportedly not open to negotiation or any special rebate pricing.

Supply of Meteor Lake products primarily used in AI applications is reportedly constrained. Supply constraints are expected to continue through June, and allocation has been limited for several months.

Allocation for Meteor Ultra is also experiencing constraints as customers compete to secure supply amidst limited availability. Amid these constraints, demand shows no signs of slowing.

Intel

Solidigm

SDD costs will reportedly increase by 15% - 20% this quarter.

Microchip

Microchip has cancelled their long-running PSP program, which began during the shortage years as a way to for clients to secure supply and Microchip to increase its visibility into true demand. Furthermore, Microchip is shutting down one of its largest U.S. production facilities in the coming months and supply may be impacted.

For more information, click here to see what Microchip said in its latest earnings call.

Microchip

Market reports indicate that raw material shortages are impacting manufacturing capabilities. This is expected to impact lead times because of a lack of wafers needed to manufacture ICs.

If supply does not improve, lead times are expected to increase in the coming months, with certain products going from 8– 12 week lead times to 20 weeks.

Micron

DDR5

Micron will be the first to launch its version of the single memory die for HBM stacks, which will likely lead to competition rolling out their versions within the year.

This product launch may impact lower capacity forms of D5, as manufacturers are signaling that there would be no support for upside in demand. This means that customers will only receive supply based on their pre-submitted forecasts. Supply could be constrained in the second half of the year due to CSP activities.

Micron

DRAM

Micron has resumed quoting with no change in lead times following the Taiwan earthquake. While DRAM supply was reportedly affected, the percentage is considered insignificant. 

While lead times remain the same, pricing is expected to increase by at least 20% this quarter. Mobile DRAM will see a smaller increase, around three to eight percent. However, server DRAM costs are anticipated to be in in the higher end of the cost increase range.

Micron

The Taiwan earthquake impact was minimal, and facilities are fully operational. Capacity for 2024 is currently sold out and 80% of capacity for next year is already sold.

Furthermore, there are plans to expand HBM3E manufacturing this year. Currently Micron is planning to relocate all non-HM production lines from the MTB factory. Additionally, they aim to replicate the HBM lines at their MTB facility to secure additional capacity.

Micron also has HBM4 in the early stages of production. The rollout plan for HBM4 will begin in 2025 with the release of samples at the mid-point of the year. Mass production is scheduled to begin at the end of 2025. 

Murata

Reports of Murata supply constraints are increasing. This trend may be the result of the disruptions caused earlier this year by the earthquake in Japan. 

Nvidia

Mellanox

Demand is increasing for certain Mellanox Ethernet ICs thanks to the surge in AI applications. Customers are reportedly struggling to secure supply due to this trend.

onsemi

Customers are struggling to secure supply of certain onsemi components. Reports indicate that order backlogs are growing as lead times expand.

Renesas

Renesas lead times are on a decline as availability becomes more stable.

Samsung

AI demand caused Samsung profits to surge, reversing the effect of chip profit losses in previous quarters. Read more here.

Samsung

Samsung may go on strike in the coming months if worker demands in South Korean based facilities are not met. Most of the employees will possibly strike work on the consumer electronics side of the business, so the impact to foundry or memory would be minimal. 

Samsung

DDR5
DDR4
DDR3

Samsung is shifting capacity away from DDR5 to support HBM production. Supply for DDR5, and eventually DDR4, will likely be cut over time and market reports indicate shortages may impact the market in late Q2.

Additionally, open market pricing is currently lower than official pricing but is expected to catch up as supply becomes more difficult to secure. DDR5 costs will likely be the first to increase.

Samsung reportedly sent out an EOL notice for DDR3 4G components. The last-time-buy is June 30th and last shipment date is December 31st. 

Samsung

NAND

Samsung is reportedly increasing NAND production to 90% capacity to support demand.

Samsung

Solidigm

SSD

As a result of mounting SSD demand, allocation is currently tight. In particular, high-capacity SSDs with AI applications are seeing concentrated demand. Lead times are on the rise, with Samsung DDR5 lead times in the range of six to eight weeks or more.

Seagate

Shortages are impacting Seagate product availability as overall booking lead times are up to six to nine months. Prices are already increasing and expected to continue rising.

SK Hynix

Memory

Memory products may face constraints in the near future as Tier 1 customer order volume is increasing. This development may lead to memory supply constraints.

Furthermore, high bandwidth memory products are reportedly sold out the year and 2025 is booking quickly.

The company also plans to begin mass-production of its new 12-stack HM3E chip in Q3 this year. Samples will be available to certain clients this month. 

SK Hynix

SK Hynix is expected to release new pricing within the next week.

Taiwan Semiconductor Manufacturing Co. (TSMC)

TSMC has announced new AI focused chips, which target applications for AI models and training, as well as enterprise AI usage.

Texas Instruments

Texas Instrument lead times are expanding as customers report issues with backlog.

Western Digital

Demand for Western Digital components is on the rise, which is expected to impact pricing through the next two quarters.