The Greensheet: June 2025

Key Themes

• Tariff Developments Add Complexity to Sourcing: A new multi-layered U.S.–China tariff structure is expected to take effect, while exemptions remain in place until August. Buyers are navigating increased documentation checks and preparing for possible Section 232 tariffs on chips and equipment.
• Memory and Storage Prices Increase Across the Board: DDR4 and DDR5 module pricing rose due to last-time buy deadlines and demand from hyperscalers. SSD prices also trended upward, driven by reduced allocations and potential end-of-life announcements.
• Component Shortages Continue in AI-Related Categories: Supply constraints persist across GPUs, server CPUs, NICs, and high-spec passives as AI infrastructure builds strained production. Lead times are extending, primarily in the automotive and industrial segments.

Product Updates

Integrated Circuits

Price Increases, Tight Allocations, and Shifting Production Priorities

• TI implemented price hikes for select low-margin products, effective around June 15, with increases ranging from 15% to 24%. Changes primarily impact C2000™ MCU, isolation products (DSPxxx, ISOxxx, UCCxxx series), and amplifier products (MSPxxx, LMxxx series).  
• TI Automotive ICs lead times stretched to 20+ weeks for TCAN/Q1 series due to production bottlenecks.
• STMicro MEMS Sensor allocation tightened as production pivots to automotive and industrial clients.

CPU

Delayed Recovery and AI Server Demand Continue to Stress Supply

• Intel's Raptor Lake U-Series supply recovery is delayed to late 2025, while the P-series saw a modest improvement. 
• AMD EPYC Turin faced tightening allocation for AI servers; Milan prices rose 10% amid DDR5 transition delays. 
• Qualcomm Snapdragon X Elite gained traction in AI PCs, pressuring Intel’s mobile CPU share. 
• 32-core AMD Server CPUs were expected to see price improvements.

GPU

Demand Outpaces Supply for High-End and AI-Focused GPUs

• RTX 5090 demand remains strong while the supply is catching up; the supply gap is still the largest among the RTX 50 series.
• RTX 5060 TI 8GB & 16GB – the 16GB version was more favored by end users compared with the 8GB version; shortage was seen on the 16GB with longer lead times on shipment to distributors. 
• NVIDIA Blackwell Pro 6000 workstation GPUs (96GB) became available in the Japanese and Indian markets at $ 97,000–$ 98,000; server editions are delayed until August. 

Networking Cards

Ongoing Shortages and Regional Policy Disruptions

• • Mellanox CX-7 NIC cards have a supply issue, mainly with the 200GB dual-port and 400GB single-port models.
  • Cutting down on the backlog of NICs from Tier 1 tech firms due to restrictions by the US government on H2O entering China. The open market is still seeing a supply gap and continuous shortage, and prices remain on an uptrend. 

Memory (RDIMM / DRAM)

EOL Pressures and Hyperscaler Demand Push Prices Higher

• Samsung’s LTB window for DDR4 EOL closes on June 30; the price of 32GB modules continues to increase. 
• Prices of DDR5 96GB/128GB are estimated to rise by 15% QoQ as hyperscalers lock supply. 
• The price of consumer-grade 4GB DDR3 are estimated to increase soon.
  

Storage (SSD/HDD)

Allocation Changes and EOL Announcements Disrupt Supply

• Various customers reported that SSD pricing is expected to increase by 5–10% in July.
• Micron's 7450 Series SSDs are seeing increasing prices and demand due to a potential End-of-Life (EOL) announcement from the manufacturer.
• Demand for Micron's 7500 Series gained traction as allocations of the 7450 were reduced.
• Enterprise SSD prices are projected to increase by more than 10% QoQ in Q3 2025 due to growing procurement capacity.

Passives 

Lead Time Volatility Amid Spec Shifts and Regional Demand Surges

• Primary demand remains focused on high-spec products for AI and server applications. 
• While Panasonic maintained tight lead times, Kemet and Nippon Chemi-Con also saw significant redirected orders, causing further delays in the production of Aluminum, Polymer, and Tantalum Capacitors. 
• China's EV sector continues to lead global demand for automotive-grade passive components. However, the market currently has a surplus, resulting in slow customer pull-through from distributors.

Tariff Updates

• A new framework deal was reached during the June 9th London talks. The U.S. imposed a total 55% tariff on Chinese imports comprising a 25% first‑term tariff, a 20% "fentanyl" levy, and a 10% reciprocal tariff.
• The U.S. Commerce Department initiated a Section 232 investigation focused on chips and semiconductor equipment, aiming to protect U.S. supply chains, with tariffs possibly reaching 25% or more over the next year. 

Current State 

• Tariffs remain paused (30% U.S. / 10% China), but industry skepticism grows as the August 12 deadline nears. 
• Expected delays due to China's "Country of Diffusion" policy, complicating wafer sourcing. 
• Increased documentation checks for components with Chinese aluminum or rare-earth content (e.g., passives, connectors).
  

Manufacturer News and Company Updates

• Nvidia is reportedly developing a new AI chip for China that meets export controls. Following the export ban on its H20 chips to China, Nvidia is reportedly designing a Blackwell-based alternative, dubbed B30, with multi-GPU scaling capabilities.
• Intel Reportedly Launching Next-Generation Xeon CPUs in 2026: Intel is preparing to expand its data center portfolio with next-generation Xeon processors, as confirmed by Michelle Johnston Holthaus, CEO of Intel Products, who stated that Diamond Rapids and Clearwater Forest are slated for a 2026 release.  
• GlobalFoundries has announced new plans to dedicate $16 billion to expanding its U.S. chip production. The largest contract chipmaker in the U.S., GlobalFoundries, made the decision in response to "unmet demand" from local clients such as Apple and Qualcomm. 
• AMD Manages to Shift the Dynamics of Data Center Markets in Its Favor: AMD has managed to scale up to a 50% market share in the server CPU segment in under a decade, largely credited to its competitive EPYC CPUs. 

Supply Chain Trends

• Global semiconductor equipment billings rise 21% in Q1 2025: The industry association serving the global semiconductor and electronics design and manufacturing supply chain reported that global semiconductor equipment billings increased 21% year-over-year to $32.05 billion in the first quarter of 2025. 
• Kioxia Plans to Double Output in Five Years, Ramping Up NAND Flash for AI Data Centers: Japanese NAND flash memory giant Kioxia announced its mid-to-long-term business plan on June 5, aiming to double its production capacity by fiscal 2029 compared to fiscal 2024 by expanding production lines.  
• U.S. extends China GPU tariff exemption until August 31: The Office of the U.S. Trade Representative (USTR) announced that it would suspend the planned 25% Section 301 tariffs against China, which include parts containing chips and semiconductors, such as GPUs, motherboards, and solar panels, for an additional three months. 
• TSMC's enterprise demand is cascading to impact other diverse chipmaking segments: TSMC's demand for CoWoS chipmaking materials has become so great that it is causing material shortages in the memory market. 
• Samsung and Micron are rumored to exit MLC NAND flash: Both memory giants are shifting away from low-capacity MLC products, sparking price hikes and a surge in orders.

Inventory Trends

EMS & OEMs
Inventory positions diverged in Q1. Some EMS players improved working capital efficiency, while others faced rising inventory tied to shipment delays and soft demand in PCs and data centers. Several OEMs maintained tight controls, though a few increased stock as a hedge against policy uncertainty.

Component Manufacturers
Major chipmakers reported mixed results. Automotive and IoT demand supported drawdowns at select suppliers, while others saw modest increases due to uneven order patterns. Channel inventories declined in Asia, but finished goods levels remain elevated in certain segments.

Distributors
Inventory reductions remain a challenge. Some distributors built excess stock in response to delayed projects and paused customer demand, particularly in data center infrastructure. Most expect normalization to stretch through the second half of the year.

Automotive
Inventory levels started to stabilize. Leading semiconductor suppliers reported progress in digesting excess stock, although downstream OEMs continue to hold higher inventory heading into the second half of production cycles.

Data Center & Hyperscaler
High demand for AI infrastructure supported inventory clearance at key suppliers. Memory producers are signaling tighter stock levels by year-end, while system integrators built inventory ahead of projected AI rollouts.

Industrial & Automation
Inventory conditions in the industrial sector remain mixed. Select automation firms reported stable or slightly declining channel inventory, while others expect adjustments to continue through Q2 amid regional demand variability.

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