Are you ready to rethink your memory supply chain strategy?

The electronics industry is in tumultuous waters. Similar to any other industry, lockdowns, border closures, the war in Ukraine, trade wars, and shifts in supply and demand have affected the industry. This year, 83% of semiconductor parts showed increased lead times according to IHS Markit. As demand continues to outpace chip supply, manufacturers have responded strategically by favoring newer products and variants over older generations. Planned obsolescence is not a new trend in the electronics industry. In the past ten years, manufacturers discontinued more than fifty thousand electronic component device types.

In the memory industry, Samsung and SK Hynix recently announced that they are phasing out production of DDR3 in favor of DDR4 and DDR5. According to industry insiders Samsung is expected to stop accepting orders for DDR3 by the end of this year and make their last deliveries by the end of 2023. Companies with complex supply chain networks and those producing life-long applications are especially vulnerable to internal and external disruptions like these. 

With imminent structural shifts in the DRAM industry, it is a good time for users of embedded memory chips to rethink their supply chain strategy. A proactive strategy is key to ensuring continuity in the supply chain and navigating potential risks. Long-term planning reduces the chance of exposure and allows for flexibility. Upfront due diligence and identification of alternative components are cornerstones to successful memory chip supply chain management. As this can be a daunting task in an industry in flux, working with a reliable memory chip supply chain partner like SMARTsemi is the gateway to more efficiency, resilience, and flexibility.