The supply of 4G SoCs and PA components for both 4G and 5G models are falling short of demand, but may ease by the end of 2020, according to IC distribution sources.

The 4G SoC shortages mainly result from Huawei moving to thicken its IC inventory for lower-tier handsets by placing massive orders with chips vendors before tough US sanctions took effect in mid-September, the sources said.

The sources continued that as PAs are increasingly applied to IoT devices in addition to handsets, the delivery lead time at FR and PA IDMs including Skyworks has extended to 8-12 weeks, but the tight supply is expected to gradually ease by the end of the year.

Demand for 5G SoCs is expected to grow steadily from Chinese handset vendors, but order visibility will hinge on sales performance of 5G smartphones at the upcoming November 11 shopping festival in China and the Chinese New Year holidays, the sources said.

IC distributors will have to adjust their inventories for handset IC components amid uncertain demand, but they will continue to enjoy stable shipments of logic and analog ICs as well as memory chips for desktops and notebooks supporting remote work and study applications, the sources added.

Source: https://www.digitimes.com/news/a20201103PD204.html

4G, 5G, System on a chip, Distribution, Integrated circuit

World news – CA – 4G SoCs, handset PAs in short supply at distributors

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