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

Published: May 27, 2021 13:38

Save

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.

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.

Chip semiconductor output ODM

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

17 hours ago

A mine in Henan opened bids for a 300 mt tungsten concentrate auction on February 6.

[Tungsten Concentrate Tender Information] SMM February 7: A mine in Henan conducted an online tender on February 6 to sell 300 metric tons of low-grade tungsten concentrate. Lot A had an average WO3 grade of ≥25%, while Lots B and C had an average WO3 grade of ≥22%. The tender results for each lot are as follows: Lot A: 100 metric tons, tender price of 10,155 yuan/mtu. Lot B: 100 metric tons, tender price of 10,160 yuan/mtu. Lot C: 100 metric tons, tender price of 10,155 yuan/mtu.

17 hours ago

Ganzhou Tungsten Association Significantly Raises Tungsten Price Forecast for February 2026

[Ganzhou Tungsten Industry Association's February Tungsten Price Forecast] The Ganzhou Tungsten Industry Association's forecast prices for the tungsten market in February 2026 are as follows: 55% black tungsten concentrate at 670,000 yuan per metric ton unit, up 210,000 yuan per metric ton unit MoM from the January price, an increase of 45.65%; ammonium paratungstate at 970,000 yuan/mt, up 300,000 yuan/mt MoM, an increase of 44.78%; medium-grain tungsten powder at 1,630 yuan/kg, up 480 yuan/kg MoM, an increase of 41.74%.

17 hours ago

Tungsten Market Rallies Strongly, Long-Term Contract Prices Surge & Domestic-Overseas Markets Link Up

Driven by tight spot raw material supply, a sharp hike in corporate long-term contract prices and festive effects, the tungsten market saw price rises on shrinking volumes this week with domestic and overseas markets moving up in tandem; the strong short-term trend is set to continue, and attention should be paid to the resumption of cemented carbide production, scrap tungsten supply and downstream demand release after the Spring Festival.

17 hours ago