Coronavirus Supply Chain Update

The current COVID-19 health crisis across the world continues to impact the global supply chain. Here at Summit Electronics, we are closely monitoring the situation. We have obtained information that may be useful to you regarding current marketing conditions, shutdowns and electronic parts supplies based on Trend Research and Gartner.

NAND Flash/DRAM

NAND flash supply will remain historically low in 2020 due to fab delays and technology transitions, but the demand will diminish later in 2020.

The memory market will likely be in a slump in the second half of 2020 according to market research.

At this date however, DRAM and NAND flash fabs in China continue operations. NAND Flash memory is available as demand falls. Prices for NAND Flash will likely fall in the 2nd half of the year. SD Cards are in tight supply, with lead times on Sandisk and Kingston now at a minimum of 8 weeks. The push for NAND Flash stays high currently and so NAND prices are trending higher.

CPU

CPU shortages are a large problem right now for Intel. Intel has had issues meeting PC demand on 14nm Gold series 5100/6100, most inquiries are from large PC makers that have created shortages on this Xeon series. Intel may fall short of supply for desktop and lower-end PC and notebook segments including Celeron Demand has continued to outpace PC supply and supply remains tight in the PC business. -- and by proxy, many other PC industry firms, from Microsoft to OEMs to chip and component suppliers -- than was generally expected four to six months ago

Semiconductors

Gartner Forecasts Worldwide Semiconductor Revenue to Decline 0.9% in 2020 Due to Coronavirus Impact

Many manufacturers are facing supply chain disruptions with most releasing updates and notices about their status including Samsung LED, TDK, TE Connectivity, Amphenol FCI, Cypress Semiconductor, Walsin Technology, China Star Optoelectronics Technology (CSOT), ST Micro LCD fabs run by BOE Technology, and Tianma Microelectronics in Wuhan LCD.

Semiconductor manufacturers may also suffer a raw materials shortage because of continuing transport restrictions in China.

Due to the impact of the coronavirus on semiconductor supply and demand, worldwide semiconductor revenue is forecast to decline 0.9% in 2020, according to Gartner, Inc. This is down from the previous quarter’s forecast of 12.5% growth.