Market Intelligence
April 2, 2024

Industry Insider

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Last Updated 4/1/2024

The Industry Insider is a bi-weekly collection of direct input from Fusion suppliers and customers on what they see and hear related to changes in the supply/demand balance across the electronics industry. 

See the latest updates below in bold.

For more market intelligence, check out our quarterly analysis of manufacturer earnings reports here  

Manufacturers

Affected Product

Market Trend 

 

All

 

Market reports indicate that enterprise-level product prices will increase from the end of March through early April. The anticipated increase is around of 20%.

 

All

 

Market reports indicate that lifecycle management will be key in the coming months as EOL notices have increased recently. Customers are reporting influxes of notices on parts that are single sourced. Affected categories include:
•    ICs
•    Chip memory
•    Thermistors
•    LEDs
•    Connectors

 

All

Capacitors

Due to rising demand from the defense industry, supply of capacitors may become constrained. Kemet and Littelfuse are top of mind in this arena due to their defense applications.  With the U.S. Department of Defense budget of $849.8B recently released, industry demand is set to increase further. 

 

All

NAND

NAND flash prices will reportedly increase 20% in Q2. Manufacturers will issue official announcements at the end of March, and the new costs will go into effect at the beginning of April. 

 

All

SO-DIMM

The memory standard for laptops is changing as customers' preferences begin to shift away from SO-DIMM. Customers are currently making the move to PC DIMM 4800 speed products, although this may be a temporary transition as others may move directly from the 3200 speed to 5600 speed. 

Based on forecasts, the majority of customers will likely have adopted the D5 5600 and 6400 by year end. This trend will also push customers towards CAMM modules. Read more about CAMM here

 

AMD

CPU

The market is maintaining a steady balance between supply and demand, and lead times are generally one to two weeks. 

However, booking lead times for the Ryzen 9 7950X processors are longer and have increased from two months to three to four months, indicating a potential constraints. Similarly, supply of the EPYC 9384X is also short, with lead times ranging from four to five weeks.

 

AMD

Intel

 

Alongside China’s push to become technologically self-sufficient, AMD and Intel components and applications will be phased out from government computers by 2027.

 

Analog Devices 

 

ADI lead times may be increasing in the near future as tier-1 customers report difficulty with lead-time support. This could be a signal for upcoming lead-time extensions trickling down to more users.

 

Analog Devices 

IC

Market analysts are signaling that IC shortages could be on the horizon. The catalyst for constraints is the rise in global demand for connected applications in vehicles, which are using more and more components.

 

Broadcom 

IC

Customers with long-term service agreements and contracts with Broadcom are reportedly entering a renegotiation period, which may impact numerous customers' price, volume discounts, and allocation.

 

Broadcom 

IC

Network application parts are currently experiencing shortages due to heightened demand. Lead times for highly constrained IC products are over 50 weeks. 

 

Intel

CPU

Market activity has slowed since February, which has led to Alder Lake prices declining slightly. Demand has similarly dipped for Meteor Lake.

 

Kioxia

NAND

Kioxia has announced that its NAND Flash fab will return to 90% capacity, to better align with current demand. Read more about Kioxia’s capacity management here.

 

Lattice

 

Lattice is reportedly increasing unit prices to support capital investments. The official price increase has yet to be officially announced. 

 

Mellanox

 

Networking cable and switch prices are expected to increase in Q2 due to an uptick in demand stemming from the beginning of Shenzhen’s High-Performance Computer Cluster project.  

 

Mellanox

NIC

Unstable supply has plagued the MCX6 and MCX7 series since Q1, and this situation has continued as demand increased following the Lunar New Year. As these series’ prices increased, demand shifted to EOL products like the MCX4 and MCX5 since the costs were lower. However, remaining availabilities have quickly depleted and older series like these will not be an option for much longer once supply has exhausted.

 

Micron

 

Costs are expected to increase for cloud and data center products as more orders are coming in from customers within these verticals and forecast demand is healthy. 

 

Micron

SSD

Micron and Samsung have issues 15% - 20% price increases on SSDs.  

User adoption of the 9400s, particularly high capacity 7.6TB – 30TB SSDs, is increasing as customers seek more efficient products for data center applications.

 

Murata

 

Murata has stated that it will take until December 2024 for production to fully recover from the Noto Earthquake.

 

Nvidia

 

Nvidia recently unveiled its Blackwell Platform, which promises companies the ability to run real-time generative AI at 25x less cost and energy consumption than the H100. 

 

Nvidia

GPU

With consistent demand for Nvidia GPUs, pricing continues to spike. The 4080 Super and 4070Ti Super have seen concentrated price increases, as heightened demand  cause supply constraints. In addition to unexpected trends in cryptocurrency demand, limited raw materials and underproduction have led to a reduction in available supply. At a minimum, lead times for product delivery now start at one and a half months.

Furthermore, lead times for the A100 have increased as delivery schedules have been delayed to November. This update is the result of Nvidia production shifting  support to the H100 PCIE and NVLink, and the extra capacity necessary for the upcoming B100 and H200.

 

Nvidia

GPU

Pricing for Nvidia’s Quadro series, excluding the RTX 5880 ADA, has increased by around 10%. Prices are also expected to rise for the GeForce series, with pricing for the RTX 4080 Super, RTX 4070 Ti Super, and RTX 4070 Super expected to increase by 5% - 10%. 

Additionally, cryptocurrency trends are influencing availability for GPUs. Should demand continue to rise, GPUs will likely face further supply limitations. 

 

onsemi

 

Market reports indicate that onsemi may be planning to exit the small signal MOSFET market and other discrete commodity segments. This decision stems from the company’s desire to focus on its automotive business and products, as it has maintained a top position in automotive LED lighting, sensing, and innovative technology like silicon carbide. There has yet to be an official company announcement regarding this intelligence.

Furthermore, onsemi has reportedly struggled to support customers’ lead time orders, which may support the theory that the company is working to transition its business.

 

Realtek

IC

Due to an uptick in order volume from China, lead time pricing for specific ethernet ICs is rising.

 

Samsung

DDR5

Customers have reported issues with LPDDR5 chips, as these tech nodes are also used in high-bandwidth memory products. Samsung is reportedly prioritizing HBM production and recently increased its shipping volume targets.

Based on the mounting demand for DDR5 128G TSV and DDR5 64G, Samsung is reportedly planning to launch new memory modules to improve performance and encourage further adoption of the 128 TSV. Currently, customers who adopt this component have to upgrade all of their systems.

 

Samsung

DRAM

SSD

According to market analysts, pricing for Samsung SSDs for desktop PCs is expected to increase in April. SSD costs are expected to rise by 20% —  30 %. Allocation is reported to be increasingly difficult on high-capacity SSDs.

Demand for Samsung SSDs is already rising as allocation for the PM9A3 and PM883 series has been constrained for some time. The upcoming price increase may influence customer’s buying behavior as they try to capture cost savings ahead of the cost adjustment.

Additionally, shortages of DRAM are expected to worsen alongside rising prices, with constraints expected to further expand in the second half of 2024.

 

Samsung

DRAM
RDIMM
NAND Flash

Market reports indicate that NAND pricing will continue to increase this year, primarily based on the demand from the consumer market, as more customers seek on-device AI applications for their laptop, phone, and service technology upgrades.

 

SanDisk
Western Digital

eMMC
NAND

eMMC NAND products are experiencing market shortages. Market reports indicate that the scarcity may be caused by raw material constraints, which are causing production issues. The separation of Western Digital and SanDisk’s NAND business unit is an added complication.

 

Seagate

SSD

Seagate is reportedly focusing on enterprise NVMe SSD solutions. There are no plans to develop SAS SSD follow-on products for the Nytro 3050 SSD series and Nytro 2050 SSD series.

 

SK Hynix 

DRAM 

D3 

D4 

SSD

Pricing continues to rise, with another hike expected to hit in April. Booking prices for DRAM are especially high, although general market pricing is stabilizing as supply improves. Market speculation indicates that Samsung may increase the price for DDR5 64GB to 30% in April. 

D3 costs in particular are expanding, despite weakening demand, and are expected to increase by 10% - 20%. Alternatively, D4 demand remains strong. 

Consumer SSD costs are expected to rise by 15% in Q2.

 

Solidigm 

SSD 

Pricing for consumer SSDs is expected to increase by 10% next quarter. Enterprise SSD price increases will be around 20%. 

Solidigm pricing will reportedly increase by 30% or more in Q2.

 

Supermicro 

 

Production capacity for Supermicro cannot meet current demand, and delivery times for in-demand products are up to two to three months. The delivery time for highly constrained products has stretched to six months. 

 

Texas Instruments 

 

Contract pricing is reportedly delayed for some customers, which is leading to possible delays for project production timelines if this issue persists. 

 

Taiwan Semiconductor Manufacturing Co. (TSMC)

 

TSMC is reportedly planning to build a new assembly factory, which is part of the company’s plan to explore assembling capacity for wafer CoWoS. This development will help support the increasing wave of demand for AI.

 

Vishay

Resistors

Resistor lead times are out to 100 – 150 weeks in many cases. A contributing factor for this trend is demand coming from the aerospace and defense industry. 

 
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