Serious risk to bare board supply

New disruption- Resin supply alert!

• Approximately 70% of global high-purity PPE resin supply remains offline following disruption to production
• Lead times have extended from ~3 weeks to up to 15 weeks for key
materials

Leadtime Increasing

• Conflict in the ME was always going to impact supply chain within our industry.
• Capacity within far east factories is dominated by:

• AI Demand
  $350M Google contract
  $250M Amazon contract
  Microsoft preordered 6 months capacity within factories

Memory

• Major suppliers (SK Hynix, Samsung, Micron) are focusing on HBM production, leading to shortages in DDR4/DDR5 LP.
• Micron’s DDR/LPDDR4 lead time has extended to 40 weeks, prompting longer supply pipeline planning.
• Price increases are expected, with reports of 20-30% hikes on several DRAM lines.
• Prices being held from 5 days to 30 days max.

Discretes

• Nexperia issue having a knock-on effect to other discrete manufacturers due to x-referencing for alternative supply.
• Lead times increasing across to board. Some out as far as 30 wks +.

What does this mean to you?

As a partner to ADAPT we need to work together to mitigate the risks that we have shared above to ensure continuity of supply.

Kind regards

Annette Grimshaw – Purchasing Manager