Industry Insider

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Last Updated 4/15/2024

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 DRAM	While the amount of wafers lost because of the Taiwan earthquake is reportedly 5% or less, the disruption to production will influence the global supply chain. Initial reports on the Taiwan earthquake indicated that the memory commodity supply chain would likely feel the most significant impact. As companies continue to assess the possible damage to their facilities, NAND is less affected, while DRAM is more impacted. DRAM costs were already on the rise, and the disruption to manufacturing is expected to escalate the current pricing landscape further. For Fusion’s full report on the event, click here.
All Memory Manufacturers		LPDDR5 prices are expected to increase by at least 10%. Larger GB LPDDR4 components will also see a price increase due to heightened demand and constrained supply. Costs for lower GB components for DDR4, DDR3, and DDR2 will likely stay the same unless demand sees a sudden upside. For NAND Flash, costs are expected to increase by 15 – 20% for larger GBs and about 5% for smaller GBs.
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.
AMD Xilinx		Several Xilinx components (now AMD) are being discontinued, including the XC9500XL, CoolRunner XPLA 3, CoolRunner II, Spartan II, and Spartan 3, 3A, 3AN, 3E, 3ADSP Commercial/ Industrial (XC_ and Automotive (XA) product families. This EOL update is due to a declining run-rate and sustainability . The LTB is June 29th, subject to material availability. Orders placed on or after April 30th are subject to NCNR terms. The LTS date is December 24th, 2024. Read more here.
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		Many Broadcom components are packaged and assembled in Taiwan, which means the earthquake could have impacted availability. The full effect of the earthquake on Broadcom supply has yet to be confirmed.
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.
Infineon	IC	Demand for the TLE925x series is on the rise, likely due to their popularity in EV applications.
Intel	CPU	Market activity has slowed since February, which has led to Alder Lake prices declining slightly. Demand has similarly dipped for Meteor Lake.
Intel	Ethernet Chipsets	Supply constraints are impacting ethernet chipset series as Intel pushes customers to transition to newer versions. Customers are being pushed to transition from the I225 to the I226.
Intersil Renesas	Switching Voltage Regulator	Lead times for the popular ISL8xxx and ISL3xxx series switching voltage regulators are on the rise as customers report difficulty securing supply and receiving push-outs.
Kioxia	SSD	Kioxia’s CM7-V and CM7-R series are reportedly experiencing severe shortages as these are the company’s most popular drives.
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		Micron was initially expected to release new official pricing on April 10th. However, this is delayed due to the earthquake in Taiwan. As quoting becomes more readily available, costs are expected to increase more than originally forecasted. Prior to this event, the following cost adjustments were expected. • DDR4: Increase by 5% - 10%. • DDR5: Increase by 10% - 15%. • RDIMM: Increase by 20%. • DIMM: Increase by 35%. Standard lead times are around 6 – 8 weeks for regular items, while high demand products lead times are around 12 weeks or higher.
Murata		Murata has stated that it will take until December 2024 for production to fully recover from the Noto Earthquake.
Murata	Power Inductor	Murata is reportedly not accepting new orders for some MPNs in the LQH series, as they attempt to fulfill 2024 orders first. This was a series heavily affected by the Japan earthquake in January of this year. Lead times are over 53 weeks on certain MPNs.
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. The supply of A100s and H100s remains tight. Allocation for the A100 is currently unavailable for April, and customers are only receiving tentative schedules for H100s through May. A new list of U.S. export controls is expected to be released in April, which will likely impact the RTX 4090D and H20.
onsemi	MOSFET	Market speculation indicates that onsemi may be phasing out lower-power MOSFETs. While this has yet to be confirmed, the company has notably marked numerous said products as EOL over the last few years.
Qualcomm		Qualcomm was less impacted by the Taiwan earthquake due to the company’s preexisting strategy to relocate fab capacity to the U.S. and Mexico to avoid trade restrictions.
Realtek	IC	Due to an uptick in order volume from China, lead time pricing for specific ethernet ICs is rising. Delivery of Realtek components manufactured in Taiwan will reportedly be delayed as a result of the earthquake, and there may be upcoming shortages.
Samsung	Memory	Samsung is currently holding all orders until the market landscape is assessed after the Taiwan earthquake. Given the circumstances, it's important to note that overall costs for memory components are expected to increase by up to 25%. Market intelligence reports indicate that RDIMM costs may be increasing by 30%. SSD costs will likely rise by 25 – 40% for lower-capacity products and 30% - 40% for higher-capacity products. GDDR6 costs are also expected to increase, but the exact amount is unconfirmed as Samsung will revisit memory pricing after the earthquake in Taiwan. DDR4 costs may increase by 20%, and DDR5 prices may increase between 15% and 17%.
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 HDD	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. Lead times for larger capacity HDDs are increasing, with some booking lead times up to at least 26 weeks. Seagate recently announced an official price increase of 5% for all models.
SK Hynix	DRAM D3 D4 SSD NAND	Consumer SSD costs are expected to rise by 15% in Q2. SK Hynix quoting was on pause until further notice due to the earthquake in Taiwan. Initial reports indicate that capacity for NAND, DRAM, and HBM may be impacted.
Skyworks	IC	Memory IC supply may be constrained following the earthquake, as components were being transported through the impacted area when the event took place.
Solidigm	SSD	Solidigm pricing will reportedly increase by 30% or more in Q2. Solidigm SSD prices are expected to increase in May.
STMicroelectronics		Official reports are still pending but lead times may extend due to the earthquake.
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. TSMC evacuated production lines at certain facilities after the earthquake that impacted Taiwan. The temporary shutdown in production, which has reportedly almost returned to full capacity, may have a concentrated impact on the enterprise SSD and DRAM markets.
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.
Western Digital	HDD SSD Flash	AI demand has caused an increase in HDD pricing. Western Digital has confirmed shortages of HDDs and SSDs because of the wave of demand. Price increases are expected for flash and HDD as lead times continue to extend. Read more here.
Winbond		Quoting was reportedly paused due to the earthquake in Taiwan.

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