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November 17, 2020
Tantalum Caps Seeing Extended Lead Times
AVX seems to be one of the main reasons for the issue. Their main plant in El Salvador was closed for roughly four months due to the pandemic. Now they are faced with a giant backlog to try and fulfill, and they are struggling to do so. Demand is cascading to crosses like Kemet, Vishay and Rohm, but they aren’t able to make up the difference at this point. Lead times are now pushed out 40+ weeks.
Mobile PC Market Still Active
Laptop, Chromebook, and tablet demand is remaining very strong through the pandemic. There are shortages across many commodities, including processors, modules, storage, and graphics. That being said, the major gating item currently are LCD panels. Although the other commodities are constrained, builders are holding off on bringing in material until they have a resolution on the panels. Lead times continue to escalate, and currently, they are pushed out close to 20 weeks from the standard eight weeks that companies use to forecast.
Signs of Life in the Server Memory Space
Although the overall memory market has been quiet, there has been a recent surge on 32G and 64G DDR4 3200 RDIMMs. The expectation is that in early 2021, there will be heavier demand, and some manufacturers think buying now at the low point will pay off when prices rise. The main reason the market is bullish on 3200mhz is surrounding the release of Intel’s Ice Lake Xeons, which are only compatible with 3200mhz.
Intel Rebate Structures Effect Market Pricing
In typical fashion, Intel is trying to force customers along their roadmap. The latest step is to move everyone away from Cascade Lake product, which has proven to be difficult as many customers were successful with those products. The latest move is to remove rebates that make Cascade Lake pricing attractive to build with. This step can raise the pricing up to 15-20% and make it more beneficial to build with Cascade Lake Refresh, which is a pin for pin transition. Open market pricing is expected to rise once the rebated stock is consumed.