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June 8, 2021
Chip Manufacturers Are Taking Drastic Measures Amid Shortage
We have seen many manufacturers extend lead times and raise prices during the past year. Now we are seeing many take the next step and force customers and channel distributors to sign NCNR agreements. ON Semiconductor, Nexperia, NXP, STMicro, Marvell, and Maxim have implemented these measures to ensure their pipeline remains secure and stop customers from over-booking.
Effects from Malaysia COVID Lockdown Are Hitting the Market
During the past two weeks, there has been significant activity among Automotive Infineon devices manufactured at plants in Malaysia. Much of the available stock is being bought up at heavy premiums as distributors cannot confirm incoming deliveries with any certainty. ON Semiconductor has already released a statement to warn customers to expect constraint, and many more should follow if conditions do not improve.
Passive Component Manufacturers Continue To Extend Lead Times
Up until recently, component shortages have been primarily focused on active components. Passive manufacturers have been slowly increasing lead times, and market prices are rising while ready stock is depleting. At the core is the automotive industry surge in demand from 2020 to 2021, with passive demand specific to electric vehicles.
Intel Xeon Processors Are Starting To Tighten as Capacity Shifts to PCs
2021 has been a quiet year for Intel Xeons in the spot market as supply has been steady. In the past couple of weeks, we have seen increased activity. It started with the LCC Cascade Lake and Refresh and has since escalated to the HCC product. Early speculation is that Intel has switched a lot of capacity to keep up with PC chips as the Xeon market slowed. Regardless, pricing has jumped up 10-15% depending on the specific part in question. The situation is expected to get worse in Q3 through Q4.