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July 13, 2021
Malaysia COVID Crisis Continues To Cause Constrain on the Market
Recent lockdowns have limited headcounts in factories to 60%, which has affected supply. Recently, Malaysia has implemented a 100% lockdown in some regions. ON Semiconductor recently released a statement to its customers warning that further delays and extended lead times are to be expected. The lockdown is anticipated to end after two weeks, but there can always be extensions if safety remains a concern.
Shortages of PC Processors Expected to Rise
Intel is expected to be short on PC processor inventory for Q3. As they continue to push customers to the 11th gen, there are market concerns about the availability of the 10th gen. Many customers still have very high run rates as they transition over. Early reports indicate that Intel could be short as high as 30% of Q3 demand on 10th gen. Market pricing is already starting to climb 5-8% due to recent activity in the spot market related to these supply shortages.
Prices Continue to Rise on Samsung Server Modules
Market pricing on server modules is continuing to rise. Although there hasn’t been an official release by Samsung, early market trading has seen pricing jump 5-8% to start July. Official pricing, when released, should come in slightly lower as the market has been carrying a premium for the past quarter. Micron expects to have a 10-15% increase as they struggle to keep up with demand.