News You Can Use – 5.27.19 – 5.31.19

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As the leading independent distributor of electronic components, Smith tracks open-market activity and conditions as an early indicator of trends and supply chain disruptions. Industry news provides important and time-sensitive information when strategically procuring components, planning for NPIs, or making any critical decisions in the supply chain.

We’ve curated a selection of this week’s industry articles that we feel can help customers gain relevant, useful knowledge and prepare for any supply chain requirements.


Taiwan MOSFET supply chain gaining rush orders from Huawei

To cushion impacts from the U.S.-China tariff implementations, Huawei is rumored to be placing rush orders through Taiwan-based MOSFET makers. Mosel Vitelic, one of Taiwan’s 6-inch wafer facilities, is boosting its equipment utilization rate to 60-70%, up from 50% during April. The foundry house has pushed its monthly wafer capacity to 2,000-3,000, a situation never seen before. Huawei is expected to use these MOSFETs in its smartphone and server products. It is unclear whether these rumored rush orders will continue or have any global impact. The overall global demand for MOSFETs has remained lackluster in recent months, partly due to the tight supply of Intel CPUs. Read More [1]


The dominoes keep falling – Flex halts shipments to Huawei

Flex, one of Huawei’s smartphone producers, has reportedly halted production at its Zhuhai, China plant in response to the U.S. placing Huawei on its “Entity List.” Three out of the four production lines at the Flex Zhuhai plant have stopped, and workers are on leave for the time being. Additionally, Flex’s manufacturing operations in India have stopped shipments to Huawei in order to comply with the U.S. government’s ruling. Flex is working to comply with regulatory requirements to make sure the company remains in adherence to trade laws. Read More


Pegatron Eyes up to $1 Billion Indonesia Investment to Assemble Apple Phone Chips: Deputy Minister

Pegatron has signed a letter of intent to spend up to $1 billion on a new factory in Batam, Indonesia. The company plans to assemble chips for Apple smartphones at this location in partnership with Indonesian electronics company PT Sat Nusapersada. Deputy Minister Warsito Ignatius confirmed to the media that only the assembly would be taking place at the factory, while raw materials will be imported. The short-term goal is to assemble chips for Apple smartphones, but MacBook and other consumer products have not been ruled out as future projects. Read More


Google to splash $670M on new Finland data center

Google announced plans this week to expand its data center presence in Finland. The latest infrastructure build, expected to total $670 million USD, will bring the company’s total investment in Finland to €1.4 billion.

“The demand for Google services is growing daily, and we are building our data center infrastructure to match this demand,” Google’s Finland country head Antti Järvinen said in a statement. The company currently has five data centers in Europe and 58 worldwide. Read More


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