Unfortunately, the global chip shortage will continue into Q2 of 2021. The shortage is likely to have an effect on solid-state drive and storage devices used in laptops, servers and data centres. As we explained in our previous post, the current situation is unfortunate and may continue for some time before prices fall again.
Several industries and manufacturers around the world have been affected. Automakers such as General Motors, Ford Motor, Honda Motor and more are expected to lose billions of dollars in earnings due to the semiconductor chip shortage. Chinese electric car startup Nio announced that it is closing its factory for five days due to the shortage. Apple was forced to delay the launch of its anticipated iPhone 12 by two months because of the crisis. The effects of the global shortage are far-reaching.
Effects on the SSD segment
The crisis has sadly hit the SSD segment. Taiwan’s global semiconductor market research firm, TrendForce, recently adjusted Q2 price forecasts for enterprise SSDs from a “0-5%” quarter-on-quarter to a “0-5% increase”. As a result, SSDs now face supply issues due to a shortage of NAND flash controllers, which was exacerbated by the power outages at Samsung’s Austin semiconductor plant in February 2021.
The supply of controllers faced a shortage starting as early as the end of 2020 when major manufacturers lacked sufficient capacity for the increased demand. Late last year, the global leader in the memory chip market, Samsung, was operating close to normal. However, the power outages in February had a significant impact on the shortage problem. Unfortunately, news sources predict that the SSD supply shortage will be prolonged rather than a temporary blip. However, Samsung is offering reassurance to all who are concerned. A representative from the company said: “we still have inventory of controllers in possession, allowing us to continue to produce SSDs. Some overseas media outlets have somewhat exaggerated the issue.”
More bad news for semiconductor production
Unfortunately, more bad news made headlines in late March as Renesas Electronic Corporation, one of the world’s largest semiconductor manufacturers, reported a fire on 19th March at a Japanese facility. Renesas is aiming for production to resume as quickly as possible, preferably in a month’s time, but TrendForce estimates that it will take longer. The company estimates that it will take three months for Renesas to reach its former capacity. The incident’s financial impact has been estimated to be approximately $156 million per month by Renesas.
To learn more about the origins of the chip shortage, please read our recent post.
We’re here to help you
Like many businesses worldwide, we do not welcome the prices increases that have occurred due to the global shortage of semiconductors. However, we want to assure you that we are doing all we can to make the parts you need accessible to you. We pride ourselves on our multifaceted offering: affordable, high-quality, and compatible components that last. If you have any questions, please get in touch with us, and a member of our team will be happy to assist you.