Intel Sapphire Rapid CPUs delayed again
The Intel Sapphire Rapid CPU release is delayed until Q2 2023. Previous reports stated the Sapphire Rapid CPUs delay pushed the release to later in 2022, but due to ongoing supply chain obstacles, the release has been pushed once again. If reports are accurate, the Sapphire Rapid and Emerald Rapid series CPUs will both be released in 2023. Intel’s shift to production support across the newer series will likely mean customers need to transition from the Cascade Lake and Cascade Lake (R) before it is no longer available — within the next two to three years. Customers who already transitioned to the Ice Lake series with intentions to switch to Sapphire Rapid will have to continue using the current CPU series longer than anticipated until the Sapphire Rapid is released.
The short-term concern is that many customers will flood the market for the Ice Lake series, leading to an imbalance between demand as supply as Intel slows support for this series. Ultimately, this would lead to increased lead times and bookings accompanied by premium pricing for parts.
Delayed shipments add to major backlog across Intel’s Ethernet controller landscape
Supply inconsistency in the market across Intel Ethernet controller and chipset products is anticipated to last until 2023. The inconsistency is due largely to Intel’s shipment delays, leading to a major backlog. The fluctuating month-to-month demand is also a driving factor in backlog and price increases. However, support will improve across the highly sought-after Intel Ethernet connector I219-LM (WGI219LM), in addition to more shipments of the Ethernet Controller XL710-BM1 from Intel by mid-July. While this is likely to offer short-term relief, the ongoing supply inconsistency is not anticipated to improve anytime soon.
Memory module imbalance in supply and demand affecting product pricing
Memory module pricing continues its downward trend, with RDIMM (server) pricing down by 3-5% and UDIMM (PC) pricing down by 5-10%. The memory module market is currently in oversupply; vendors shared that PC modules are in a downtrend, as most PC brand makers are reducing production plans for Q3 and Q4.
DDR5 prices are on a downtrend
Open market pricing in the DDR5 module space has dropped drastically compared to three months ago. Stock availability has improved for DDR5 modules, especially PC DIMMs, due to vendors receiving pockets of allocation. This has resulted in at least a 5-8% price decrease.
Additionally, CPUs compatible with DDR5 modules will be more readily available in Q3. However, the transition period for adopting DDR5 will likely stretch into early 2023.
Intel Notifies Customers of Price Increases from May Onward
Intel issued a price-increase notice effective through May onward across all network card series. Lead-times for network cards continue to stretch. Customers are receiving parts on a by-allocation basis, leaving them no choice but to reach out to the open market for support. The ongoing raw material shortages have also had notable effect on Intel’s production, particularly its LOTG series – the current market price remains high with no relief expected in the near future.
Nvidia adapter card backlog expected to continue into Q4
Nvidia’s ethernet adapter card supply has been backlogged since 2021 with the major supply chain challenges the electronics component industry faced amid the pandemic. Supply surges have since occurred sporadically in the manufacturer’s attempt to shrink the gap between supply and demand, but lead times remain high and are now averaging 32 weeks. In particular, the MCX-6 series was affected by material shortages and low productivity across Nvidia’s supply lines. As a response to these ongoing challenges in its supply chain, Nvidia announced a 15% price increase on all optical and network products, which is effective from mid-June onward. The fluctuations in supply capacity and availability are not anticipated to stabilize in the short term, as consumer buying shifts month-to-month.
Intel’s finished product prices rise due to higher component and chipset costs
Intel increased pricing on various ethernet card series by 20-30% due to the higher costs of components and chipsets. In particular, the 10 GbE data rate and below models increased by 20%, while the 25 GbE models increased by up to 30% in price. While higher models are not seeing higher costs, supply is limited and the 100 GbE and above are on an allocation distribution basis.
Consumer demand has remained high for Intel’s I350T2V2 and I350T4V2 low-speed models. However, limited supply of the ethernet chipsets and other board level components necessary for manufacturing these cards is affecting finished product availability.
Nvidia pushes launch of new GPU cards due to decline in crypto space
Overall GPU pricing has declined in recent weeks, primarily due to cryptocurrency price slashes and a drop in mining demand. This shift in the crypto space, as well as consecutive months of oversupply and price fluctuations across Nvidia parts, factored into the delay of its most recent graphics card. The GeForce GTX 1630 was originally announced to be released in May or mid-June but was instead quietly released June 28.
In a similar narrative, the Nvidia GeForce RTX 40-series is also rumored to be delayed from its original launch in August. The series is now expected to be released in September unless Nvidia’s supply chain woes affect RTX 40 similarly to the GTX 1630. This has become a more common trend across manufacturer product roadmaps and release dates as they navigate ongoing material and workforce shortages.
Intel enters the GPU space with soft launch in China
Intel’s first discrete Arc GPUs are now available in China. For years, Intel has included 2D and 3D acceleration in its chipsets, but AMD and Nvidia have dominated the market with more powerful discrete GPU cards. Intel said in 2018 that it would offer discrete GPUs of its own, with shipments set to begin in 2020. However, Intel did not unveil the Arc brand for its GPU efforts until 2021, promising discrete graphics chips for desktops and laptops in Q1 2022.
Intel SATA SSDs are in high demand, but supply remains short
The shortage of Intel’s SATA SSDs is anticipated to continue through the entirety of the third quarter. End users are seeing decommitments for August deliveries amid the continued high demand for these products. Additionally, the S4510 240 GB series is going end-of-life in Q3 2022, adding to customer woes. The replacement series (S4520) is also experiencing tight supply. There will be little relief for these customers with the high demand across all of Intel’s small capacity SSDs and ongoing shortages affecting Intel’s supply chain operations.
Small capacity SATA SSD series in high demand include the following:
S4510 240 GB/480 GB/960 GB
S4610 420 GB/480 GB/960 GB
Intel also notified customers that its P4510 1TB and 2TB SSDs are going EOL, meaning mass production will be halted.
Manufacturers see an uptick in MLCC application across various sectors
The telecommunications sector previously dominated the demand for MLCC parts due to an increase in 5G application. However, the increase in automotive production for both traditional builds and electric vehicle builds means heightened competition for parts across different sectors. Manufacturers are currently seeing an imbalance between supply and demand as the latter outpaces the other.
Nexperia product lead times extend beyond 2022
Nexperia is dedicating a majority of its production capacity to support demand across the automotive sector. While support shifts, it does not alleviate the overall supply chain backlog from previous quarters, which explains the longer lead times for various series. Nexperia’s fast, slow and single-gated product lead times are currently sitting at 54 weeks with SOT353/SOT363/TSSOP/DFN series operating from an on-allocation basis. Additionally, its industrial MCU series lead times remain between 52 and 78 weeks. Due to the demand and production support, a 10-25% price increase is expected in July.
STMicroelectronics adds to its product portfolio
The demand for STMicroelectronics microcontrollers (MCUs) does not appear to be abating anytime soon as the manufacturer plans to expand its portfolio. Following an announcement to partner with speech recognition technology provider, Sensory Inc., STMicro will invest efforts in STM32 application in various voice-control technologies. However, this announcement comes amid ongoing supply and demand support challenges.
For example, the standard lead time for the STM 8-bit MCU is not expected to improve in Q4 2022 as STM reduced its production capacity to shift support to other MCUs. The manufacturer has since announced an end-of-life notice applicable to some of its 8-bit products. This is part of STM’s move to support automotive and smart embedded products.
Majority of Broadcom orders have anticipated delivery dates extended to 2023
Broadcom continues to navigate supply issues, which have been deducted to recurring COVID-19 shutdowns and ongoing material shortages. While lead times remain unstable, overseas customers in mainland China report shipments were received on time, but others have estimated deliveries extending to 2023.
Broadcom’s automotive and industrial application products are especially affected by the manufacturer’s setbacks.
Infineon’s MOSFET activity softens going into Q3
Infineon’s increased production efforts in tandem with decreased demand for MOSFETs offers customers some relief following previous imbalances between high demand and minimal supply. However, this is not the case across every series.
Industrial parts are still highly requested, especially the IRFxxx, and IPDxxx are still in shortage.