Increasing Usage for GDDR6 Among Many Different Applications Is Driving Market Tightness. Historically, the main driver for GDDR has come from gaming computers and graphics cards. Recently, the adoption of these GDDR6 chips in 5G, AI, IoT and networking is creating much more demand than originally expected. With new gaming consoles coming out this year and continued evolution across the other markets, expect the shortages to continue through the end of Q4.
Samsung Releases New Server Module Pricing Amid a Soft Market. With demand and pricing continuing to soften, Samsung is trying its best to keep pricing relatively stable. However, the glut of product in the market is making that very difficult. Last week they released pricing, but the market reacted as expected, by trading below those prices in order to move lagging inventory levels. For example – a 32G RDIMM is trading 3-5% below current direct pricing levels.
AMD Shortages Are Likely to Affect the Ability to Compete With Intel. The continued demand for laptops is putting a strain on AMD’s supply chain. There are many reports of AMD pushing out delivery on many of their mobile families. At the same time, Intel is starting to recover from the higher-end mobile CPU shortages that plagued the first half of 2020. The unfortunate result for AMD is that many manufacturers are offering an Intel replacement on their systems. If AMD can’t recover quickly, they will rapidly lose market share.
Chromebook and Low-End Mobile PC Demand Still a Problem for Intel. As the school year gets closer, the imminent continuation of learn-from-home education programs are driving demand. Intel’s Gemini-Lake is the main frontrunner in the low-end sector and still short in the market. Initial forecasts were that Intel was going to have the problem solved by August, but the increasing demand is still keeping ahead of Intel’s pace. Product that does become available is demanding premiums and when analyzing the amount of margin in these systems, any premium has an impact. Manufacturers are struggling between meeting customer demand and meeting profit numbers.