Lack of core spread to the server! ODM is facing the risk of disruption in shipments

According to industry sources, shipments of server ODM have been affected by a shortage of power management chips, network switches and other chips and components, which is unlikely to be alleviated before the end of the year.

It is reported that there is no shortage of components in the server industry in 2020 because supply chain companies give priority to server products with higher profit margins. However, since the beginning of 2021, supply shortages have spread to the server industry, the source said.

Inerda, the world's largest server maker, began experiencing shortages of many components, including power management chips, in the second quarter, but it still expects double-digit growth in server motherboard shipments in that quarter. Inerda believes that if there were no shortage of parts, the growth in the second quarter would be even higher.

Another server ODM big factory Mitac situation is not optimistic. Mitac server shipments were affected by about 20-30 per cent of component shortages in the first quarter and will continue to be severe in the second quarter, the source said, as the latter is adopting a more flexible design for its server motherboards to reduce the impact of component shortages.

In addition, manufacturers such as Quanta and Wiwynn, which are more focused on supplying rack systems, have been plagued by a shortage of network switches in addition to chips.

Wiwynn is watching the rapid depletion of switch inventory and the average lead time for its network chip suppliers has been extended to 50 weeks and is unlikely to be shortened any time soon, the source said.

Sources from network switch manufacturers point out that the average lead time for network chip delivery is about 52 weeks, while the lead time for driver chips is also getting longer. As the situation is expected to deteriorate further in the second quarter, the supply glut of most switch manufacturers fell by 25-30% in the first quarter.

According to the institute, global server motherboard shipments will grow by 16% in the second quarter, thanks to the release of Intel's new server cpu and u.s. data center operators stepping up their orders to avoid IC shortages.