Industry Insider

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Last Updated 7/22/2024

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.

Supply Chain Trends and Impacted Manufacturers	Affected Product	Market Trend
Supply Chain Dynamics Samsung SK Hynix Micron	High Bandwidth Memory	The surge in AI demand is pulling manufacturing capacity towards the latest HBM technologies (HBM3 and 3E), limiting support for older memory products. As HBM3 and 3E become a greater focus for manufacturing, HBM2 and HBM2e is becoming less readily available. This trend is also impacting supply of ECC UDIMM and 128G memory modules. Furthermore, Micron's strategic decision to prioritize NVIDIA orders further limits the availability of HBM for other customers and market segments outside of AI.
Supply Chain Dynamics Samsung SK Hynix Micron	LPDDR5 LPDDR4	Availability of LPDDR5 is expected to tighten, with major technology companies forecasting a need to source from the open market in the first half of 2025. Additionally, pricing is on the rise despite variations in demand. LPDDR4 is seeing less market activity, but costs are projected to increase by 8%. Meanwhile, LPDDR5 is in high demand for AI applications, especially in AMD-based AI PCs. Micron has consequently announced a 15% price increase for LPDDR5.
All - Memory	NAND SSD	This quarter's forecast suggests a general uptick in memory component prices, with variations across manufacturers and products. Reports indicate Samsung will implement cost increases across its entire product lineup, with some sources projecting a 15% uptick. Due to robust demand, server components will likely experience the most substantial rise. However, the company's struggle with NAND wafer supply continues, leading to potential disruptions in SSD production. Conversely, SK Hynix's price increases this quarter will be more moderate compared to previous quarters, reflecting their strategic adjustment following aggressive hikes in recent periods.
Analog Devices Inc. Maxim		Lead times for automotive series are increasing and now exceed 35 weeks. Sources indicate that the manufacturer is unlikely to support Q4 deliveries.
Broadcom	IC	Market reports indicate that Broadcom may reduce IC production to focus on ethernet network adapters. This development comes as demand for network and server application products continues to rise. Lead times for the SS27 and SS29 are also extending and currently stretch over a year as AI interface ICs remain highly sought after. The strength in AI demand has pushed Broadcom to shift production to support AI-related products. This change will likely impact lead times for non-AI application products. Availability and support varies across customers as some report supply improvements while others receive decommitment notices on orders. Lead times are increasing for the BCM89 family and pricing is also on the rise for the BCM5 series, whose lead times are stretched beyond 54 weeks.
Infineon	IC	AI, data center, and server customers are struggling to secure supply of integrated circuit products like the BSC 026/074/430 / TDA series and IR3 series. However, supply is reportedly stable for other industries and products.
Intel	Mobile CPU	The N200 and N300 Mobile CPU are experiencing supply challenges and next month’s allocation is reportedly limited.
Micron	DRAM	Micron is reportedly reducing output for automotive grade LPDDR4X and LPDDR5X. The change in availability is expected to impact customer demand.
Monolithic Power Systems	IC	Server and enterprise computing customers are driving up demand for power management ICs, particularly the MP5 controller. Prices for these components, amongst others with AI and server applications, are expected to increase through July.
Murata	Passive	Since the earthquake earlier this year, customers have noted a persistent impact. Parts affected by the earthquake, such as the DLW and LQH series, have not fully recovered, leading to constrained production capacity. Priority allocation is currently being given to long-term demand from larger customers. For more information on the components impacted following the earthquake, read Fusion's analysis of the situation here.
NXP	MCU	Inventory levels are stabilizing thanks to increased demand, although automotive parts still face oversupply. Demand is expected to remain steady through the second half of the year, aiding inventory digestion. Lead times for MCUs and MPUs are between 13 – 23 weeks depending on the level of demand. Additionally, NXP is encouraging customers to adopt newer MCU products as they phase out older series.
Panasonic	Capacitor	Lead times are reportedly unstable and have risen up to 24 weeks for Panasonic tantalum and aluminum capacitors. Demand is largely focused on components used in servers, laptops, displays, graphics cards, data centers, and industrial control boards.
Renesas	IC	Renesas issued an EOL notice for the R5, R7, UPD7, and HD64 series. Last time buy is June 2025. Lead times are improving for Renesas R5F10 series but are still at a minimum of 15 weeks.
Samsung Micron	SSD	Samsung is reportedly prioritizing manufacturing of 7.68TB and above SSDs due to higher demand compared to lower terabyte products. Samsung memory product pricing continues to rise as customers report SSD costs have gone up by 30% since the beginning of July. Samsung is also currently playing catch up to Micron, as the company started shipping its 128G Monodie memory modules this month. Monodie is not compatible with the older 3DS memory technology. This means that systems designed for 3DS memory will not support the newer Monodie modules, requiring upgrades for compatibility. Speculation indicates that 3DS technology will be phased out by mid-2025, likely due to the shift towards more advanced memory solutions like Monodie.
Taiwan Semiconductor Manufacturing Co.		TSMC is expected to raise wafer prices, including 4nm and 5nm nodes, by 10% next year. This decision is motivated by mounting demand for the latest processors in smartphones, PCs, AI accelerators, and high performance computing. Read more about the market speculation here.
Western Digital	HDD	Western Digital is increasing pricing for its 18TB, 20TB, and 22TB HDDs by about 10%. 14 TB HDDs will see a price increase between 4 – 6%, while early reports indicate 24 TB HDDs may experience a dip in pricing. Western Digital customers are reportedly negotiating HDD supply contracts to accommodate the change in costs and updated lead times.
Xilinx	IC	Lead times for Xilinx products are down to 25 weeks as the company’s integration with AMD progresses. The XCFxxx, XCS2, XCS3, XCR3, and XC95 series went EOL last month, driving customers to seek support as they transition to alternative products.

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