Electronic Components Supply Chain

Preparing for 2024 DRAM and NAND Flash Pricing Challenges and Potential Shortages

Preparing for 2024 DRAM and NAND Flash Pricing Challenges and Potential Shortages

DRAM and NAND Flash Shortages

Lately, the memory market has seen considerable volatility, affecting the contract prices of both DRAM and NAND Flash.

Speculation about a possible shortage in the latter half of 2024 is driven by information indicating that top manufacturers, such as Samsung, Micron, and SK Hynix, have reduced their production outputs to increase the DRAM and NAND Flash prices. This has raised concerns about the availability and price stability of these components.

Understanding the Emerging DRAM Shortage

The semiconductor industry is currently abuzz with speculation regarding a potential DRAM shortage. According to TrendForce, DRAM contract prices are estimated to increase by approximately 13-18% in the first quarter of 2024.

The potential shortage can be traced back to a series of market adjustments following an oversupply and subsequent price decline in 2023. In response to these market dynamics, DRAM manufacturers adjusted their output, which, coupled with a resurgence in demand — especially for high-bandwidth memory (HBM) chips used in AI and server applications — may lead to supply constraints.

There is also speculation among industry experts that these production cuts may partly serve to artificially sustain high DRAM prices, thereby safeguarding manufacturers’ profitability following a period of reduced margins.

NAND Flash Contract Prices on the Rise

Following a similar pattern to DRAM, NAND Flash contract prices are also on the rise. NAND Flash contract prices are projected to see a 15-20% rise in the first quarter of 2024, echoing a trend similar to DRAM.

This increase is primarily driven by manufacturers raising prices aggressively to recoup losses from the previous year, amidst market outlook uncertainties. A significant factor influencing future price adjustments is the demand for enterprise SSDs, with procurement activities expected to push enterprise SSD contract prices up by 18-23%.

Additionally, eMMC and UFS products are facing substantial price hikes due to production cuts, leading to increased contract prices in the range of 18-23%, driven by the need to avoid shortages amid stable smartphone and Chromebook demand.

NAND Flash wafer contract prices are anticipated to experience a more moderate increase of about 8-13%, as manufacturers aim to enhance profits through price adjustments.

Implications for Procurement Strategies

The speculative nature of the current DRAM and NAND market situation, characterized by a lack of concrete data on production capacities and demand forecasts, presents a complex challenge for purchasing professionals.

The potential shortage raises concerns about increased costs and limited availability of essential components for products ranging from personal computers to servers and smartphones. It is imperative for procurement departments to closely monitor these developments, as they may significantly affect sourcing strategies and cost structures.

Strategic Recommendations for Purchasing Professionals

Scheduled Ordering

In response to the unpredictable fluctuations in DRAM and NAND Flash contract prices, purchasing professionals should consider adopting a scheduled ordering strategy.

Lantek Corporation’ scheduled ordering service helps mitigate the risks of price volatility and availability concerns. It allows customers to secure their annual requirements upfront and store them in a Lantek warehouse, drawing on this inventory only as needed.

This strategy offers the dual benefits of price stability and flexible inventory management without the initial financial outlay. Components can be paid for as they are deployed, ensuring a cost-effective approach to managing supply chain risks and maintaining cash flow efficiency.

Market Monitoring

Vigilant observation of DRAM price trends, production volumes, and manufacturer announcements is crucial for timely and informed decision-making.

Transparency and Communication

Engaging with suppliers to gain clearer insights into their plans and capacity allocations can help in anticipating supply challenges.


Exploring alternative memory technologies and suppliers can mitigate risks associated with supply bottlenecks and ensure continuity in component sourcing.

Inventory Management

Consider strategic stockpiling of DRAM components in anticipation of potential shortages, balancing the costs of inventory holding against the risks of supply disruptions.

Contract Negotiation

Long-term contracts with suppliers, incorporating flexible terms around volume and pricing adjustments, may provide a buffer against market volatility.

Navigating Uncertainty with Strategic Foresight

The semiconductor industry is characterized by cyclical patterns, and the current landscape of rising contract prices for both DRAM and NAND Flash reflects this trend.

In the face of these challenges and uncertainties, Lantek Corporation stands as a beacon of reliability and assurance for purchasing professionals. Our expertise as a global distributor specializing in shortage, hard to find, and obsolete electronic components positions us uniquely to support your procurement strategies amidst the potential DRAM and NAND Flash shortages.

By leveraging our extensive network and deep market insights, we ensure the timely delivery of high-quality components, mitigating the risks associated with market volatility. Our scheduled ordering services offer a strategic advantage, allowing you to lock in prices and spread deliveries throughout the year, ensuring both cost-effectiveness and supply chain stability.

Trust Lantek Corporation to navigate you through the complexities of the current market trends with strategic foresight and unparalleled reliability. Get in touch today on 1-973-579-8100 or email to discuss how we can support your electronic component procurement strategy.

Electronic Components Supply Chain

Greener Gears: Michigan’s Clean Energy Push

Greener Gears: Michigan's Clean Energy Push and Lantek's Solutions for a Sustainable Automotive Future

Automotive manufacturing

In a landmark move for the heartland of American manufacturing, Michigan Governor Gretchen Whitmer has signed into law a package targeting 100% clean energy by 2040. This ambitious green revolution extends beyond clean streets and air – it sets the stage for a transformed automotive industry.

As a leading global distributor of electronic components, at Lantek Corporation we are keenly aware of the opportunities and challenges this presents for our automotive customers in Michigan and around the world. We understand the need to adapt, innovate, and embrace sustainable solutions to meet the demands of this green future.

Shifting Gears: The Roadmap to a Sustainable Automotive Landscape

The path to clean energy in the automotive industry starts with electrification. With the shift in electric vehicle manufacturing, spearheaded by giants like Michigan-based automaker General Motors planning to phase out all gasoline and diesel-powered vehicles worldwide by 2035, the demand for advanced electronic components that power electric vehicles will skyrocket.

However, securing these critical resources amid ongoing global supply chain constraints can present significant challenges for purchasing professionals.

Lantek Corporation – Your Partner in the Green Automotive Revolution

Lantek recognizes these complexities and stands as a robust and reliable partner for automotive enterprises navigating this dynamic terrain. Our unparalleled expertise enables us to address the core concerns of procurement teams.

Global Sourcing Network: Leveraging our extensive network of established relationships with vetted suppliers around the globe, we source even the most elusive components, ensuring uninterrupted production schedules.

Strategic Inventory on In-Stock Electronic Components: We maintain a strategically optimized buffer of over 1 billion electronic parts, mitigating the impact of volatile supply chain fluctuations and guaranteeing operational continuity.

Allocation Optimization: Our team of seasoned procurement specialists possesses a deep understanding of allocation nuances, allowing us to secure vital components and granting your organization a distinct competitive edge.

Comprehensive Solutions: Lantek serves as your one-stop partner for a diverse array of electronic components, eliminating the need to engage with multiple vendors and reducing administrative burdens.

Quality and Delivery Excellence: We employ sophisticated component testing procedures and measures to protect the authenticity and reliability of every component, safeguarding your production lines and brand reputation. We prioritize timely deliveries through our robust logistics network, ensuring components arrive on time and ready for immediate deployment.

Collaborative Partnerships: We foster close relationships with our customers, diligently analyzing their unique needs and challenges. This collaborative approach allows us to proactively identify alternative solutions and optimize component selection for cost, performance, and future scalability.

Lantek transcends the role of a mere supplier; we are your strategic partner, empowering your organization to seamlessly navigate the evolving electrification landscape across the globe.

Let’s shift gears together and conquer the road to a sustainable automotive future. Contact Lantek today to discuss how we can help your automotive business thrive in the clean energy era.

Electronic Components Supply Chain

US Japan critical minerals agreement

US Japan critical minerals agreement

The US and Japan agreed last week to strengthen their supply chains of critical minerals like cobalt, lithium and nickel.

The agreement

In the agreement, signed on March 28, the partners agreed to not impose export duties between the US and Japan on critical minerals. They also said they would take action to address non-market policies of other countries that impact the critical minerals trade.

As the US diversifies its trading partners, they risk further complications in its critical minerals supply chain.

As part of the agreement the investments made by foreign powers in the industry will be reviewed. The allies will also upgrade their
information-sharing and enforcement in relation to labor rights violations.

Trade Representative for America Katherine Tai said Japan was a valued trading partner. She said the partnership
was a welcome moment to strengthen the critical minerals supply chain.

Japan’s Ambassador to the US, Tomita Koji, added that securing critical minerals was vital. This, he said, was partly due to the
increased demand for electric vehicles and the batteries powering them.


The two countries made other trade agreements in relation to the semiconductor industry. The countries made an agreement in July last year to create a joint research center for next-generation semiconductors.

The agreement was brought in for similar reasons, to soften America’s relationship China.

The US and Japan said during the launch that they want to establish supply chain resilience in the sector, and said they would build a strong battery supply chain.

Are you looking for a partner?


Lantek is a company that always puts its customers’ needs first. We will work with you to make sure we source all the electronic
components you’re looking for. Contact us today on 1-973-579-8100 or via email at

Electronic Components Supply Chain

Domestic manufacturing increases consumer cost

Domestic manufacturing increases consumer cost

Since the introduction of the Chips Act increased costs were a cause for concern. Many manufacturers and suppliers have expressed a worry that the various cost increases involved in reshoring production would affect business. The major impact of this would be a raised cost of consumer electronic devices at the end of the road.

The upside

With the Act in place, and export restrictions on China being introduced, the chip industry faces an interesting predicament. On one hand the Act will increase the number of jobs. It could also give the US a more stable position in the global market. Not only that, but it will encourage foreign investment in the US economy and bring consumers to domestic producers.

All in all it is expected to improve the US chip industry hugely, and the profits and products of it will mean America is a real competitor in the market.

The downside

Unfortunately, though, there are a few downsides as well. The cost of most things, including building new fabs and training new staff, is more expensive in the USA. There is currently much less semiconductor infrastructure in place here.

Compared to countries like Taiwan and China, which are already set up for mass production, the US will have to invest a great deal of time and money. Additionally, the labor and equipment is cheaper in Asian countries. Some experts in the industry have predicted the cost of making a chip could increase by 40%

According to one research firm, the cost of a fab in the US can be 80% more than in Taiwan. This isn’t exactly attractive for investors.

The impact on consumers

There has been a massive range of estimates on how much the end-user will be affected by reshoring. One of the most often-discussed products is the smartphone. Providers like Apple and Samsung have had to reorganise thanks to the Act, and change their future plans.

In addition to the chips needed for the phone itself, the cameras also require separate chips and components. The cost of a new iPhone, for example, could increase by $100. Other experts have estimated eye-watering estimates of a $30,000 increase, but this is less likely.

Many companies are expected to try and mitigate the cost passed onto customers. It’s worth noting it won’t be possible, or economical, to do this entirely. There are incentives included in the Chips Act to offset these costs too, but those will only go so far.

A steadfast ally

While the Chips Act might change the chip landscape, Lantek’s stellar service will stay exactly how you like it. With Lantek being a global supplier, we will be able to see which avenue will be more cost effective for your production and guide you in whatever component needs you have. Call us today on 1-973-579-8100, or email us at

Electronic Components Supply Chain Technology

New US India semiconductor partnership

New US India semiconductor partnership

The US recently formed a partnership with India with an aim to cooperate in several industries, including semiconductor production. This is
hoped to be a very fruitful partnership, especially since the increase in restrictions between China and the US.

Recent changes

More companies have been investing in India in recent years, including Vedanta-Foxconn, PSMC and Micron Technology. Partly thanks to new government incentive schemes, companies are trying to move manufacturing into the country. More are expected to follow as India increases its funding for semiconductor manufacturing.

The Indian Government and related parties have announced several incentives for incoming companies. One of the largest was that there would be a 50% waiver on the cost of establishing a fab.  

The US and Indian Semiconductor Associations (SIA and IESA respectively) have also formed a taskforce to strengthen collaboration. The taskforce plans to assess the country’s readiness to sustain a semiconductor market and make recommendations to increase its presence in the
supply chain.

But it hasn’t been easy. Many incoming companies have mentioned difficulties with a lack of infrastructure, difficult regulations, and other struggles.

The competition

India could also potentially help in the sourcing of minerals for semiconductor production. Currently much of the world’s supply (72%)
comes from China, which could prove troublesome soon enough. 

However, India is apparently abundant in 49 critical and non-fuel minerals that are used in the industry according to a report by the Council on Energy, Environment and Water (CEEW) and the Ministry of Science and Technology.

Work away


Another potential benefit to the States is the new ‘friend-shoring’ location it has unlocked. While the Chips Act attempts to move much of the
process to domestic, this won’t be entirely achievable.

The high cost of labor and the lack of highly-skilled employees within the field will prove challenging. In a collaboration with India, however, it would provide a manufacturing location with manageable labor costs. It could also pave the way for highly-skilled professionals from India
to work in the US.

There are hopes that this collaboration is the next big milestone for the countries since the 2016 nuclear power agreement.

A different kind of partnership

We have a steadfast relationship with all of our customers, thanks to the trust and reliability we are known for. Lantek Corporation can fulfil
all your electronic part needs, all you need to do is contact us. We’re available at or call us on 1-973-579-8100.

component shortage Covid-19 Electronic Components Supply Chain

Lantek 2022- a year in review

Lantek 2022- a year in review

As 2022 comes to an end, we at Lantek are reflecting on the many ups and downs of the year and the great things that will be happening in 2023. 

This year was yet another year of challenges for finding product and then the even bigger challenge to find stock at pricing that customers can afford. Lantek was able to work with many companies this year to help avoid lines down situations. The years of experience from all of our staff
played a major role in that.


This past November we were able to meet up with long time and even some new customers at Electronica in Munich. Some conversations were
had about the market and where everyone sees it going but more importantly, it was a chance to just sit and talk face to face with people we haven’t seen since 2018!

Frank Cervino, our GM, said this: “After so many years, catching up with customers and suppliers during these uncertain market
conditions was very beneficial. It was also a pleasure to spend time with the Cyclops Group and be present on the stand.”


As our year ends on December 22, we will be having a Christmas lunch brought in for us all to enjoy.

In January, Lantek will be marking its 29th year in business and what a way to celebrate but with our new office and warehouse

We are hoping to be able to start moving product by mid-February.

We will take volunteers to help with that! (If any of you have ever been to NJ in the winter, you will appreciate the challenge this will be)

See you next year!

In closing we would like to wish all of you a very happy holiday season and may your 2023 be a prosperous and positive one!

We will be back in the office on January 3, 2023 for any and all of your electronic component needs. Please contact us at 973.579.8100 or at

Electronic Components Supply Chain

UK Government asks for views on supply chain security

UK Government asks for views on supply chain security

UK’s Department for Digital, Culture, Media and Sport (DCMS) has called for views on security measures across digital supply chains and IT services, including data processing, infrastructure management and supplier assurance.

The call comes as more organizations move their operations online and pivot to digital business models. A few obvious examples are retailers moving online and car manufacturers offering cars on subscription, which may kill showroom sales.

As organizations increasingly move their operations online, it’s a given that digital supply chains and third-party IT service operators will become more vital. The government wants to take a leadership role in helping organizations make the transition.

Call for Views

The Call for Views focuses on two parts:

Part 1 seeks input on how organizations across the market manage supply chain cyber risk and how government intervention would help.

Part 2 seeks input on the suitability of a proposed framework for Managed Service Provider security and how it can be appropriately implemented.

You can read more about the Call for Views here.

The information submitted by organizations will be used to develop new policy solutions that support organizations in cyber risk management.

However, responses are not limited to organizations and all those that have an interest in supply chain cyber risk management are being asked to provide their opinions.

Security comes first

The government wants to ensure that organizations can properly review the cyber security risks coming from suppliers and their supply chains.

The National Cyber Security Centre (NCSC) already offers a raft of support to help organizations assess the security risks of their suppliers, however the government wants to go further and is asking for views from organizations on this matter.

They have requested views on existing guidance for supply chain risk cyber management and they are testing a new security framework with some firms. This is a managed service provider framework, which requires Managed Service Providers to meet the current Cyber Assessment Framework so feedback can be collected.  

Want to take part?

If you wish to take part in the Call for Views, you can complete the online survey. If you are unable to complete the survey, you can email your response to or send it via post to the following address:

Call for views on supply chain cyber security

Cyber Resilience Team – 4/47


100 Parliament Street



Covid-19 Electronic Components Supply Chain

Electronic component supply chain efficiency. Will we see another increase in supply and demand due to COVID-19 this year?

Supply chain efficiency: Will there be another demand increase due to Covid-19 this year?

In 2020, the electronics components industry saw both increases and decreases in supply and demand depending on where you look.

For example, demand for semiconductors that enable servers, connectivity and cloud usage skyrocketed due to stay at home workforces. Meanwhile, demand for semiconductors used in the automotive industry declined as car sales fell.

In other words, the supply and demand for electronic components was different across various sectors. Now that 2020 is behind us, 2021 is looking to follow much the same path as we continue to contend with COVID-19.

However, there will be one big difference – most of the sectors that had reduced demand for components in 2020 will ramp up their purchase orders in 2021. This is the result of economies opening up and companies getting back to operations.

Supply and demand in 2021

We believe the electronic component industry will witness a significant increase in supply and demand in 2021. There are a few reasons for this. The first is that most industries hampered by the COVID-19 pandemic will open up. Car manufacturing is the big one. This will fuel a surge in demand for semiconductors and sensors.

2021 will also play host to cyclical sectors and several tailwinds. 5G, Wi-Fi 6, AI, robotics, cloud, communications, edge computing and AR / VR are the big ones. These technologies will fuel demand for new electronic components.

Supply constraints will persist

Factories will have to ramp up production to meet demand. 2019 was a bumper year for electronics and a lot of infrastructure was built to meet demand. 2020 stuck a fork in the road, placing higher demand on certain components. In 2021, demand will return to a form of previous normality, increasing supply constraints.

We expect supply constraints of components to grow in 2021. Manufacturers will struggle to get a hold of the parts they need.

This will increase the need for partnerships with electronic component distributors like us who are ingrained into the fabric of the industry.

Things will get better over time

With the global rollout of the coronavirus vaccine in place and manufacturing sectors protected from Government shutdowns in most countries, 2021 should be a year where we see supply constraints reduce over time.

Supply and demand will get back to 80% normality toward the end of 2021. 2022 should be much better. This assumes we get to grips with this horrible virus.

In the meantime, tailwinds will continue to fuel demand for electronic components in sectors like AI and edge computing. COVID-19 has only accelerated digital transformation in most sectors. This is a powerful tailwind.

Ultimately, the demand for passive and active components will increase in 2021. You can make sure you have access to the components you need by partnering with us. We specialise in the procurement and delivery of electronic components and parts for a wide variety of industries from the world’s leading manufacturers.