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February 23, 2021
Samsung Raises Pricing on PC Modules
The recent price increase saw 4G/16G/32G all increase roughly 2-5%. 8G product remained stable at the current price point. Open market pricing is still well above direct cost, and inventory is short regardless, but it is still an indicator of more increases to come, most likely on a monthly basis for PC and Server products.
Severe Weather in Texas Causing Plant Shutdowns
Severe winter weather in Texas is causing more manufacturing plant shutdowns. The latest semiconductor companies to have power outages at their plants are NXP, Infineon, and Samsung. Luckily, the plants had a heads up on the pending outage and had some time to prepare and move inventory around. At this point, the effects on the global supply chain are unknown, but expectations are that this will further constrain an already severely tight market.
LCD Panels Continue To Be a Gating Item for Many Manufacturers
For most of 2020, the main issue for laptop manufacturers was getting a hold of CPU supply from Intel and AMD. Now that CPU supply has opened up, they still can’t build as there aren’t enough panels. The factors causing this issue are Samsung selling their LCD business, LG closing a factory due to a poisonous gas leak, and then standard workforce issues due to COVID-19. The supply is expected to be short through 2021.
Alpha & Omega Semiconductor Extending Lead Times
Alpha & Omega Semiconductor is extending lead times to almost 6 months. Demand for MOSFETs, IGBTs, and Power ICs has been increasing on a monthly basis. The addition of the automotive industry over-booking product continues to add strain to the supply chain. Wafer shortages are blamed as the driver of these issues with no recovery in sight.