The Greensheet: October 2024

Fusion Worldwide’s Greensheet offers monthly insights on electronic component supply chain trends, covering memory, networking, ICs, and more.

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The Greensheet is Fusion Worldwide's monthly market intelligence report detailing the most significant developments across the electronic component supply chain. This report summarizes the biggest trends across seven different commodity markets, including enterprise commodities, networking products, PC &amp; consumer products, finished goods, board level memory components, integrated circuits, and passives.&nbsp;
The information provided in the following pages is based on market intelligence gathered from Fusion Worldwide's sources.&nbsp;
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Sign up for The Greensheet and get the latest industry insights.

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China’s Push for Technological Self-Sufficiency

Learn how China’s AI advancements and tech self-sufficiency are shifting the global supply chain. Download our State of the Industry Report Vol. 2. 

When the United States imposed trade restrictions on technological partnerships with China in 2018, the electronic component supply chain braced itself for a tech war. Over the next year, the tariffs expanded to cover hundreds of billions of dollars’ worth of goods, including many tech-related products and components, such as semiconductors, circuit boards, and telecommunications equipment. Additional restrictions focused on tech partnerships, including blacklisting companies like Huawei Technologies in 2019, which prohibited U.S. companies from doing business with them without a special license.&nbsp;<span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559740&quot;:240,&quot;335572071&quot;:0,&quot;335572072&quot;:0,&quot;335572073&quot;:0,&quot;335572075&quot;:0,&quot;335572076&quot;:0,&quot;335572077&quot;:0,&quot;335572079&quot;:0,&quot;335572080&quot;:0,&quot;335572081&quot;:0,&quot;335572083&quot;:0,&quot;335572084&quot;:0,&quot;335572085&quot;:0,&quot;335572087&quot;:0,&quot;335572088&quot;:0,&quot;335572089&quot;:0,&quot;469789798&quot;:&quot;nil&quot;,&quot;469789802&quot;:&quot;nil&quot;,&quot;469789806&quot;:&quot;nil&quot;,&quot;469789810&quot;:&quot;nil&quot;,&quot;469789814&quot;:&quot;nil&quot;}">&nbsp;

How AI Is Revolutionizing Enterprise Computing

Discover how AI is transforming enterprise computing, enhancing decision-making, automating operations, and driving innovation

It’s no secret that artificial intelligence (AI) has served as a transformative force in the tech industry, revolutionizing <a href="https://www.fusionww.com/industries/enterprise-computing-and-servers">enterprise computing solutions</a>. From improving decision-making processes to optimizing operations and enabling entirely new business models, AI is a critical component of enterprise strategy.&nbsp;&nbsp;
As AI continues to transform enterprise computing, business must adapt to the rapid pace of change to remain competitive in an evolving electronic landscape.&nbsp;
The Transformative Impact of AI on Enterprise Computing&nbsp;
AI's integration into enterprise computing systems is reshaping the landscape in several profound ways.&nbsp;
<ol>
<li aria-level="3"> Enhanced Decision-Making and Predictive Analytics</li>
</ol>
One of the most significant impacts of AI on enterprise computing is its ability to enhance decision-making processes. AI systems can analyze vast amounts of data far more quickly and accurately than humans, allowing businesses to make informed decisions based on predictive analytics. For example: AI algorithms can identify patterns and trends in historical data, helping companies forecast future market demands, optimize supply chains, and reduce operational costs.&nbsp;
<ol start="2">
<li> Automation of Routine Tasks</li>
</ol>
AI is also driving automation across various enterprise functions. Routine tasks that once required human intervention —such as data entry, customer service, and inventory management — are now being handled by AI-powered computing systems.&nbsp;&nbsp;
This increases efficiency and allows employees to focus on more strategic activities that require creativity and critical thinking. AI-powered chatbots are just one example of automated routine tasks. These chatbots can handle customer inquiries 24/7, providing consistent and efficient service while freeing human agents to tackle more complex issues.&nbsp;
<ol start="3">
<li aria-level="3"> Improved Cybersecurity</li>
</ol>
In today's world, cybersecurity is a top priority for enterprises. AI plays a crucial role in augmenting cybersecurity through real-time threat detection and response. AI-powered security systems can monitor network traffic, identify potential security breaches, and automatically respond to mitigate risks. This proactive approach to cybersecurity protects businesses' sensitive data and maintains customer trust.&nbsp;
<ol start="4">
<li aria-level="3"> Optimized IT Operations</li>
</ol>
AI is transforming IT operations by ushering in more intelligent management of enterprise infrastructure. AI-driven tools can predict system failures before they occur, automate routine maintenance tasks, and optimize resource allocation through cloud computing.&nbsp;&nbsp;
This reduces downtime, lower operational costs, and creates a more resilient IT environment. For example, AI-powered monitoring systems can detect anomalies in server performance and trigger preventive measures, ensuring the continuous availability of critical enterprise applications.&nbsp;
<ol start="5">
<li aria-level="3"> Innovation in Product Development</li>
</ol>
AI also fosters innovation in product development by helping companies create smarter, more personalized products. AI-driven insights into customer behavior and preferences allow businesses to tailor their offerings to better meet specific needs and identify new markets; this, in turn, increases customer satisfaction and loyalty. In industries such as healthcare, AI is being used to develop advanced diagnostic tools and personalized treatment plans, revolutionizing patient care.&nbsp;
Learn more about the impact of AI in Fusion’s <a href="https://www.fusionww.com/insights/blog/state-of-the-industry-report-2024-vol-2">State of the Industry Report</a>&nbsp;

It’s no secret that artificial intelligence (AI) has served as a transformative force in the tech industry, revolutionizing <a href="https://www.fusionww.com/industries/enterprise-computing-and-servers">enterprise computing solutions</a>. From improving decision-making processes to optimizing operations and enabling entirely new business models, AI is a critical component of enterprise strategy.&nbsp;&nbsp;

Memory Market Stabilization: A Look at Pricing Trends and Supplier Adaptations as 2024 Ends

With Q4 well underway, the memory market is gradually recovering amid significant price fluctuations and strategic shifts. Early 2024 saw increased demand for DDR4, DDR5, and high-bandwidth memory (HBM), prompting manufacturers to adjust production strategies while navigating ongoing supply chain challenges and evolving pricing dynamics. 

Characterized by significant production cuts and fluctuating prices, the memory market has embarked on a path of gradual recovery and strategic adaptation over the last few months.&nbsp;&nbsp;
The year began with a notable uptick in demand for <a href="https://www.fusionww.com/shop/catalog/1208/memory-modules">DDR4 and DDR5 RAM modules</a> alongside the emerging high-bandwidth memory (HBM). This surge prompted shifts in pricing and production methodologies as customers sought to mitigate potential price hikes, leading supply chain strategies to focus on optimizing cost efficiencies for memory chips.&nbsp;
Increasing Prices and Supply Chain Volatility Define First Half of 2024&nbsp;
Price escalations marked the first half of 2024 amid reports of supply chain disruptions and imbalances. SSD pricing surged by <a href="https://www.fusionww.com/insights/resources/the-greensheet-february-2024">15 to 35%</a> in January, with limited allocation for high-capacity SSDs as demand for NAND, DRAM, and CXL advancements grew.&nbsp;&nbsp;
Manufacturers signaled a turning point for the memory market. After reducing production by up to 50% for some items in the previous year, Samsung announced a renewed focus on high-value products. The company planned to ramp up the production of <a href="https://www.fusionww.com/insights/resources/from-the-sources-mouth-q1-2024">32-gigabit DDR5 supply and HBM3E to</a> meet rising demand for high-density memory products, particularly for AI applications.&nbsp;
By Q2, <a href="https://www.fusionww.com/shop/manufacturers">Samsung, Western Digital, and Micron</a> announced further price increases for memory products. Western Digital reported a shortage of<a href="https://www.trendforce.com/news/2024/04/15/news-memory-giants-reportedly-increasing-prices-but-is-the-market-outlook-truly-positive/"> HDD and SSD supplies</a>, leading to increased prices for NAND Flash and HDD, with additional adjustments expected. Samsung raised enterprise SSD prices by 20 to 25%, driven by heightened demand exacerbated by supply shortages.&nbsp;
The industry faced further challenges when a <a href="https://www.fusionww.com/insights/blog/earthquake-impacts-semiconductor-manufacturers-in-taiwan">7.2 magnitude earthquake</a> in Taiwan disrupted production in April. This disaster resulted in widespread halts and delays in pricing negotiations, with forecasts suggesting potential price hikes of up to 20% across various memory product lines. Following the earthquake, Micron temporarily suspended quoting activities; this led to a 25% increase in prices for LPDDR5 and DDR5 while lead times extended to over 12 weeks for certain components.&nbsp;
AI Continues to Drive Profitability&nbsp;&nbsp;
The rising popularity of HBM, particularly among AI customers, prompted manufacturers to pivot toward this higher-margin product, diverting support from DDR5 and DDR4 production lines. As production capacities reached maximum allocation by mid-year, significant players like Micron and SK Hynix indicated tight supply conditions would persist into 2025.&nbsp;
Looking ahead, industry leaders expect AI applications to sustain profitability through the latter half of 2024. Samsung and other key manufacturers are poised to maintain price increases, with projections of further hikes ranging from 15% to 20% in Q3. However, challenges remain within the broader <a href="https://www.astutegroup.com/news/general/dram-prices-skyrocket-amidst-ai-boom-and-production-shifts-a-deep-dive-into-the-memory-market/">consumer DRAM market</a> as it continues to undergo inventory adjustments.&nbsp;
Evolving Pricing Dynamics as 2024 Comes to a Close&nbsp;&nbsp;
As we approach the end of 2024, the memory market continues to experience dynamic pricing. While suppliers like Samsung advocate for substantial price hikes—some reports suggesting increases of up to 12% in Q4—there is noticeable pushback from customers. Industry insights indicate that a more moderate five to eight percent growth may be more realistic as buyers resist anticipated steeper jumps. The market is gradually stabilizing, with customers expressing concerns over-inflated costs, prompting suppliers to reconsider pricing strategies.&nbsp;
Analysts speculate that major suppliers, including Micron, Samsung, and Hynix, have recovered from previous losses, particularly in Q2 of this year. Consequently, the discussed price hikes for Q4 may primarily aim to boost profit margins rather than simply respond to market demand.&nbsp;
Expectations for 2025 suggest a flat or single-digit increase as the memory market adapts to changing supply and demand. Samsung's transition to a quarterly pricing model may also influence future trends.&nbsp;
Embracing Agility: The Role of Cost Savings in the Evolving Memory Market&nbsp;
Navigating further fluctuations in the memory market will hinge on cost savings and strategic sourcing. Companies must adopt agile sourcing strategies and leverage supplier relationships to mitigate risks associated with pricing volatility. By focusing on efficiency and optimizing their supply chains, organizations can better position themselves to respond to the evolving market.&nbsp;
Looking to stay out in front of pricing and availability trends in the memory market? Subscribe to Fusion Worldwide’s monthly market intelligence report, The Greensheet. This valuable resource provides updates on the latest developments across commodity groups, including enterprise commodities like RDIMM, HBM, and HDD, as well as board-level memory. Stay informed and equipped to make data-driven decisions in this ever-changing landscape. <a href="https://www.fusionww.com/insights/sign-up">Subscribe today</a>.&nbsp;
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Characterized by significant production cuts and fluctuating prices, the memory market has embarked on a path of gradual recovery and strategic adaptation over the last few months.&nbsp;&nbsp;

Top 5 Reasons to Attend Electronica 2024

Join Fusion Worldwide at Electronica 2024 in Munich to explore innovative sourcing solutions, interactive experiences, and demo our new E-commerce platform.

In the fast-paced technology sector, innovation moves at lightning speed, making it essential to stay ahead of the curve. As new advancements continuously reshape the landscape of electronic component sourcing and distribution, companies must adapt quickly to remain competitive.&nbsp;
<a href="https://www.fusionww.com/contact-us/electronica" rel="noopener" target="_blank">Electronica 2024</a> is the premier event where crucial conversations about the latest semiconductor news and technological breakthroughs unfold. Held biennially, this tradeshow gathers users, researchers, component distributors, and manufacturers from across the electronics industry to drive the future of the All-Electric Society (AES). With over 2,800 exhibitors and nearly 80,000 global visitors, this year’s Electronica promises to be a pivotal moment for electronics from the AI revolution to electromobility and smart energy.&nbsp;
Fusion Worldwide has stepped into the driver's seat to help customers navigate the challenging terrain of global supply chain management. Since we last met at Electronica, businesses have encountered unprecedented obstacles—from trade wars and geopolitical tensions to economic fluctuations. However, in the face of these uncertainties, companies can still adapt and thrive with the support of a trusted independent distributor.&nbsp;
This year, Fusion Worldwide is excited to exhibit at Electronica from November 12 – 15 in Munich, Germany in Hall C5, Booth 101. We’ve designed a cutting-edge booth experience where you can meet with our industry experts and explore our latest service offerings. Whether you're looking to streamline sourcing, manage inventory, or enhance quality testing, Fusion has the solutions you need. Here are the top five reasons to visit us at our booth this year!&nbsp;
<h1>&nbsp;</h1>
<h2>Why Visit Fusion Worldwide at Electronica </h2>
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1. Meet Our Team of Industry Experts:
<h3 style="line-height: 1.5;">Visit our booth to meet with Fusion Worldwide’s experienced sales and purchasing professionals, ready to help you get out in front of supply chain disruptions. We specialize in <a href="https://www.fusionww.com/services/sourcing-electronic-components" style="font-size: 18px;" rel="noopener" target="_blank">component sourcing</a>, <a href="https://www.fusionww.com/services/cost-savings" style="font-size: 18px;" rel="noopener" target="_blank">cost savings</a>, <a href="https://www.fusionww.com/services/excess-mitigation" style="font-size: 18px;" rel="noopener" target="_blank">excess mitigation</a>, <a href="https://www.fusionww.com/services/inventory-management" style="font-size: 18px;" rel="noopener" target="_blank">inventory management</a>, and <a href="https://www.fusionww.com/services/product-lifecycle-management" style="font-size: 18px;" rel="noopener" target="_blank">product lifecycle management</a>—providing you with the strategies you need to navigate the complexities of today’s electronics market. <a href="https://www.fusionww.com/contact-us/electronica#schedule" style="font-size: 18px;" rel="noopener" target="_blank">Schedule a meeting</a> with us to explore how we can tailor insights and solutions specifically for your business.&nbsp;</h3>
<h3>&nbsp;</h3>
2. Discover Our Latest E-commerce Service Offering:
<h3>We’re excited to unveil our new e-commerce solution offering, designed to revolutionize open-market electronic component sourcing. Stop by our booth for a live demo to see it in action. Register for an account on-site for a chance to win daily prizes worth up to $500 USD.&nbsp;</h3>
<h3>&nbsp;</h3>
3. Take A Drive in Our F1 Simulator:
<h3>Need a break from the tradeshow floor? Step into the fast lane with our F1 Race Simulator and put your racing skills to the test! Immerse yourself in the excitement of a high-speed race and compete for daily prizes worth up to $1,000 USD. Whether you’re a racing enthusiast or just looking to take part in the excitement, the F1 Simulator is an attraction you won’t want to miss.&nbsp;</h3>
<h3>&nbsp;</h3>
4. Test Your Quality Skills with Our Chip Detective Game:
<h3>Quality assurance is at the core of everything we do at Fusion Worldwide. Our team of engineers and quality control inspectors uphold rigorous testing standards across all our facilities. At our booth, you’ll learn how we combat substandard parts in the open market. Play our Chip Detective game and see if you can distinguish between authentic and inauthentic parts.</h3>
<h3>Excellence in quality standards is our top priority. We have several cross-industry <a href="https://www.fusionww.com/quality/certifications-and-memberships" style="font-size: 18px;" rel="noopener" target="_blank">certifications and memberships</a> that back our quality services and programs. Learn more about our <a href="https://www.fusionww.com/quality/process" style="font-size: 18px;" rel="noopener" target="_blank">quality process</a>, rigorous <a href="https://www.fusionww.com/quality/testing" style="font-size: 18px;" rel="noopener" target="_blank">testing</a>, and <a href="https://www.fusionww.com/quality/vendor-qualification-and-management" style="font-size: 18px;" rel="noopener" target="_blank">vendor qualification</a> by visiting us in Hall C5, Booth 101.&nbsp;</h3>
<h3>&nbsp;</h3>
5. Explore Career Opportunities with Fusion Worldwide:
<h3>Are you driven, curious, and looking for unlimited potential? Visit our booth to learn about our <a href="https://www.fusionww.com/about-us/careers" style="font-size: 18px;" rel="noopener" target="_blank">global career opportunities</a>. We have locations in 15 different countries spanning over four continents and opportunities across different job sectors. Whether you’re interested in electronic component sourcing, inventory management, sales, or quality control, we’re always looking to hire the best talent from around the world. Come by and learn what makes Fusion Worldwide such a great place to work.&nbsp;</h3>
<h1>&nbsp;</h1>
<h2>Join Us At Electronica 2024&nbsp;</h2>
We invite you to experience all that Fusion Worldwide has to offer at Electronica. From engaging with sourcing experts and diving into our cutting-edge e-commerce platform, to testing your skills in our F1 Simulator and Chip Detective game, there’s something for everyone at our booth.&nbsp; Don’t miss the chance to connect with us—<a href="https://www.fusionww.com/contact-us/electronica" rel="noopener" target="_blank">schedule a 1-on-1 meeting today</a>! We look forward to seeing you there!

In the fast-paced technology sector, innovation moves at lightning speed, making it essential to stay ahead of the curve. As new advancements continuously reshape the landscape of electronic component sourcing and distribution, companies must adapt quickly to remain competitive.&nbsp;

State of the Industry Report | Volume 2 | The Impact of AI

Explore AI's transformative impact on the electronic component industry with Fusion Worldwide's latest insights. Download our report on the impact of AI now.

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Fusion Worldwide remains at the forefront of trends in the global semiconductor industry, leveraging its expertise to deliver valuable insights into the evolving landscape. 
Our latest State of the Industry Report provides an in-depth analysis of how artificial intelligence (AI) is reshaping the electronic component supply chain. This report highlights AI's role in revitalizing demand and intensifying competition for GPUs, memory products, and networking components, sparking renewed interest and optimism among manufacturers in this burgeoning field. &nbsp;
&nbsp;
<h1 style="font-weight: bold;">Get Out in Front of 2024 with Fusion's State of the Industry Report&nbsp;</h1>
The increasing adoption of AI is driving innovation, setting new standards and promising efficiency gains in manufacturing and automation as companies seek to enhance processing power and reduce latency through advanced hardware and software solutions. Electronic component manufacturers increasingly leverage AI to catalyze recovery and expansion in response to prolonged supply-demand imbalances.&nbsp;
However, the integration of AI also presents several challenges, especially within the electronic component industry. Our report explores these obstacles, such as the complexities of adopting new technologies and the need for skilled professionals to manage AI systems effectively. It emphasizes the importance of understanding these challenges to navigate the industry confidently.&nbsp;
Fusion Worldwide's commitment to staying ahead of market shifts ensures that readers are well-informed about the latest trends and potential disruptions. The report serves as a critical resource for professionals looking to understand AI's impact on the supply chain and make strategic business decisions.
&nbsp;
Download our State of the Industry Report | Volume 2:The Impact of Artificial Intelligence on the Electronic Component Supply Chain today to gain comprehensive insights and stay ahead in the rapidly evolving world of electronic components and AI.&nbsp;&nbsp;
<a href="https://assets.ctfassets.net/jm4s6kgq3r5f/4J5sPUwmIrUvUx93la7rS0/520f7a443f9ce62cde936a38d2695e8b/FINAL_-SOTI-2024-Volume2.pdf" rel="noopener nofollow" linktext=""><img src="https://info.fusionww.com/hubfs/SOTI%20-%20Website%20Landing%20Page%20(1).png" width="5441" height="3617" loading="lazy" alt="SOTI - Website Landing Page (1)" style="height: auto; max-width: 100%; width: 5441px;"></a>
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<div title="Page 16">
Fusion Worldwide remains at the forefront of trends in the global semiconductor industry, leveraging its expertise to deliver valuable insights into the evolving landscape. 
Our latest State of the Industry Report provides an in-depth analysis of how artificial intelligence (AI) is reshaping the electronic component supply chain. This report highlights AI's role in revitalizing demand and intensifying competition for GPUs, memory products, and networking components, sparking renewed interest and optimism among manufacturers in this burgeoning field. &nbsp;
&nbsp;
<h1 style="font-weight: bold;">Get Out in Front of 2024 with Fusion's State of the Industry Report&nbsp;</h1>
The increasing adoption of AI is driving innovation, setting new standards and promising efficiency gains in manufacturing and automation as companies seek to enhance processing power and reduce latency through advanced hardware and software solutions. Electronic component manufacturers increasingly leverage AI to catalyze recovery and expansion in response to prolonged supply-demand imbalances.&nbsp;
However, the integration of AI also presents several challenges, especially within the electronic component industry. Our report explores these obstacles, such as the complexities of adopting new technologies and the need for skilled professionals to manage AI systems effectively. It emphasizes the importance of understanding these challenges to navigate the industry confidently.&nbsp;
Fusion Worldwide's commitment to staying ahead of market shifts ensures that readers are well-informed about the latest trends and potential disruptions. The report serves as a critical resource for professionals looking to understand AI's impact on the supply chain and make strategic business decisions.
&nbsp;
Download our State of the Industry Report | Volume 2:The Impact of Artificial Intelligence on the Electronic Component Supply Chain today to gain comprehensive insights and stay ahead in the rapidly evolving world of electronic components and AI.&nbsp;&nbsp;
<a href="https://assets.ctfassets.net/jm4s6kgq3r5f/4J5sPUwmIrUvUx93la7rS0/520f7a443f9ce62cde936a38d2695e8b/FINAL_-SOTI-2024-Volume2.pdf" rel="noopener nofollow" linktext=""><img src="https://info.fusionww.com/hubfs/SOTI%20-%20Website%20Landing%20Page%20(1).png" width="5441" height="3617" loading="lazy" alt="SOTI - Website Landing Page (1)" style="height: auto; max-width: 100%; width: 5441px;"></a>
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Industry Insider

Fusion Worldwide's report on trends and insights for the Industry Insider. Stay in front of shortages, disruptions, and events that affect supply chains.

<h5>Last Updated 9/16/2024</h5>
The Industry Insider is a bi-weekly collection of direct input from Fusion suppliers and customers on what they see and hear related to changes in the supply/demand balance across the electronics industry.&nbsp;

See the latest updates below in bold.
For more market intelligence, check out our quarterly analysis of manufacturer earnings reports <a href="https://www.fusionww.com/insights/resources/from-the-sources-mouth-q2-2024" rel="noopener" target="_blank">here</a>. The latest update features Infineon, Intel, Microchip, and Samsung - plus many more!&nbsp;&nbsp;
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Manufacturers
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<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 32.375px;">Affected Product</td>
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Market Trend
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Advanced Micro Devices
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<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 154px;">&nbsp;</td>
<td style="width: 58.9026%; padding: 4px; border: 1px solid #99acc2; height: 154px;">
AMD has strengthened its data center AI system capabilities by acquiring ZT Systems, a top provider of AI infrastructure for large-scale computing, in a $4.9 billion deal. This move is a key part of AMD’s long-term AI strategy, helping the company better compete in the fast-growing data center AI market. Read more <a href="https://www.datacenterknowledge.com/data-center-chips/what-amd-s-4-9b-acquisition-of-zt-systems-means-for-the-data-center" rel="noopener" target="_blank">here</a>.
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Advanced Micro Devices
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<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 596px;">Server CPU</td>
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From August on, AMD will more strictly control the pricing of its 3rd Gen Milan and 4th Gen Genoa Server CPUs.&nbsp; Open market prices are generally trending down, and this is what triggered AMD to strictly monitor and manage its Server CPU pricing. In particular, AMD is closely watching prices given to their authorized distributors.&nbsp;
AMD's Genoa series, particularly models like the EPYC 9684X and 9384X, has seen an increase in bookings, with standard lead times around 8 weeks. Overall, supply for the non-"X" series (e.g., 9754, 9654, 9554, 9354) remains healthy, with customers primarily seeking cost-saving opportunities. However, the Milan Series is becoming more limited, particularly for items like the EPYC 7713. In addition, production is heavily constrained due to CoWoS packaging technology limitations, which are affecting both Genoa and Milan "X" series chips. TSMC is struggling to meet the demand for this packaging, impacting AI and HPC chip production. Additionally, recent distributor audits have slowed product movement, with some suppliers cautious about potential repercussions from trading. Read more about AMD’s production struggles <a href="https://www.tomshardware.com/tech-industry/tsmc-struggles-meet-demand-for-cowos-packaging-holding-back-ai-and-hpc-silicon-production-report" rel="noopener" target="_blank">here</a>.
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Intel
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<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 154.219px;">Desktop CPU</td>
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Desktop customers may shift their interest back to the 12th Gen Alder Lake CPUs due to instability issues with the 13th and 14th Gen models.&nbsp; Intel has stopped offering special pricing on Alder Lake, and open market prices reflect vendors' willingness to sell at a loss to meet revenue goals.&nbsp;
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Intel
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<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 245px;">Networking</td>
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Intel is seeing increased demand for its Ethernet Adaptors, particularly the I350, E810, X710, and XXV710 models.
As Mellanox shifts its production to focus on high specs model - 200Gbps or above, Intel products on 100Gbps and below models, which could help them capture the market Mellanox is leaving behind. Currently, Intel's pricing is more competitive, and Mellanox's models are getting harder to find. If Mellanox product lead times expand further, Intel and other competitors in the 100Gbps market will see more activity.&nbsp;
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Memory Manufacturers SK Hynix Micron
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DDR3 DDR4
DDR5
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Prices for DDR3 and DDR4 memory are expected to stay stable, but DDR4 supply will gradually decrease as manufacturers focus more on DDR5 and HBM. Currently, demand for DDR3 is strongest in the industrial market, as consumer market demand is generally week. Alternatively DDR4 demand is steady.
DDR5 prices are rising, with increased demand expected in late 2024 or early next year. There's growing demand for DDR5 among major customers, and SK Hynix plans to raise LPDDR5 prices by 15-20% next month, with Micron likely to do the same by 15%.
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Micron
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Storage
</td>
<td style="width: 58.9026%; padding: 4px; border: 1px solid #99acc2; height: 127px;">
Micron's SSD pricing is set for another adjustment, with expected changes between 5-10% for capacities ranging from 480GB to 7.6TB. Demand for 3.8TB and 7.6TB SSDs has remained steady, with SATA and NVMe formats seeing the most activity.
</td>
<td style="width: 0.0179915%; padding: 4px; height: 127px;">&nbsp;</td>
</tr>
<tr style="height: 208px;">
<td style="width: 26.5722%; padding: 4px; border: 1px solid #99acc2; height: 208px;">
Molex
</td>
<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 208px;">Connector</td>
<td style="width: 58.9026%; padding: 4px; border: 1px solid #99acc2; height: 208px;">
Demand for FFC/FPC board connectors is growing, although Molex suppliers haven't seen significant changes in lead times or pricing for these components. Most Molex products have lead times of about two to three months, depending on the country of origin. However, signal type relays are facing longer lead times, now up to 36 weeks. Despite this, distributors usually have enough inventory, and any shortages will be handled individually.
</td>
<td style="width: 0.0179915%; padding: 4px; height: 208px;">&nbsp;</td>
</tr>
<tr style="height: 101.094px;">
<td style="width: 26.5722%; padding: 4px; border: 1px solid #99acc2; height: 101.094px;">
Monolithic Power Systems
</td>
<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 101.094px;">&nbsp;</td>
<td style="width: 58.9026%; padding: 4px; border: 1px solid #99acc2; height: 101.094px;">
MPS lead times are extending as supply is consistently allocated to AI-related applications. Additionally, the manufacturer is strictly requiring project end-user information to review pricing and allocation requests.&nbsp;
</td>
<td style="width: 0.0179915%; padding: 4px; height: 101.094px;">&nbsp;</td>
</tr>
<tr style="height: 264px;">
<td style="width: 26.5722%; padding: 4px; border: 1px solid #99acc2; height: 264px;">
Nvidia
</td>
<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 264px;">
GPU
</td>
<td style="width: 58.9026%; padding: 4px; border: 1px solid #99acc2; height: 264px;">
Nvidia has issued an EOL notice for several of their GPU series. Last time buy for the A6000, A5500, A5000, and A4500 is September 24th with last shipment on January 25th, 2025. The last time buy for the A2000 (12GB) and A4000 is December 24 with last shipment on April 25th, 2025. Last buy for the T1000 8GB, T1000, and T4000 (4GB) is December 25th, with last shipments on June 25, 2025.&nbsp;
Demand for the RTX 4090 remains strong as availability continues to move quickly. Prices are trending upwards in response to strong demand.
</td>
<td style="width: 0.0179915%; padding: 4px; height: 264px;">&nbsp;</td>
</tr>
<tr style="height: 154px;">
<td style="width: 26.5722%; padding: 4px; border: 1px solid #99acc2; height: 154px;">
Nvidia
</td>
<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 154px;">
&nbsp;
</td>
<td style="width: 58.9026%; padding: 4px; border: 1px solid #99acc2; height: 154px;">
As Nvidia shifts focus to higher data transmission speeds with the ConnectX-7 series, supply for the ConnectX-6 and 100GbE models is becoming more limited, leading to increased shortage demand for these older models. Prices for these highly sought-after models are unlikely to change in the near future.
</td>
<td style="width: 0.0179915%; padding: 4px; height: 154px;">&nbsp;</td>
</tr>
<tr style="height: 127px;">
<td style="width: 26.5722%; padding: 4px; border: 1px solid #99acc2; height: 127px;">
Panasonic
</td>
<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 127px;">
Integrated Circuit
</td>
<td style="width: 58.9026%; padding: 4px; border: 1px solid #99acc2; height: 127px;">
Panasonic is experiencing a significant rise in demand for components used in AI, servers, PCs, industrial PCs (IPC), and VGA. Demand for AI and server-related parts has surged by around 50%, while PC demand has grown by 30%, and IPC and VGA components have seen a 20% increase.
</td>
<td style="width: 0.0179915%; padding: 4px; height: 127px;">&nbsp;</td>
</tr>
<tr style="height: 353px;">
<td style="width: 26.5722%; padding: 4px; border: 1px solid #99acc2; height: 353px;">
Samsung SK Hynix
</td>
<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 353px;">
Memory
</td>
<td style="width: 58.9026%; padding: 4px; border: 1px solid #99acc2; height: 353px;">
The DRAM market is shifting its focus towards high-bandwidth memory (HBM), with projections estimating over $50 billion in revenue by 2025 and HBM capturing 40% of the DRAM market. SK Hynix is currently leading in HBM supply, particularly for Nvidia, although their prices are consistently 5-25% higher than Samsung's. As HBM2E becomes obsolete, the trend is moving towards HBM3E, where Hynix is positioned as a front-runner. All major HBM manufacturers are competing for Nvidia’s approval, and each HBM chip requires at least three DDR5 components, which is expected to drive up DDR5 demand and exacerbate supply shortages.
In response to this shifting market, Samsung plans to implement a double-digit price increase for DRAM in Q4. However, due to customer pushback, they expect the increase to be moderated to 5-8%.
</td>
<td style="width: 0.0179915%; padding: 4px; height: 353px;">&nbsp;</td>
</tr>
<tr style="height: 154px;">
<td style="width: 26.5722%; padding: 4px; border: 1px solid #99acc2; height: 154px;">
Xilinx
</td>
<td style="width: 14.5252%; padding: 4px; border: 1px solid #99acc2; height: 154px;">
Integrated Circuit
</td>
<td style="width: 58.9026%; padding: 4px; border: 1px solid #99acc2; height: 154px;">
Xilinx suppliers are experiencing delays with Last Time Buy (LTB) series parts as some deliveries are pushed to next year. There is no full guarantee on these orders, as they are still subject to manufacturer and distributor review and allocation. Prices are rising due to limited availability, though overall demand has only increased slightly.
</td>
<td style="width: 0.0179915%; padding: 4px; height: 154px;">&nbsp;</td>
</tr>
</tbody>
</table>
&nbsp;
</div>

<h5>Last Updated 9/16/2024</h5>
The Industry Insider is a bi-weekly collection of direct input from Fusion suppliers and customers on what they see and hear related to changes in the supply/demand balance across the electronics industry.&nbsp;

Fusion Ranks #3 on Electronics Sourcing's Top Global Distributors List

Fusion Worldwide ranked highly in Electronics Sourcing's 2024 Top Global Independent Distributor List, released on September 2nd, 2024.

Fusion Worldwide has ranked #3 in Electronic Sourcing’s <a href="https://flickread.com/edition/html/index.php?pdf=66c5d0b1a9953#74">Top 25 Global Independent Distributors Report</a>, featured in the September 2024 edition. This award highlights Fusion Worldwide's commitment to growing with its customers and offering the solutions necessary to strengthen supply chains.&nbsp;&nbsp;
"From shortage to surplus markets, we continually refine and expand our offerings to meet the ever-changing needs of our clients," says Luke LeSaffre, Chief Revenue Officer at Fusion Worldwide. " Our growth and adaptability have positioned us among the top companies in the industry, a testament to our unwavering focus on innovation and excellence."&nbsp;
With over two decades of experience, Fusion Worldwide continues to lead in open-market distribution, providing steadfast support through every market cycle to ensure customers stay out in front of an ever-shifting market landscape. Our expansive network of 20 locations worldwide highlights our relentless pursuit of quality and customer satisfaction, solidifying our position as a leader in the competitive sourcing industry.&nbsp;
&nbsp;
<a href="https://www.fusionww.com/about-us/story?utm_campaign=2024%20Branding%20Ads&amp;utm_source=Fusionww.com&amp;utm_medium=Blog%20-%20Organic%20Content&amp;utm_content=Fusion%20Evergreen" rel="noopener" target="_blank" style="font-style: italic; font-weight: bold;">Learn more about our story</a> 
&nbsp;

Fusion Worldwide has ranked #3 in Electronic Sourcing’s <a href="https://flickread.com/edition/html/index.php?pdf=66c5d0b1a9953#74">Top 25 Global Independent Distributors Report</a>, featured in the September 2024 edition. This award highlights Fusion Worldwide's commitment to growing with its customers and offering the solutions necessary to strengthen supply chains.&nbsp;&nbsp;

From the Source's Mouth | Q2 2024

Fusion Worldwide’s analysis of semiconductor manufacturers’ quarterly earnings call transcripts with insights to upcoming demand, capacity, and supply trends.

From the Source’s Mouth is Fusion Worldwide’s analysis of semiconductor manufacturers’ quarterly earnings call transcripts. This report provides insights into upcoming demand, capacity, and supply trends based on market information directly from the source. The most recent update features the following manufacturers.

Fusion Worldwide's Guide to Quality

In the semiconductor industry, maintaining the highest quality control standards is paramount. With the industry evolving and the demand for semiconductors surging, product integrity and reliability have become increasingly critical. The open market — known for its speed, variety, and flexibility — is vital in meeting these demands by providing access to a diverse range of suppliers and components.

In the semiconductor industry, maintaining the highest quality control standards is paramount. With the industry evolving and the demand for semiconductors surging, product integrity and reliability have become increasingly critical. The open market — known for its speed, variety, and flexibility — is vital in meeting these demands by providing access to a diverse range of suppliers and components. However, this also underscores the necessity for stringent quality control measures to ensure that only the best products reach the market.&nbsp;
Fusion Worldwide stands at the forefront of this challenge, offering unparalleled <a href="https://www.fusionww.com/quality/process">quality control processes</a> that set the benchmark for the industry. To dive deeper into how we achieve this and how it benefits your operations, our quality guide offers comprehensive insights.&nbsp;
<blockquote>
“We are committed to continuous improvement and making sure our customers always receive the highest quality products and the best possible experiences,” Paul Romano, COO at Fusion Worldwide.&nbsp;
</blockquote>
&nbsp;
Our Expertise&nbsp;
Fusion’s quality control program starts with its people—highly qualified, experienced specialists who ensure that every process meets our rigorous standards. Our quality team includes 35+ degreed engineers and multiple IDEA-ICE-3000 inspectors, all of whom are responsible for maintaining strict guidelines across every quality center. &nbsp;
Our Quality Process&nbsp;
Quality control in semiconductor distribution is essential throughout the supply chain process, especially in the open market where the risk of counterfeit components is higher. Every single part that Fusion sources undergoes an extensive 100-point inspection process. This rigorous system, which is used consistently across all quality control centers, guarantees that everything is clear, traceable, and accountable throughout the supply chain. &nbsp;
Our Global Quality Centers&nbsp;
As technology advances, so do the methods and processes for ensuring the highest quality in semiconductor distribution. Fusion’s quality control centers leverage the latest technology, continuously investing in advanced testing facilities. This commitment not only streamlines operations but also contributes to overall cost savings and improved operational efficiency. Our quality guide delves into how our state-of-the-art facilities and technological investments place us at the cutting edge of quality assurance.&nbsp;
Since acquiring Prosemi, the largest test house in Southeast Asia, Fusion has expanded from its original 4,900-square-foot facility into a new, state-of-the-art, 26,500-square-foot home. With enhancements like automated programming equipment and JTAG boundary scan capabilities, Fusion’s quality offerings have reached new heights. &nbsp;
Bottom Line: Quality Starts with Fusion Worldwide&nbsp;
In a rapidly evolving industry like semiconductor distribution, staying ahead requires not just meeting, but exceeding quality standards. Fusion Worldwide's commitment to rigorous quality control ensures that every component we handle meets the highest levels of integrity and reliability. Our state-of-the-art facilities and expert team are dedicated to continuous improvement, setting us apart in an increasingly competitive market.&nbsp;
&nbsp;<a href="http://fusionww.com/quality/process#quality-guide-sign-up" rel="noopener"><img src="https://info.fusionww.com/hubfs/Your%20Guide%20to%20Quality%20Control%20in%20Semiconductor%20Distribution.png" width="377" height="377" loading="lazy" alt="Your Guide to Quality Control in Semiconductor Distribution" style="height: auto; max-width: 100%; width: 377px;"></a>
To learn more about how our quality process can benefit your business and why it stands out in the industry, <a href="http://fusionww.com/quality/process#quality-guide-sign-up" rel="noopener">download</a> our comprehensive quality guide today.&nbsp;

In the semiconductor industry, maintaining the highest quality control standards is paramount. With the industry evolving and the demand for semiconductors surging, product integrity and reliability have become increasingly critical. The open market — known for its speed, variety, and flexibility — is vital in meeting these demands by providing access to a diverse range of suppliers and components. However, this also underscores the necessity for stringent quality control measures to ensure that only the best products reach the market.&nbsp;

Faces of Fusion: Marcus Chen

Marcus Chen joined Fusion Worldwide in 2008 as an Account Executive, stepping into the dynamic and fast-paced world of electronic component distribution with a drive that has defined his career. 

Marcus Chen joined Fusion Worldwide in 2008 as an Account Executive, stepping into the dynamic and fast-paced world of electronic component distribution with a drive that has defined his career. He has played a vital role in Fusion’s sales organization across the APAC region, earning the President’s Club Award in 2010 and 2012, which led to his promotion to Director of Sales in 2013. His appointment as Vice President of Sales in Asia in 2021 was a testament to his blend of experience, strategic insight, and unwavering commitment. Most recently, Marcus was promoted to Executive Vice President, a reflection of his continued leadership and success within the organization.&nbsp;

No two days are the same at Fusion Worldwide, reflecting the industry's diversity and pace. As a sales leader, Marcus is deeply involved in transaction discussions. The unique nature of each deal often requires innovative solutions backed by timely market intelligence—a challenge Marcus embraces.
<blockquote>
“We have a saying that no two deals are the same, and creativity is often needed to ensure we meet our customers’ requirements,” says Chen.
&nbsp;
</blockquote>
Collaboration is at the heart of Fusion Worldwide’s success, and Marcus is a strong advocate of this culture. His team regularly exchanges information to stay informed about supply chain issues and market dynamics. Whether an employee has been with Fusion for three months or three years, every individual’s input is valued.
This collaborative spirit extends beyond Marcus’s immediate team. He frequently engages in cross-office discussions, sharing insights from colleagues worldwide. At Fusion, knowledge-sharing is encouraged and embedded in the company’s DNA, ensuring everyone can access the information and support they need to succeed.
One of Marcus’s most significant achievements at Fusion has been expanding the company’s presence across Asia. When he joined, Fusion had just one office in Singapore. Today, Fusion boasts five fully staffed offices in Seoul, Shenzhen, Bangalore, Tokyo, and Taipei—an expansion that took just five years.
Opening a new office each year came with its own set of obstacles, from navigating local regulations to hiring talent and securing office space. However, the mentality that they “must and will” succeed has fueled a relentless pursuit of excellence, contributing to Fusion’s rapid and successful expansion.
&nbsp;
“The future of our industry is bright. Technology, semiconductors, and AI are not just buzzwords for us—we live and breathe them,” says Chen. He says about Fusion and its employees' role in this high-growth industry: "Our systems, processes, and culture, developed over 20 years, provide the best platform for pursuing a rewarding sales career.”
&nbsp;
&nbsp;
Fusion credits its strength, endurance, and success to its people. Meet more of the team on &nbsp;<a href="https://www.fusionww.com/about-us/team">Our Team page</a>.   &nbsp;
Are you interested in a career at Fusion? We're always looking for talented people to join our team! See open roles <a href="https://www.fusionww.com/about-us/careers">here</a>.
&nbsp;

Marcus Chen joined Fusion Worldwide in 2008 as an Account Executive, stepping into the dynamic and fast-paced world of electronic component distribution with a drive that has defined his career. He has played a vital role in Fusion’s sales organization across the APAC region, earning the President’s Club Award in 2010 and 2012, which led to his promotion to Director of Sales in 2013. His appointment as Vice President of Sales in Asia in 2021 was a testament to his blend of experience, strategic insight, and unwavering commitment. Most recently, Marcus was promoted to Executive Vice President, a reflection of his continued leadership and success within the organization.&nbsp;

Engineering Resilience: How Independent Distributors Uphold Quality Standards in Electronics Components

In today's rapidly advancing technological world, engineers play a critical role in upholding quality standards. Those standards ensure that the products distributed through the global electronic component supply chain exceed customer expectations in industries where safety, efficiency, and durability are paramount.

In today's rapidly advancing technological world, engineers play a critical role in upholding quality standards. Those standards ensure that the products distributed through the global electronic component supply chain exceed customer expectations in industries where safety, efficiency, and durability are paramount.

In industries like automotive, healthcare, and aerospace and defense, upholding quality standards is not just about efficiency. Quality is essential for ensuring safety and preventing life-threatening consequences. A single counterfeit part or subpar component can have significant adverse effects throughout the supply chain, ultimately impacting the individual end user or patient.
Fusion Worldwide and its in-house testing facility, Prosemi, understand the importance of quality and strive to maintain the high standards engineers depend on. This dedication begins at the sourcing stage, where the independent electronic distributor's experienced buyers meticulously vet suppliers and their products before engaging in business. This commitment to quality is upheld throughout the entire Quality Assurance cycle, ensuring that every product is thoroughly inspected before it reaches the customer's hands.
Through a strict supplier qualification and management process, the independent distributor reduces potential risks, protects its customers' brand reputation, guarantees regulatory compliance, and supports continuous production.
"Quality assurance is a core focus for Fusion Worldwide's quality team," says Krishna Ganason, the company's Director of Engineering. "This commitment requires a keen understanding of how likely it is that something will occur, even before we bring in the parts into our own quality control department."
Bringing Engineering Power In-House 
Fusion Worldwide also employs a team of over 35 degreed engineers and implements an 18-month-long quality control apprenticeship program. "Certified and experienced engineers are critical to the robust inspection and testing capabilities and processes," says Po Man Chan, Quality Director, APAC, for Fusion Worldwide. Traceability is equally important. "With our self-developed, powerful system Scout RMS, all transaction records are traceable. Fusion also requires its suppliers to maintain all records to provide traceability anytime a customer asks for it."
These are just some of the measures that Fusion Worldwide and Prosemi have implemented to ensure that engineers have consistent access to the quality parts and components they need. The two companies also hold a wide range of industry certifications and accreditations that further prove their commitment to only selling quality, reliable products.
"Fusion Worldwide has several certifications to avoid fraudulent and counterfeit electronic parts entering the supply chain and from posing significant performance, reliability, and safety risks," Ganason explains. "For example, the AS6081 standard establishes requirements and practices to mitigate the risk of buying, receiving, and selling fraudulent or counterfeit parts, therefore giving customers confidence in their own supply chains."
Fusion Worldwide is also AS9120B-certified. Tailored for the aerospace and defense sector, this certification affirms the independent distributor's adherence to stringent Quality Management System (QMS) standards. This certification validates the company's ability to supply authentic components consistently. It also assures customers of their performance reliability, which is crucial in mission-critical applications where failure is not an option.
Test, Test, and then Test Again 
In-house testing—which very few distributors offer—is another game-changer for engineers who need to know that the products they're designing or testing are built with reliable parts and components. Prosemi's in-house testing capabilities help Fusion Worldwide maintain strict quality control standards throughout the supply chain.
Prosemi scrutinizes incoming products for defects or inconsistencies, preventing subpar items from reaching customers. This boosts customer satisfaction and preserves the distributor's reputation for reliability and excellence in the industry. In-house quality testing also helps Fusion Worldwide respond quickly to potential issues, conduct immediate assessments, and implement corrective measures without relying on external testing services.
Prosemi provides several critical measures so engineers can trust the components they select for their products. These processes include:
<ul>
<li style="margin-top: 12pt; margin-right: 0in; margin-bottom: 0.0001pt;">Certified inspectors follow IDEA ICE 3000 standards, meticulously overseeing components from receipt to shipment to ensure their reliability and durability.</li>
<li>Comprehensive visual inspections, dimensional measurements, lead inspections, and marking permanency testing are performed to identify any discrepancies or irregularities.</li>
<li>Advanced techniques such as scrape and acetone testing to further enhance the scrutiny process, effectively preventing counterfeit infiltration.</li>
<li>Fusion Worldwide's QC Inspection Team utilizes cutting-edge technology and technical expertise, applying various tools and methods for thorough inspection.</li>
<li style="margin-top: 0in; margin-right: 0in; margin-bottom: 12pt;">Keyence Microscope 2000x and X-ray Fluorescence (XRF) analysis examine the intricate details of components, revealing any anomalies or inconsistencies.</li>
</ul>
Prosemi and Fusion Worldwide have implemented these steps to give engineers peace of mind, knowing that the components they specify and incorporate into their products are of the highest quality. These steps are taken on every order, which means customers can always rely on Fusion Worldwide to deliver on its promises.
"Electronic components are the foundation for all different types of engineered advanced devices and technologies, so any substandard quality products will lead to huge loss in terms of material costs, company reputation, and customer loyalty," Chan says. "Any reliability or safety issues could potentially impact not only the organization itself, but also human lives, the environment, and entire societies."
Your Guide to Quality Control in Semiconductor Distribution 
At Fusion Worldwide, we're committed to being your trusted partner, providing the expertise and resources to help you make confident, informed sourcing decisions. <a href="http://fusionww.com/quality/process#quality-guide-sign-up">Download our new Quality Guide</a> to learn how we protect and strengthen our customers' supply chains.
&nbsp;

In today's rapidly advancing technological world, engineers play a critical role in upholding quality standards. Those standards ensure that the products distributed through the global electronic component supply chain exceed customer expectations in industries where safety, efficiency, and durability are paramount.

The Greensheet: August 2024

August 2024 | Fusion Worldwide's monthly semiconductor market trends - IC/CPU/Memory/Finished Goods

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&nbsp;
The Greensheet is Fusion Worldwide's monthly market intelligence report detailing the most significant developments across the memory, hardware, central processing unit, and integrated circuit supply chains.&nbsp;&nbsp;
Here are some key takeaways from our latest report:   &nbsp;
<ul>
<li data-leveltext="" data-font="Symbol" data-listid="2" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Micron, Samsung, and SK Hynix continue to adjust memory prices, driven by continuous demand from AI customers. As these manufacturers strategically shift production capacity towards newer components, customers brace for EOL notices on older memory modules. </li>
<li data-leveltext="" data-font="Symbol" data-listid="2" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">In the storage market, HDD demand is outpacing production, which is causing increases in pricing and lead times. However, SSD costs remain higher than HDDs and have jumped by 10-25% due to similar fluctuations in NAND flash pricing. </li>
<li data-leveltext="" data-font="Symbol" data-listid="2" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Weak PC demand impacts the CPU market, causing suppliers to worry about excess supply. However, market analysts indicate demand is set to recovery after shipment trends show signs of a rebound. </li>
<li data-leveltext="" data-font="Symbol" data-listid="2" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">A recent surge in demand for PMICs is impacting Monolithic Power Systems’, causing lead times to extend and a trickledown effect for other brands as they see a rise in demand for their alternative products.&nbsp;</li>
</ul>
The inventory correction cycle seems to be coming to an end as the market begins to stabilize. Lead times have notably returned to pre-pandemic levels, with only minor exceptions for legacy and specialty processed parts. Many suppliers predict a major demand increase in late Q4 2024 and early 2025, as positive book-to-bill trends support the idea that Q2 ’24 marked the bottom of the current cycle.&nbsp;
Learn more about the market happenings in the full report below.  &nbsp;
</div>
<div>
<section>
</section></div>

The Greensheet: July 2024

July 2024 | Fusion Worldwide's monthly semiconductor market trends - IC/CPU/Memory/Finished Goods

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The Greensheet is Fusion Worldwide's monthly market intelligence report detailing the most significant developments across the memory, hardware, central processing unit, and integrated circuit supply chains. Here are some key takeaways from our latest report:  &nbsp;
<ul>
<li data-leveltext="" data-font="Symbol" data-listid="4" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Micron expands capacity for HBM as 2024 supply sells out.</li>
<li data-leveltext="" data-font="Symbol" data-listid="4" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">The HDD market experiences an uptick in activity thanks to AI-related customers, leading to supply constraints.</li>
<li data-leveltext="" data-font="Symbol" data-listid="4" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">CPU market slumps slightly as demand remains minimal and customers focus on cost savings.</li>
<li data-leveltext="" data-font="Symbol" data-listid="4" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">IC manufacturers and distributors increase order costs as forecasts indicate recovery may be delayed until later in the year.&nbsp;</li>
</ul>
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The supply chain is under pressure due to rising AI-related demand and logistical challenges. Memory prices, especially for DRAM and NAND, are set to increase through 2025 due to tight availability and high demand from AI servers. The HDD market faces supply constraints, with prices expected to rise for high-capacity drives. CPUs and ICs are also seeing fluctuations, with excess supply and extended lead times causing market disruptions.&nbsp;
Learn more about the market happenings in the full report below. <span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:240,&quot;335559740&quot;:240}" style="background-color: transparent;">&nbsp;
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From the Source’s Mouth Wrap Up – Calling the Bottom of the Cycle

In the dynamic semiconductor industry, calling the bottom is crucial as it marks the anticipated end of a downward trend and the start of recovery.

In the dynamic semiconductor industry, calling the bottom is crucial as it marks the anticipated end of a downward trend and the start of recovery. Despite short-term challenges, most manufacturers are optimistic about their upcoming quarterly projections.&nbsp;&nbsp;
Based on market reports and information from the surveyed manufacturers, these were the common themes in earnings this quarter:&nbsp;
<ul>
<li data-leveltext="" data-font="Symbol" data-listid="23" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Eighteen manufacturers are bullish about growth and recovery, driven by improving market conditions, new product launches, and increased demand across various segments.</li>
<li data-leveltext="" data-font="Symbol" data-listid="23" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Five manufacturers maintain a cautious optimism, expecting a gradual recovery while staying alert to persistent challenges.</li>
<li data-leveltext="" data-font="Symbol" data-listid="23" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Positive developments in the consumer and traditional server markets suggest a stronger recovery is likely by 2025 as the industry tackles ongoing inventory issues.</li>
<li data-leveltext="" data-font="Symbol" data-listid="23" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Market analysts expect a subdued outlook for the second half of 2024 due to slow order growth and uncertain visibility, with occasional signs of improvement.&nbsp;</li>
</ul>
The following summaries, pulled from manufacturers' earnings calls, indicate a mix of cautious confidence and specific growth drivers for each company, reflecting various stages of recovery and market stabilization in the semiconductor and electronic component industries.&nbsp;
Taiwan Semiconductor Co (TSMC) expects the recovery for the semiconductor market, excluding memory, will be milder and more gradual as TSMC is more cautious in its outlook.&nbsp;
Seagate stated nearline cloud markets may reportedly have reached their bottom as the company saw signs of recovery driven by improving market conditions and demand.&nbsp;
MaxLinear's overall revenue has likely hit its bottom. The company expects to return to sequential growth in 2024, driven by new product launches in optical data center interconnect, enterprise Ethernet, storage accelerators, 5G wireless, multi-gigabit PON broadband access, and WiFi connectivity.&nbsp;
Silicon Laboratories and Lattice echoed a similar sentiment, expressing optimism about recovery and expecting revenue growth to continue. Improvements in inventory levels and bookings suggest a bottoming trend, with the companies seeing stabilization and further growth ahead.&nbsp;
Diodes noted improvements in product mix and new product introductions, particularly in the automotive sector, as key initiatives to support market expansion. The company believes these efforts will naturally improve underloading situations and drive market expansion.&nbsp;
Microchip is cautiously optimistic about hitting the bottom of the cycle by June, with some recovery expected by September. The company sees a mix of positive indicators and ongoing challenges, highlighting the importance of effectively managing revenue trajectories and factory utilization.&nbsp;
Infineon indicated that consumer, computing, communication, and IoT markets are bottoming but not yet recovering. The company sees typical late-cycle behavior in industrial markets and notes temporary headwinds in the automotive sector despite some green shoots and structural drivers in AI and microcontrollers.&nbsp;
Western Digital highlighted a cyclical recovery, mainly driven by the increasing value of data and demand for AI-related storage. The company is not declaring victory but feels optimistic about increasing profitability as market conditions balance supply and demand.&nbsp;
STMicroelectronics believes Q2 marks the bottom point and expects growth in H2, with automotive and personal electronics showing the most promise. The company is confident in its visibility on backlog and sees some green spots indicating a return to growth.&nbsp;
Intel views Q1 as the bottom and expects sequential revenue growth to strengthen throughout the year. This recovery is supported by enterprise refresh cycles, data center recovery, and AI capabilities driving demand for Xeon processors.&nbsp;
Renesas maintains that the first quarter was the bottom, with steady growth expected in the automotive segment and strong performance in AI and data center markets. However, some segments, such as industrial and mobile, will see continued sluggishness.&nbsp;
NXP noted that the Industrial &amp; IoT markets troughed in Q1 2023, with improving demand in China. The company expects a modest cyclical recovery in mobile and sequential growth in communications infrastructure driven by secure RFID tagging.&nbsp;
Samsung expects a gradual recovery in market conditions, with double-digit quarter-to-quarter growth following a bottom in Q1. Strong demand for AI servers and related cloud services, alongside stable demand in the mobile sector, is anticipated to drive this recovery.&nbsp;
Sanmina believes the communications market is approaching the bottom after several quarters of decline. The company sees normalization in the supply chain and more predictable forecasts, indicating an end to the downturn.&nbsp;
Advanced Micro Devices (AMD) notes that the first half of the year was the low point for its embedded business, as gradual recovery is expected through the rest of 2024. Strong performance in the data center segment will drive gross margin expansion, with further tailwinds from the improving embedded market.&nbsp;
Qualcomm identified the December fiscal first quarter as the bottom, with sequential growth into March and expectations for continued growth into the September quarter. The company anticipates improvement through the year, particularly in the IoT segment, driven by new product launches in consumer, industrial, and WiFi 7 sectors. This indicates that Qualcomm sees signs of recovery and bottoming in its market segments.&nbsp;
Wolfspeed anticipates the industrial and energy (I&amp;E) markets to begin recovering in the first half of 2025. While there are short-term headwinds on gross margins due to a shift in product mix, Wolfspeed anticipates a recovery starting next year.&nbsp;
Vishay expects the inventory correction to extend through the second quarter, with a recovery in the second half of the year, particularly in the passive components market serving aerospace and defense. Bookings are also improving in some industrial and computing end markets. The semiconductor recovery is likely to extend into the third quarter. The company is optimistic about its capacity to supply market demands reliably in all cycles.&nbsp;
Skyworks remains optimistic about long-term growth, particularly in AI workloads, automotive, and industrial markets, despite current headwinds and a steep inventory correction. The company sees opportunities for growth in the automotive sector, indicating a cautious but positive outlook for recovery.&nbsp;
Analog Devices (ADI) believes it is at the beginning of a cyclical recovery, with bookings increasing and exiting Q2 with a book-to-bill ratio above parity for the first time in over a year. The company expects continued growth during the second half of the year and is confident about a brisk growth year in 2025. ADI sees strong indications of an upward trajectory and expects utilization rates to increase as demand picks up, aiding in margin expansion.&nbsp;
Marvell is encouraged by stabilizing order patterns in enterprise networking and expects inventory normalization and recovery in the second half of the fiscal year. The carrier end market has shown signs of picking up first, with an anticipated return to growth. The company is optimistic about better visibility and a stronger second half, driven by next-generation products and market demand recovery.&nbsp;
Broadcom believes this quarter marked the bottom for server storage and anticipates a modest recovery in the second half of fiscal '24. They expect fiscal '24 server storage revenue to decline approximately 20% year-on-year. Broadcom forecasts that non-AI semiconductor revenue will bottom out in Q2 and recover modestly in the latter half of 2024.&nbsp;
Micron anticipates a robust recovery in the memory industry by the second half of 2025. They expect mid-to-high solid single-digit growth in server shipments, driven by AI and traditional servers. This growth, coupled with tight supply conditions and price increases, particularly in data centers and High Bandwidth Memory (HBM), is projected to significantly enhance profitability and support future investments for sustained market expansion.&nbsp;
For more detailed summaries of statements made during manufacturers’ earnings calls this fiscal season, please read "<a href="https://www.fusionww.com/insights/resources/from-the-sources-mouth-q1-2024" rel="noopener" target="_blank">From the Source’s Mouth</a>," where Fusion’s market analysts review quarterly reports to provide insights into supply and demand trends within the electronic component industry.&nbsp;

In the dynamic semiconductor industry, calling the bottom is crucial as it marks the anticipated end of a downward trend and the start of recovery. Despite short-term challenges, most manufacturers are optimistic about their upcoming quarterly projections.&nbsp;&nbsp;

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