By Hogan Su | 10 June 2021 | 0 Comments
Critical Shortage Components Analysis：Review the May
General Overview
The component market had a frequent fluctuation recently. Due to the worse situation of COVID-19 in some original manufacturing countries, for example, India, Vietnam, Malaysia, the industry chain has been impacted severely.
Firstly the price of 8-inch wafer increased because of the shortage, then to the increase of relevant IC parts, and later the price increase of raw materials, this trend is spreading out.
The following picture shows some brands' dynamics.
ASE Group(OSAT Factory)
Increased price from 5% to 10% for the encapsulation.
Maxim: Tight production capacity, postponed lead time.
MCU: Sustained price increase of MCU
Chinese MCU manufacturers become popular, increased input.
Pandemic in Malaysia Impact on MLCC, chip resistors, solid capacitors.
ST
Price increase for all products since 1st June.
A part of wafer has increased price at 20%.
☆ TI TEXAS INSTRUMENTS
TI was one of the most hot brands in May, some parts showed high popularity in May. For example, series TPS2/3/5/6, series TLV625, series BQ24/25/4/5 and UCC. The shortage is still existing.
Reasons for price increase and hotness of TI parts
The component market had a frequent fluctuation recently. Due to the worse situation of COVID-19 in some original manufacturing countries, for example, India, Vietnam, Malaysia, the industry chain has been impacted severely.
Firstly the price of 8-inch wafer increased because of the shortage, then to the increase of relevant IC parts, and later the price increase of raw materials, this trend is spreading out.
The following picture shows some brands' dynamics.
ASE Group(OSAT Factory)
Increased price from 5% to 10% for the encapsulation.
Maxim: Tight production capacity, postponed lead time.
MCU: Sustained price increase of MCU
Chinese MCU manufacturers become popular, increased input.
Pandemic in Malaysia Impact on MLCC, chip resistors, solid capacitors.
ST
Price increase for all products since 1st June.
A part of wafer has increased price at 20%.
☆ TI TEXAS INSTRUMENTS
TI was one of the most hot brands in May, some parts showed high popularity in May. For example, series TPS2/3/5/6, series TLV625, series BQ24/25/4/5 and UCC. The shortage is still existing.
Reasons for price increase and hotness of TI parts
O1 Shortage supply of 8-inch wafer.TI shifted capacity to those products with higher gross margin, which leaded in the obvious price increase in those products with low unit price, especially power management IC.
02 Increasing of demandsThe 5G industry, smart home appliances, wireless/fast charger, intelligent industry, smart security, LED driver, etc. There will be over 13-billion-dollar power management IC being applied to those industries per year in Chinese market only.03 The launch of TI parts has been decreased in current market.From the second half of 2020, several FD of TI had reduced or stopped the delivery of components. Besides, the original manufacturer also reduce or cut orders of FD, and there are readjustments among them. Which caused the low output of product and invalidation of price.
Analysis: In the long run, the original factory cut orders, so the reduction of order volume will release a certain amount of capacity. But in the second half of 2021, whether this market will continue to be hot as the first quarter still depends on the market direction.
Memory IC
According to foreign media reports, some industrial chain insiders and research institutions have repeatedly expected the contract price of DRAM and NAND flash memory to be increased in both the first and second quarters of this year.
Samsung
Price of a few memory parts has fallen after risen, but it descends slowly.
Micron
Demands are still strong, price keeps increasing steadily.
Embedded Memory & SSD
Product outputs are still limited due to the shortage capacity of master control, substrate and encapsulation.
Analysis: The main reasons for the price increase of memory chips are that: 1. epidemic has impacted the global economy, online shopping, e-commerce, online games and e-sports games have bucked the trend. The demand for memory in the first season is still strong, and the demand for DRAM and NAND Flash for promoting servers is even stronger.
List of Manufacturers in May
ADI
7th April, the analog IC magnate, ADI declared there would be adjustment on the price for some products. 16th May, ADI increased price for some popular part numbers.
TOSHIA
12th May, Toshiba declared that, due to the influence of COVID, in semiconductor industry, cost of wafer, foundry, and packaging has risen, price increase will be effective from 1st June.
ON Semi: 14th May, ON posted notice, declared price adjustment will be carried out accordingly.
Holtek: After the ST posted the second price increase, Holtek declared the price will be increased in the coming August.
SUMCO
The Japanese Silicon wafer factory, SUMCO, indicated that demands of 12-inch logic-applied silicon wafer exceeds supply, the situation will become even worse in the future, therefore the price of stock will be increase. For the 8-inch products, they planned to rise the price after October.
XL SEMI: 6th May, a notice from XM Semi said that all products would have an adjustment due to the higher cost of raw material.
ST: 17th May, second price increase notice was notified by ST, adjustment is for all products.
Conclusion: The June has approached, in the second half of 2021, this market will be in even critical shortage. The market cannot satisfy customers’ need all the time, plans for stock up will be necessary for the emergency needs.
Chip Lead Time for the Home Appliance Industry Is Expected to Be Extended
Component market analysis in April
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