AI data center expansion and high-speed network upgrades continue to support demand for networking equipment. However, as the industry enters the second half of 2026, supplies of key components—including memory, printed circuit boards (PCBs) and passive components—remain tight, with lead times extending significantly.
Networking and wireless communications vendors said the biggest uncertainty has shifted from demand to the supply chain, warning that prolonged component shortages could delay product shipments and revenue recognition.
Several industry players said DDR memory, PCBs, and certain peripheral components are currently facing the most severe supply constraints.
AMPAK Technology said DDR memory prices have become increasingly volatile, while lead times for PCBs, ICs, and other components have lengthened considerably. PCB lead times have extended from around eight to 10 weeks to more than 20 weeks, and deliveries of certain DDR memory products ordered this year have been pushed into next year.
Kao-Chung Tsai, Chairman of NFore Technology, likewise identified PCB availability as the company's biggest supply-chain challenge, noting that lead times have stretched to around 20 weeks. He said component shortages would likely be the primary reason if second-half revenue falls short of expectations.
Accton Technology Corporation said it remains difficult to predict when supply constraints will ease. The company attributed the shortages to a combination of limited component availability, sustained AI-driven demand, and relatively conservative capital spending across the supply chain, suggesting that the supply-demand imbalance is unlikely to improve in the near term.
WNC Corporation has also identified component shortages and rising raw material costs as two of its key operational risks for 2026, saying the availability of memory and passive components will directly affect revenue, inventory levels, and cost structures.
Beyond supply constraints, rising memory prices are also beginning to reshape procurement strategies among downstream customers.
AMPAK said DDR prices are now quoted based on prevailing market rates. To mitigate pricing volatility, the company has begun itemizing DDR memory costs separately from the selling price of its system-on-module (SOM) products that incorporate DDR memory.
CyberTAN Technology noted that the recent surge in memory prices has made customers more cautious. Concerned that end-market demand may not justify purchasing inventory at elevated prices, many customers are prioritizing the consumption of existing inventories before placing new orders, resulting in delayed shipments and weighing on the company's revenue.
Arcadyan Technology Corporation said demand remains robust in the third quarter of 2026, but component shortages and higher prices are expected to increase operational pressure. Inventory levels have continued to rise quarter by quarter, and the company plans to negotiate with customers to gradually pass through higher costs where appropriate.
Looking ahead, while AI data center deployments and Wi-Fi upgrade cycles are expected to continue supporting market demand in the second half of the year, supply-chain bottlenecks are unlikely to ease anytime soon. As a result, networking equipment vendors are expected to continue facing constraints on shipment schedules and the timing of revenue recognition.
Article translated by Scarlett Yu and edited by Jerry Chen
