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Semiconductor Shortage Affecting Display Drivers
As the semiconductor crunch continues, the supply of LCD driver ICs by as much as 20% below demand, prompting vendors to consider raising prices. Many other components are also in short supply, including networking chips from Qualcomm as we discussed last week. Some networking chip vendors, such as Broadcom, have had to extend their delivery lead times. TSMC’s production capacity during the second quarter has been filled by a strong pull-in of orders for 5G, HPC and automotive electronics chips, according to industry sources. Broadcom have extended their delivery lead times to as long as 50 weeks due to the tight supply of critical parts and components, heralding the tight supply of networking chips in the second half of 2021, according to industry sources.
Two of the top-five ODMs have said supplies from the upstream remain tight and they are still scrambling for needed materials. Acer chairman and CEO Jason Chen also said at the company's latest investors' conference that market demand remains robust, adding that tight capacity at most foundry houses have made component shortages a thorny issue for the notebook industry. Acer is currently only able to fulfill 30% of its clients' orders and has been forced to defer its shipments, Chen revealed. But recently there are some signs of demand easing as a top-three notebook asked its notebook IC suppliers to tentatively halt their shipments due to a slowdown in notebook demand as related notebook chassis suppliers experienced a slowdown in shipment pull-ins from notebook brands after the Lunar New Year holidays. For display panels, some notebook brands have already built up at least two weeks of inventory instead of the previous status of extremely short supply, said the sources. Most notebook ODMs have stressed that order pull-ins from their notebook vendors have remained strong amid tight supply of some critical parts and components, with no signs of easing in first-half 2021, the sources said. In February, the global top-5 notebook brands combined shipments of notebooks, excluding those of detachable models, declined 8% sequentially while the top-3 notebook ODMs' combined shipments fell 9% on month, according to Digitimes Research. Notebook demand in February was stronger Y/Y, but shortages of manpower and components were worse.
(Source: Digitimes)
As the semiconductor crunch continues, the supply of LCD driver ICs by as much as 20% below demand, prompting vendors to consider raising prices. Many other components are also in short supply, including networking chips from Qualcomm as we discussed last week. Some networking chip vendors, such as Broadcom, have had to extend their delivery lead times. TSMC’s production capacity during the second quarter has been filled by a strong pull-in of orders for 5G, HPC and automotive electronics chips, according to industry sources. Broadcom have extended their delivery lead times to as long as 50 weeks due to the tight supply of critical parts and components, heralding the tight supply of networking chips in the second half of 2021, according to industry sources.
Two of the top-five ODMs have said supplies from the upstream remain tight and they are still scrambling for needed materials. Acer chairman and CEO Jason Chen also said at the company's latest investors' conference that market demand remains robust, adding that tight capacity at most foundry houses have made component shortages a thorny issue for the notebook industry. Acer is currently only able to fulfill 30% of its clients' orders and has been forced to defer its shipments, Chen revealed. But recently there are some signs of demand easing as a top-three notebook asked its notebook IC suppliers to tentatively halt their shipments due to a slowdown in notebook demand as related notebook chassis suppliers experienced a slowdown in shipment pull-ins from notebook brands after the Lunar New Year holidays. For display panels, some notebook brands have already built up at least two weeks of inventory instead of the previous status of extremely short supply, said the sources. Most notebook ODMs have stressed that order pull-ins from their notebook vendors have remained strong amid tight supply of some critical parts and components, with no signs of easing in first-half 2021, the sources said. In February, the global top-5 notebook brands combined shipments of notebooks, excluding those of detachable models, declined 8% sequentially while the top-3 notebook ODMs' combined shipments fell 9% on month, according to Digitimes Research. Notebook demand in February was stronger Y/Y, but shortages of manpower and components were worse.
- Hewlett-Packard's (HP) Chromebook shipments continued to rise in February with the US-based brand's overall notebook shipments only dipping slightly sequentially.
- Lenovo was the only top-5 brand with sequential shipment growth due to its robust gaming and education model shipments.
- Dell's February shipments performed weaker than those of its competitors as the company had entered a new fiscal year in the month.
- ODM Quanta Computer experienced an on-month shipment increase in February thanks to brisk orders for Chromebooks and MacBooks.
(Source: Digitimes)
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