Taiwan-based server ODMs run substantial parts of their production locally, but they will be able to shift server production to manufacturing sites in other countries should COVID-19 result in lockdowns affecting their local operation. Chinese handset brands reportedly are mulling cutting chip orders because of fast weakning sales in China and India. But most other fabless firms are unlikely to cut back their wafer starts at foundry houses, as they are still eager to secure foundry capacity. Demand for MCUs remains strong, sending prices up.
Taiwan server ODMs brace for lockdown impact: Taiwan-based server ODMs are all capable of shifting production to their factory sites overseas if COVID-19 is spreading out of control in Taiwan resulting in a nationwide lockdown, according to industry sources.
Chipmakers unlikely to cut back wafer starts at foundries: Fast decelerating handset sales in India and Southeast Asia have prompted China-based brand vendors to consider slashing their chip orders, but fabless chipmakers particularly those specializing in automotive electronics, HPC and 5G related chips are unlikely to cut back wafer starts at foundries amid the already-tight foundry supply, according to industry sources.
MCU prices set to rise again: Taiwan-based MCU suppliers are likely to raise their quotes shortly as STMicroelectronics reportedly has notified clients that it will hike the prices for its MCU lineup again starting the third quarter, according to industry sources.