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May 19, 2021
Despite Component Shortages, eMMC Devices Seeing a Surplus
Amidst component shortages across the board, eMMC devices are seeing a surplus. Samsung and Kioxia specifically are dropping in price due to oversupply in the market. Speculation is that one of the biggest drivers contributing to this is the reduction in production on mobile devices by Apple. Whatever the case, prices have dropped 30% over the past week on 4/8/16GB product. Micron product, however, is still trading at higher prices due to a shortage of supply.
Samsung Extends Lead Times on DDR4
Globally, most distributors have moved a large portion of in-stock inventory for DDR4 chips and DIMMs. Prices have been steadily increasing despite many customers claiming they have plenty of supply in global hubs or their own inventory. Now we see lead times starting to extend further out to ~30 weeks. As inventory continues to deplete, these extended lead times will create COS (continuity of supply) issues, causing market pricing to increase faster.
Intel Xeons Are Starting To Tighten in the Market
Intel is rumored to be shifting capacity to PCs due to low server forecasts to start the year. Also, the lockdown of Malaysia is causing some supply concerns if factories cannot be up and running at full force. These potential issues have driven a flurry of buying over the past couple of weeks of both Cascade Lake and Refresh. Prices have jumped upwards of 10% very quickly. This increase will most likely be short-lived unless demand picks up substantially in the server space.