Highlights of the day: Server demand remains strong
The server and datacenter sector has been almost immune to the coronavirus, with demand being boosted by remote working and learning, online gaming and shopping in the wake of the pandemic. Server ODMs expect their shipments to pick up in the second quarter fof 2020. Demand from the server and datacenter sector has also shored up NAND flash prices, but memory distributors are becoming conservative about demand from the consumer sector. For the handset market, some industry observers believe the 5G smartphone market in China will regain momentum in the second quarter, thanks to the Chinese government’s aggressive moves and investments to stimulate demand.
Server ODMs expect shipments to pick up in 2Q20: ODMs expect shipments for servers to pick up in the second quarter, and continue to grow steadily despite the coronavirus pandemic, according to sources from the upstream supply chain.
Memory distributors turn cautious: Memory distributors have turned cautious about demand due to the coronavirus pandemic, and are slowing down their chip purchases, according to industry sources.
China 5G phone market likely to regain momentum in 2Q20: China’s 5G phone market is expected to regain momentum starting the second quarter of 2020, as the Chinese government is exerting all-out efforts to construct its 5G infrastructure and to perfect related 5G communication environments, according to sources from Taiwan’s IC supply chain.