The global semiconductor shortage is now becoming a glut

October 29 2022 12

The global semiconductor shortage appears to have officially "accelerated" its course in the other direction and thus turned into a surplus. Leading semiconductor manufacturers are currently experiencing a glut of chips, according to a new report from Caixin. Leading chip makers are now dealing with unsold inventory. OilPrice writes about this.

Slower demand and canceled orders left manufacturers with "unsold stocks" of semiconductors. This means that the multi-year chip delay seems to have officially come to an end.

Xie Ruifeng of semiconductor industry market research institute ICwise said that business sentiment is changing so rapidly right now that chip developers struggled to find manufacturing capacity last year, but now that the issue has been resolved, they have found that the chips will not sell.

Meanwhile, demand for smartphones and PCs is declining, and global shipments of 5G smartphones are expected to fall by 150 million units in 2022, the report said. It also says that demand for 5G chips will also fall by 100 million units, to 120 million units.

Meanwhile, manufacturers are dealing with "six months of inventory" in warehouses that they built up as a result of a shortage in 2021 amid optimistic demand forecasts, trying to meet it. This was, of course, at a time when free money was being handed out to “fight” the pandemic. Now that monetary policy has tightened around the world policy, no wonder demand has plummeted.

In this situation, microchip manufacturers are taking a huge risk. All the massive new infrastructure projects that companies like Intel and TSMC are taking on as a result of last year's deficit will still move forward, OilPrice experts concluded.

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Rinat

+6

29 October 2022 08: 19

We are witnessing the "charms" of the market-bazaar method of conducting the national economy. No planning. The market will put everything in its place. So we sang the last of the liberal, capitalist model. What will you sing tapericha?
1. Corcap
  
  +9
  
  29 October 2022 09: 36
  
  Quote: Rinat
  We are witnessing the "charms" of the market-bazaar method of conducting the national economy. No planning.
  
  "It's thick, it's empty"
  
  "The market will adjust"Yeah, keep your pocket wide...
  1. passing by
    
    -3
    
    30 October 2022 06: 56
    
    China's economic growth over the past few decades is indeed a model that many less developed countries can build upon.
    
    Obviously, the centralized form of economic management under Mao Zedong did not work well in China.
    
    It was only when the economic reforms established by Deng Xiao Ping were implemented that the PRC's economic machine really began to gain momentum and brought this country to the second stage of world GDP.
    
    The point of China's new economic policy, launched in the 80s, was not to eliminate communism, but to reduce the central government's control over economic aspects and facilitate natural market mechanisms.
    
    In the late 1970s, after the death of Mao Zedong, China lagged far behind not only the industrialized countries of Europe and the West, but also its more prosperous neighbors Japan, South Korea, Taiwan and Singapore.
    
    While these countries competed with the rapid modernization of the West, the Chinese people suffered from shortages of food, housing, clothing rationing, and services that were very underdeveloped and inefficient. The economic model of the USSR, which they applied for several decades, failed.
    
    The USSR with its planned economy also failed ...
    1. lance is gone
      
      +2
      
      30 October 2022 10: 34
      
      it was not the planned economy that failed, but the partocrats who came to power with an eye to the west. China, as it kept the public sector at the core, does not release it, with the maximum control over the free-developing market component.
      1. Nuka
        
        +2
        
        1 November 2022 18: 43
        
        Quote: lance vosirob
        it was not the planned economy that failed, but the partocrats who came to power with an eye to the west. China, as it kept the public sector at the core, does not release it, with the maximum control over the free-developing market component.
        
        That's it! And in less than twenty years, the planned economy allowed the USSR to emerge from the devastation of the civil war on an industrial footing, win the most brutal and bloody war, and then recover in record time, and moreover, become a nuclear and space power.
        
        And what did market capitalism give Russia? Loss of almost 20% of the population and about 90% of industry, general impoverishment and hunger. And all this, mind you, without a war, all these losses occurred in peacetime, but exceeded the damage from the Second World War.
        
        And what is the conclusion, I ask you?
  2. prior
    
    +1
    
    30 October 2022 08: 23
    
    The market is like that.
    Yesterday the crayfish were small "three", large "five". Now there will be "a hundred" regardless of size.
Dictator

+2

29 October 2022 08: 51

Quote: Rinat
What will you sing tapericha?

The Russians and anti-Russian sanctions, which were introduced in order to teach the Russians a lesson, are to blame for everything.
1. Corcap
  
  +7
  
  29 October 2022 09: 37
  
  Quote from Dictator
  The Russians and anti-Russian sanctions, which were introduced in order to teach the Russians a lesson, are to blame for everything.
  
  That's just it, that instead of lifting the sanctions, they are trying to cancel the Russians and Russia ...
smart fellow

+2

29 October 2022 12: 55

Until mid-2023, low prices are predicted for computer components, especially DRAM and SSD.
1. Corcap
  
  +6
  
  29 October 2022 14: 11
  
  Quote: smart fellow
  Until mid-2023, low prices are predicted for computer components, especially DRAM and SSD.
  
  And it pleases
2. goncharov.62
  
  0
  
  29 October 2022 16: 08
  
  Your words, yes to God's ears! ... And don't forget the HDD ... For 18 or more TB ...
vlad127490

+1

30 October 2022 12: 22

When will Russia start building factories for the production of radio components, factories for the production of radio equipment ??? We need our own industry, not someone else's market bazaar.