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Industry sources said that chip orders for servers and data centers have begun to increase, and the momentum of orders is expected to continue until the first half of 2022.

According to the "Electronic Times" report, according to IC design companies such as MediaTek, Speed, Realtek Semiconductor, Parade Technologies and ASMedia Technology, chip orders from server customers will increase in the third quarter.

It is understood that since the new crown pneumonia epidemic in Europe and North America was gradually brought under control, local cloud computing data center operators have been expanding chip orders since early 2021, and are optimistic about the surge in demand that may occur after the epidemic becomes normal.

According to reports, several data center operators have planned to further increase their orders in the second half of 2021. Intel and AMD’s new server CPUs are also expected to stimulate demand for upgrades and replacements in 2021.

The above news is also in line with the previous forecasts of research institutions.

TrendForce released a report yesterday (27th) stating that the momentum of server shipments in 2021 will continue to be driven by the post-epidemic new normal, including data center construction plans of major global cloud service providers, acceleration of enterprise cloud migration, and roadside servers for self-driving cars, and industrial 4.0 and other technological developments.

It should be noted that the supply chain length and material issues of the server market have not been resolved before, and the product delivery cycle of some key components has been extended. However, recently, the production of smartphones in India has been severely impacted by the local epidemic, forcing brand factories to downgrade the production volume, and related production preparations have been reduced.

Therefore, TrendForce believes that the key components required by the server will be able to meet production needs from the second quarter, and the problem of long and short materials is gradually being resolved.

In terms of chip supply, TrendForce emphasized that server-related memory chip purchases have not yet cooled down. Although DRAM makers have actively shifted production capacity to server DRAM, they have not yet fully met market needs. According to TrendForce estimates, server DRAM prices may increase by 3-8% in the third quarter.