Memory vendors have been cautious about increasing output in the wake of the coronavirus outbreak, despite significant demand from certain maket segments, such as datacenters and enterprise-class SSDs. It is foreseeable that memory prices will continue to climb in the second quarter of 2020. Foundry services are another sector that has been left almost unscathed by the outbreak. Lead-times at 8-inch fabs have extended because of tight capacity, as clients concerned about possible supply disruptions have stepped up order placements. Passive components makers have reported sales decreases for February because of output contraction at their China plants in the wake of the outbreak, but they remain optimistic with Yageo mulling raising prices to reflect increased costs.
Memory contract prices to see double-digit increases in 2Q20: DRAM and NAND flash memory contract prices are expected to register double-digit increases in the second quarter of 2020, driven by growing demand for data centers, and enterprise-class SSDs and other applications, according to industry sources.
Eight-inch foundry delivery lead time extended: Eight-inch wafer fabs' delivery times have extended to more than 12 weeks to reflect their tight capacity, according to sources at Taiwan-based analog IC firms. The lead times were below eight weeks before the Lunar New Year holiday, the sources said.
Yageo, Walsin post significant revenue decreases for February: Passive components makers Yageo and Walsin Technology both posted sequential and annual falls for February 2020 revenues due to significant contraction in output of MLCCs and chip resistors at plants in China amid the coronavirus outbreak.