Industry Insider

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Certain companies are still assessing their facilities after the Taiwan earthquake. While most facilities have resumed production, delivery for products that are COO Taiwan are expected to be delayed.

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Manufacturers are signaling that demand is increasing amongst automotive customers, which could lead to IC shortages depending on customer order size coinciding with production reductions. Should the shortage forecast prove accurate, the market will feel the impact by the end of 2024 or early 2025. Some customers have already reported issues securing allocation or updates on product plans.

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HDD supply has reportedly been increasingly limited since the beginning of April. This situation has pushed Tier 1 customers to the open market to find secure continuity of supply.

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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.

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Passives

Manufacturers are signaling that passives may be short in the coming quarters due to an uptick in order pull-ins coinciding with previously planned production cuts. Additionally, there has been an uptick in demand amongst Chinese and U.S. customers.

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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.

Broadcom

Ethernet ICs are experiencing a wave of increased demand due to their usage in data centers and cloud computing. Lead times for the BCM5xxx and BCM8xxx series are up to 50 weeks. 

Broadcom

Market intelligence reports indicate that Broadcom will launch a new series of PCIe switches in the coming quarters.

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.

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.

Infineon

Demand for the TLE925x series is on the rise, likely due to their popularity in EV applications.

Intel

Costs for the desktop 12th and 13th Gen CPUs are reportedly not open to negotiation or any special rebate pricing.

Intel

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

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.

Intel

Solidigm

SDD costs will reportedly increase by 15% - 20% this quarter.

Kioxia

Kioxia’s CM7-V and CM7-R series are reportedly experiencing severe shortages as these are the company’s most popular drives.

Microchip

Market reports indicate that raw material shortages are impacting manufacturing capabilities. This is expected to impact lead times because of a lack of wafers needed to manufacture ICs.

If supply does not improve, lead times are expected to increase in the coming months, with certain products going from 8– 12 week lead times to 20 weeks.

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%.
•    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.

Micron

DDR5

Early reports indicate that Micron’s monodie version of D5 128G will be available in the coming quarters. Micron will be the first to launch its version of the single memory die for HBM stacks, which will likely lead to competition rolling out their versions within the year.

This product launch may impact lower capacity forms of D5, as manufacturers are signaling that there would be no support for upside in demand. This means that customers will only receive supply based on their pre-submitted forecasts. Supply could be constrained in the second half of the year due to CSP activities.

Micron

DRAM

Micron has resumed quoting with no change in lead times following the Taiwan earthquake. While DRAM supply was reportedly affected, the percentage is considered insignificant. 

While lead times remain the same, pricing is expected to increase by at least 20% this quarter. Mobile DRAM will see a smaller increase, around three to eight percent. However, server DRAM costs are anticipated to be in in the higher end of the cost increase range.

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

GPU

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

Delivery of Realtek components manufactured in Taiwan will reportedly be delayed as a result of the earthquake, and there may be upcoming shortages.

Samsung

Samsung may go on strike in the coming months if worker demands in South Korean based facilities are not met. Most of the employees will possibly strike work on the consumer electronics side of the business, so the impact to foundry or memory would be minimal. 

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

NAND

Samsung is reportedly increasing NAND production to 90% capacity to support demand.

Seagate

Material constraints are impacting Seagate supply for particular components. Pricing is already on the rise, and could be further increased should shortages materialize.

Seagate

SSD

HDD

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

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.

STMicroelectronics

Official reports are still pending but lead times may extend due to the earthquake.

Taiwan Semiconductor Manufacturing Co. (TSMC)

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.

Western Digital

Demand for Western Digital components is on the rise, which is expected to impact pricing through the next two quarters. 

Western Digital

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.