The rapid global expansion of the pandemic has deferred the shipment schedule of servers and affected the supply of key components, says TrendForce, market intelligence provider for technology agencies.
According to the latest investigations by the DRAMeXchange research division of TrendForce, owing to the pandemic’s expansion in Philippines and Malaysia – both major manufacturing sites of non-memory server components – there now exists a “potential risk of supply chain breakage in the 2H20 server market”.
According to TrendForce, “Given that several of Intel’s assembly facilities are located in Malaysia, should the country extend its national lockdown, the production schedule of servers will be impacted in the mid- to long-term as a result. On the other hand, some of Samsung’s back-end server DRAM packaging operations are based in Luzon, the Philippines. Therefore, the continued quarantine of Luzon may affect the shipment schedule of Samsung’s server DRAM modules.”
However, the report remain upbeat, “Overall server shipment is expected to remain on the upswing in 2Q20, owing to strong orders for data centre servers and traditional server brands’ pre-emptive stock-up demand to avoid pandemic-induced breaks in the server supply chain.”
They concluded that as 1Q20 was a relatively high base period, server shipment is projected to grow by a mere 7-9% QoQ in 2Q20, falling short of the usual double-digit QoQ growths in past second quarters.
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