Because of worsening shortages of ICs and components, downstream ICT product makers are expected to decelerate their paces in specs upgrades for their new products as their upstream partners will not have enough capacity to support them. Meanwhile the issue will also constrain MCU vendors' revenues as they are experiencing longer delivery lead times from their foundries and backend service providers. As demand from cryptomining applications remains strong, many chip vendors have turned to adopt BT substrates for cryptomining chips as ABF substrates are currently having serious shortages.
Chips shortages to slow down specs upgrades for new offerings in 2H21: As shortages of ICs and other components are expected to worsen further in the peak season, downstream system makers are expected to slow down specs upgrades for their new offerings set for launch in the second half of the year, according to industry sources.
Longer production lead times to constrain revenue growth at MCU vendors: Taiwan's MCU vendors will see their revenue growth momentum constrained in the short term by extended delivery lead times at foundry and backend houses, although they have abundant orders in hands, according to industry sources.
BT substrate supply increasingly tight on strong cryptomining demand: The supply of BT substrates has been increasingly tight, as more vendors of chips, particularly cryptomining ASICs, have turned to adopt BT substrates amid worsening shortages of ABF substrates, according to industry sources.