The Industry Insider

Adaptec

RAID Controllers

Allocation for RAID controllers has become constrained as demand has steadily increased.

Advanced Micro Devices Inc.

CPU

AMD is shifting its manufacturing focus to support production lines with AI applications. This strategy is mainly targeting Xilinx products.

Gaming console clients have reported issues securing allocation for AMD 7840U as AMD works to assign more resources to these production lines. Still, the increasing availability will likely be dedicated to supporting AI customers since AMD is attempting to increase its market share in this industry.

AMD is still struggling with heightened inventory, which has bene a persistent issue since the end of last year. However, the company hopes to move excess to distributors warehouses as negotiations with customers willing to buy their excess are ongoing.

All

CPU

GPU

SSD

According to market experts, demand is forecasted to improve in Q3 and Q4 for the CPU and GPU market. This is largely due to the uptick in demand coming from the AI market. However, memory market forecasts are not optimistic, and prices will likely continue to drop.

While there has been no official notice or confirmation from manufacturers, market forecasts indicate that a price increase will affect SSDs in Q2. Customers are reportedly playing a waiting game to see if current costs will decrease further before placing orders.

ALL

IC

Inventory remains inflated for end customers, channel and EMS within the analog IC supply chain. The strongest end markets have been automated test equipment, military and aerospace, medical, energy and other industrial verticals. However, demand within these markets is beginning to slow.

Geographically, European markets was a primary growth driver for Q1 but has likely peaked and will decline in Q2 and Q3. Demand within China has not recovered as expected and will continue to be soft into Q3. Meanwhile, demand within the United States is steady but inventory is elevated and only increasing.

ALL

IC

Lead times are improving across most lines, but there are growing concerns over distribution margins as high-priced orders placed in 2021 and 2022 have started to come in. 

ALL

CPU

Chromebook demand is trending upwards within U.S. markets as the consumer market shows minimal signs of recovery.

ALL

IC

Lead times are extending for components necessary for industrial products and advanced automation systems. Lead times were previously affected by the IC shortage and have only just begun to improve. If there are cancellations, allocation moves to the next existing backorder. Because of this, there is not much stock available in the open market. 

ALL

Finished Products

While many parts are on production lead times of over 30 weeks, safety terminals have the longest lead times and are over a year.

ALL

DDR5

RDIMM

While prices in the memory market are low, this is expected to change as forecasts indicate that pricing will gradually rise moving forward. 

DDR5 supply is steadily improving for RDIMM capacity 64GB and below. However, DDR5 RDIMM 128GB and 256GB supply is limited and pricing has practically doubled the official pricing.

Pricing for 64GB and 32GB is fluctuating as customers hesitate to commit to purchase orders. This is a risk, as those betting on cost savings opportunities increasing at the end of the year may see pricing increase instead of decrease if demand improves.

Analog Devices 

 IC

Supply for the ADUM and AD8XX series is improving, and supply is available at a competitive price.

Alternatively, constraints are affecting the ADSPXXX and LT/LTCXXXX series. This is mainly due to these parts not being commonly used in various industries; thus, demand is limited. Due to this, distributors are not ordering buffer stock for customers so when demand surges, those that do use these parts must navigate shortages.

Broadcom Inc. 

Converters

BCM series supply is experiencing some constraints, but overall supply for Broadcom has improved. Common parts are the easiest to find. Alternatively, some automotive application parts, like the BCM89 series, are still under manufacturer control.

Cosel

Cosel has seen shortages continue for over a year, with only minimal improvements. Now that capacity issues are affecting supply, lead times have extended even further, and the lengthy backlog of orders is extensive. Customers have been forced to wait, as they are unwilling to switch to other brands because of quality concerns. 

China is focused on using more local brands, like Mornsun and Meanwell, for DC – DC module supply.

This shift has already changed the market landscape for Cosel. As of ten years ago, Cosel maintained a relatively large market share while Meanwell only controlled around three to five percent of the market. However, Meanwell’s share has steadily grown and is now ten times larger than Cosel’s market share. Meanwell benefits from having lower costs and has kept lead times lower. Cosel has struggled to come to a consensus on whether lead times have an impact on order volume, so it has allowed Meanwell to maintain its competitive edge.

Cosel

Converters

Demand for DC – DC modules, and consequently lead times, are extending in Japan. Alternatively, AC-DC lead times and supply have improved.

China markets mostly have demand for AC – DC modules and the market for DC – DC modules is much smaller. This is due to the ease associated with AC – DC modules, which are seen as more convenient due to their power supply requirements and less complex builds.

Isolated DC-DC converters The latest lead times for onboard series are:

• Four weeks for MH series
• Five weeks for DPF series
• Eight weeks for MGFS80 series
• 13 weeks for MGFS40 series
• 23 weeks for DBS series

Cosel 

Switching Power Supply

The latest lead times for Chassis series are:

• Six weeks for AEA series.
• 27 weeks for PJMA series. 
• 31 weeks for AME series.
• 38 weeks for LHP series.
• 43 weeks for LHA series.
  

The onboard type switching power supply SU series is the most constrained, and lead times are over one year.

Cypress Semiconductor 

Infineon

MCU

Following a fire at one of its plating facilities in China, Infineon and Cypress supply may see increasing constraints as production works to replace any damaged products. News of the fire has been minimal, so the extent of the impact has yet to be fully determined, but early predictions indicate that recovery will take two months or less as Infineon looks to other sources to continue production. Depending on which parts have been affected, customers may turn to alternative sources for suitable replacements.

Automotive supply from Infineon is forecasted to feel the effects of the fire for at least one month. MCUs like the SAK and SAL series were already in short supply, with the SAK series supply particularly unstable as some customers receive orders in batches while others struggle to find available parts within the open market. The S912 and S6J3 series are also amongst those affected by the fire. 

While it has yet to be confirmed, the Traveo I and II, Juno and Amber products may also have been impacted, but a full recovery of lost output is still pending. Cypresses Traveo T2G series was previously constrained and had lead times over 52 weeks, which could stretch further due to the fire. OSRAM parts like the TOPLED may also feel some effects.

Honeywell

Snap Action Switches

Orders of snap action switches are reportedly delayed to 2024. This is not a common part, but the customers that do utilize it have been forced to go line down for certain products because of the delay.

Infineon

IGBT

Demand for IGBT product lines like the IPW, IKW and IPP series has increased since the beginning of Q2, largely because of the robust demand for photovoltaic products. The boards in these products use four to eight IGBT high-power tubes.  The demand for IGBT high-power tubes will likely continue to increase, alongside pricing, through Q3. The small number of shortages will also increase if supply cannot match order volume.

Infineon

MOSFET

MOSFET field effect tube product lines, like those for the IRF, IRFR, IRLML, BSC and IPG series, are usually dedicated to consumer products, low voltage and low current field effect tubes. Most of these have heightened inventory levels, as well as low demand and pricing. For these products, pricing will likely trend downwards from now through the end of Q3. Pricing for certain MOSFETs have already fallen to historic lows.

Infineon

MCU

IGBT

Demand is still high for certain automotive series, such as the CY91 and CYT2B series. These will likely be discontinued by the end of the year, so demand will continue to climb as supply becomes less readily available. Other high demand automotive parts include MOS and IGBT products, which are also used for energy storage and industrial control applications. Distributors backlog and stock are restricted to end customers and there has been limited available allocation for open market supply.

Lead times for the CY7C, CY9C, S21GL and S29GL series have reportedly stretched over 40 weeks. The extended lead times are the result of increasing demand from automotive customers, particularly within the Korean market. Distributors are proceeding with caution until visibility into available supply improves, so open market supply of these parts is currently low.

Intel

Chipset

A price increase of approximately $5, around 10%, will be going into effect on June 1^st for the following parts:

• EY82C621 Platform Controller Hub
• C621A Chipset (lntel EY82C621A PCH)
• C622 chipset (Intel EY82C622 PCH)
• C624 chipset (Intel EY82C624 PCH)
• C625 chipset (lntel EY82C625 PCH)
• C626 chipset (Intel EY82C626 PCH)
• C627 chipset (lntel EY82C627 PCH)
• C627A chipset (lntel EY82C627A PCH)
• C628 chipset (lntel EY82C628 PCH)
• C629 chipset (lntel EY82C629 PCH)
• C629A chipset (lntel EY82C629A PCH)
• C741 Chipset, FC-BGA15C, T&R

There will also be a price increase on the H610 chipset, as the special pricing currently in effect will be removed from the next quarter onwards.

Intel

 CPU

Special discounts for desktop CPUs are reportedly only available to OEMs working directly with Intel. The discount duration depends on the relationship with the OEM, meaning the deals could be discontinued at a staggered pace. The open market may consequently see an uptick in demand as these customers look for other avenues to secure cost savings.

The recently announced X86 Domestic CPU by Powerstar has been unveiled as a rebadged Intel 10 Gen chip. Because of this, Intel’s partners may require Intel to increase its anti-counterfeit certifications and measures to avoid this in the future. Read more about the situation here.

Intel

FPGA

Intel’s Enpirion line, which went EOL in October 2020, is reportedly still being produced on a limited basis. This came after last time buys caused a major uptick in demand. Due to the heightened interest in the market, Intel is selling parts at a markup as high as three times the original price. Lead times are around 50 weeks.

FPGAs belonging to the Cyclone V and IV series are seeing supply constraints, with one source reporting Intel decommitted on their order and delayed delivery until January 2025. Forecasts indicate that products within this family could see shortages in Q3.

Intel

CPLD

Allocation for complex programmable logic devices (CPLD) is improving with customers reporting that they are receiving sufficient supply.

Melexis

Sensors

Supply of particular position sensors is short in the market, with minimal improvements not expected until July. 

Melexis lead times are commonly quoted at or above one year for high demand parts.

Microchip Technology

Ethernet ICs

Standard lead times for the ATXMEGA-xxx are 52 weeks (about 12 months).

Prices will be increasing by 5 – 10% for MCP17-xxx and MCP25-xxx.

Customers are increasingly reporting issues with securing Microchip supply, especially for Microchip’s AT27C2048-55JU and AT27C1024-45JU parts. Lead times for both EEPROM chips are around one year.

New orders are now subject to NCNR PSP terms and refunds are not issued if parts have already entered the shipping phase. Despite customers being told the parts have shipped, Microchip is hesitating to confirm order arrival dates.

Additionally, some customers have had to escalate supply issues with the AT25160B-SSHL-T to Microchip direct, which has resulted in having to pay a premium in order to secure allocation.

Pricing and supply are unstable for Microchip as customers increasingly report difficulty with lead time confirmation and delayed order delivery. The ATS series has been particularly delayed, and lead times for microcontrollers have stretched over 20 weeks. Other high demand parts are seeing lead times at or above one year, but the VSC7448 series is especially short and lead times are over 108 weeks.

Due to the supply challenges and fluctuating prices, customers are increasingly looking for alternative products from other manufacturers or moving to the open market.

DRAM

NAND

NOR

SSD

Following China’s sanctions on Micron parts, customers are waiting to see if there will be a significant impact on their business. As of now, the overall effect is minimal, but China’s market has felt most of the impact. However, rumor has it that pricing for Samsung and SK Hynix could increase in the future as customers turn to these companies for alterative products.

NVIDIA’s CEO has spoken out against the U.S. sanctions on business in China, stating that the U.S. could see it’s market share of the electronic component supply chain suffer. The alternative market within China is not able to meet the needs of customers, and the effects of the A100 and H100 restrictions are starting to materialize as lead times have increased across the supply chain. Read more here.

NVIDIA

A100

H100

Following an alert that A100 components were being sold to restricted regions, NVIDIA froze all A100 GPU shipments until May 29th. A800 GPU shipments have also been suspended as NVIDIA works to negotiate better terms with the United States in relation to the regulations being placed on advanced technology. A100 and H100 are now consequently only available under NCNR agreements.

NVIDIA manufacturers will be holding higher inventories until the company allows shipments to be released once more.

A100 40GB GPUs were starting to see improved supply, as demand has slowly shifted to focus on 80GBs. Customers looking for cost savings opportunities are encouraged to take advantage of the situation as pricing for 40GBs is on a downward trend.

NXP is strictly controlling supply and orders by requiring all orders to be submitted to NXP directly as opposed to distributors, and delivery dates are consequently only being confirmed directly by the manufacturer. However, delivery dates are not guaranteed and are intended to be used as a reference. 

NXP

MCU

Digital Signal Processors and Controllers

MCU supply is constrained and causing lead times to fluctuate between 26 and 52 plus weeks, depending on how heightened the demand is for certain series. Costs are also on the rise for certain microprocessors, whose lead times are around 26 weeks.

Additionally, a source has reported that there has been a rise in issues with digital signal processors and controllers.

Onsemi

MOSFET

Supply is constrained for certain MOSFET 60V products and lead times have been quoted at over a year.

Onsemi

Schottky Diode

Lead times have stretched for the Schottky diodes (MBRSXXX)  series, with some lines extended past one to two years.

Onsemi

Switching Controller

A source has shared that despite demand being on a downtrend recently, a shortage could be on the horizon for notebook components like the NCP4 and NCP8 series. This situation stems from demand being heightened last year and supply struggling to fulfill the backlog of orders.

Supply availability has been fluctuating for Renesas, as customers have had to utilize alternative sources to secure parts and lead time confirmation.

To increase capacity and global supply, Renesas is investing approximately 48B yen to install manufacturing equipment in three different Japan fabs. This, combined with Japan fabs ability to provide back up for other production lines, should create a more stable inventory of semiconductors. In accordance with this plan, Renesas’ Ibaraki fab will introduce 40nm manufacturing equipment in February 2025. The Kofu fab in Yamanashi Prefecture will introduce thin film deposition equipment in August 2026, and it has the ability to import the equipment of the Ibaraki fab within one month in case of emergency.

In addition, following a drop in pricing within certain markets, Renesas is reportedly shifting its business to China in an attempt to prevent further price erosion.

Renesas Group

MCU

An oversupply of MCUs has caused multiple distributors to sell supply at lower costs. This has pushed Renesas to issue statements discouraging this action. In addition, the company is implementing measures to restrict excess business between end users. In addition, supply for certain microcontrollers in the H8/300H series is unstable as lead times are not available at the moment. Pricing within this series is consequently trending higher.

Renesas Group

SRAM

An aerospace supplier has reported issues with SRAM delivery, which has been delayed by several months and caused the customer to go line down. In general, reported lead times are about 36 weeks.

Samsung

DDR5

Samsung has resolved the PMIC issue effecting 64GB 5600 DDR5 modules and has reshipped orders to certain customers. However, other customers are still waiting on supply and have been reporting supply issues with DDR5 128GB and 256GB due to Samsung’s poor yield issues. Pending further inspection and no additional issues, Samsung will begin regular shipments again. It is also worth noting that the PMIC issue has had a trickledown effect for other manufacturers who utilize these parts in DDR modules.

Outside of these supply constraints, demand has mostly remained stagnant. Larger phone makers have cut production by 20 – 30% and forecast visibility is poor. Samsung manufacturers have been requesting that distributors take in more goods for special pricing, but pricing and terms surrounding discounts are still not favorable. If production cuts continue and demand stays weak, prices will likely stay the same.

In addition, pricing is fluctuating for Samsung DDR4 RDIMM, DDR5 RDIMM, PC DIMM DDR4 and PC DIMM DDR5.

On June 10th, the following price increment will go into place:

• Desktop / NB will increase by 15%.
• Nearline drives, including EXOS and enterprise HDD, will increase by 10%.
• Ironwolf (NAS HDD) from 1tb to 6tb and 10tb will increase by 15%. 8tb, 12tb and above will increase by 12%.
• Ironwolf Pro series will increase by 12%
• Skyhawk (surveillance HDD) from 1tb to 6tb will increase by 15%. 8tb and above will increase by 10%.

There will be no changes to Mission Critical Drives at this time. Seagate will also be increasing prices for HDD, in preparation for demand recovery that should be just around the corner in the second half of the year. Read more here.

DDR5

RDIMM

Customers seeking supply for DDR5 RDIMMs are receiving very little stock allocation. Supply of DDR5 32G and 64G is currently short.

STMicrocontrollers

MCU

Supply of the 32F4 8-bit series is experiencing ongoing delays in delivery and backlog scheduling. The reason provided is that STM’s headquarters is prioritizing certain customer’s delivery schedules and causing delays for other components as a result. The H7 and F7 series, along with automotive parts, are currently receiving the most support. However, despite these concentrated pockets of constraints, overall lead times continue to improve across lines and distributors have noted that more STM products arrived in Q1 than in the entirety of the last two years.

STMicrocontrollers

Demand is on a downtrend for MCU series F0, F1 and F3 due to customers having sufficient supply. Lead times are eight weeks at best, and over 20 weeks at works. 
The drop in demand also stems from customers seeking cost savings opportunities, as the competition’s prices for alternative parts are lower on average.

TDK Corporation

Automotive Capacitors

Supply constraints are affecting deliveries of automotive grade passives. In particular, the CGA series is experiencing shortages.

TDK’s delivery schedules have reportedly been delayed by one to two months due to issues with production. Customers who are struggling with delays have turned to the open market to secure supply.

The production problem responsible for causing delays stems from outdated equipment, which TDK plans to replace next year. The replacements would align with TDK’s planned capacity expansion, which the company hopes will bring lead times down from two years to one or less.

Currently, automotive capacitors have already started to see lead times improve. Standard lead times are around four to eight weeks and only select items will be subject to allocation.

Texas Instruments

Voltage and Switching Regulators

Ethernet ICs

Texas Instruments continues to experience execution and supply issues, which have been blamed on shifting available inventory between end markets. Plus, new testing capacity ramp up has been slower than originally anticipated.

While there has yet to be an official statement, Texas Instruments is supposedly looking for new distributors as TI partners are trying to build up buffer stock. If the rumors prove to be true, any new strategic partnerships will need to be solidified prior to September so the company can present better financial results to their shareholders.

As supply has improved for common parts, pricing has gone down, with some parts selling below market cost. In particular, active ICs are seeing much more healthy supply as demand has stabilized. Alternatively, inquiries are increasing for certain LDO voltage regulators, switching voltage regulators and ethernet ICs.

Pricing is also fluctuating for certain operational amplifiers as some distributors have increased prices by as much as 20% for upcoming orders.

Texas Instruments 

Lighting Drivers

Allocation for the OPAXXX series is limited due to a SEIP issue.

In addition, Texas Instruments is increasingly pulling production capacity to create replacements. Due to this shift, general lead times for other products may extend. Overall, lead times for the OPAXXX have extended, and some customers have reported that incoming stock for the OPA2277UA may be delayed by about two months.

Supply is constrained for the TPS92520QDADRQ1, as all available stock is subject to allocation. Forecasts indicate that this shortage will likely continue into the second half of the year.

While lead times have improved for some Vishay parts, MOSFETs, the VY and the CRW series have lead times up to 100 weeks.

In addition, customers have reported receiving pushback on allocation for SQJ series MOSFETs. Lead times are more than 80 weeks (about 1 and a half years).

Western Digital sent out an official notice on May 10th announcing a price increase on all distribution costs for HDDs, with higher runners of 16TB and above seeing the largest increases. The change in pricing stems from low demand, an uptick in operational costs and reduced production. Western Digital hopes that the ten to fifteen percent increase will drive profit margins higher amongst weak market conditions.

The price increase will go into effect on June 3rd. 

Yangtze Memory Technology (YMTC)

NAND Flash

The storage market has bottomed out and a turning point is on the horizon. An analysis of market trends in the last two months shows that the original factory is under enormous pressure to absorb significant losses. Due to this, distributors from these facilities are unwilling to sell their product at low prices. After various adjustments, pricing has stabilized, and it is unlikely that pricing will fall further in the future.

While consumer demand has not rebounded, enterprise market conditions have improved. The consumer market will likely follow suit shortly, as pricing has nowhere left to fall and supply is slowly dissipating as customers take advantage of the remaining cost savings opportunities.  

In anticipation of a market rebound, 3D NAND flash prices have increased by five percent. YMTC accounts for around 5 percent of the global NAND memory chip market. Read more about the situation here.