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September 22, 2020
Spot Shortages for Components Due to US Sanctions on China and Golden Week Shutdowns
As of September 15th, the latest round of sanctions was implemented. The few weeks leading up to the 15th were very active in the spot market. Companies like Huawei, Inspur, etc. were reported to be out in the market buying up buffer stock. As a result, there are spot shortages on many components, but the most affected are Cascade Lake and Refresh Xeon CPUs for data centers and GDDR and LPDDR memory for mobile device consumption. Supply in the market is expected to recover by mid-October after the Golden Week shutdown.
Intel Continuing to Push Server Customers Toward Cascade Lake Refresh
Recently Intel has announced they will be removing rebates on Cascade Lake Xeons and granting those rebates to Refresh product. The goal is to entice customers to move along the roadmap accordingly. The spot market result is uncertain pricing among Cascade Lake as suppliers must reorder products at new, higher pricing.
5G Builds Causing MLCC Issues
Samsung, among other manufacturers, is falling well behind on deliveries for small case size MLCCs. The most affected are 0402 and 0603 case sizes. Reports are that Samsung is at full capacity. If demand stays consistent or rises, they will not be able to satisfy their customers within a reasonable lead time.
STMicro MCUs Continue to Be Constrained
STM32 series MCUs are experiencing longer lead times as demand continues to grow. Current lead times in the market are pushed out as far as 22 weeks with no recovery signs. STMicro was also having issues on other product lines and continue to claim that they are not having wafer issues, just having trouble catching up with capacity after reductions due to the pandemic. Issues are expected to continue through CY2020 Q4.