Experts say the chip market is facing an “inventory correction”, which could be the worst downturn in a decade, as the global economy weakens and demand fades
Even in an industry famous for its roller-coaster cycles, chipmakers are bracing for a particularly severe shift in coming months … Tweets: @pelstrom , @shiraovide , @pelstrom , @pelstrom , @ru_unforgiven2 , @iancutress , @pstasiatech , @tomtugendhat , @adam_tooze , and @andrewtghill Tweets: Peter Elstrom / @pelstrom : The global economy appears to be heading into recession, which would aggravate the downturn. There's also a broad push by governments to subsidize new factories, from the US and Europe to China and Japan. There are 24 major fabs under construction this year, well above average. Shira Ovide / @shiraovide : So a bunch of countries just subsidized more chip supply* at the same time that chip demand is turning south? *(Also possible that taxpayer funds for chips don't increase supply but shift where the supply is made. Plus new capacity takes A WHILE.) https://www.bloomberg.com/... Peter Elstrom / @pelstrom : “It used to be a competition between companies,” says one analyst. “Now it's a competition between countries because of the strategic importance.” https://www.bloomberg.com/... Peter Elstrom / @pelstrom : “It's sort of darkly humorous,” says @BernsteinRasgon. “The politicians are going to find out how quickly shortages can resolve themselves when the industry turns.” @ru_unforgiven2 : “Desktop processor shipments dropped to their lowest level in nearly three decades in the second quarter, according to Mercury Research. Total processor shipments experienced their largest year-over-year falloff since about 1984.” https://www.bloomberg.com/... @iancutress : And yet automotive manufacturers are still crying out for silicon. https://twitter.com/... Paul Triolo / @pstasiatech : The semiconductor boom: has the UK missed its chance? Nexperia is already operating facilities in the UK and Tugendhat concedes that Newport Wafer Fab is not a cutting-edge silicon chipmaker. https://www.ft.com/... Tom Tugendhat / @tomtugendhat : Our need to rapidly develop semiconductor infrastructure has gone from critical to existential. We cannot leave a backdoor into our systems. We need to build capacity to guard our security. https://www.ft.com/... Adam Tooze / @adam_tooze : How market share varies with the type of chip production. informative this piece by @andrewtghill on UK chip microchip policy and industry. https://www.ft.com/... https://twitter.com/... Andrew Hill / @andrewtghill : Chips, China, and the fate of a small factory in South Wales - is Britain's upside-down, inside-out semiconductor policy fit for purpose? My analysis https://www.ft.com/... Expand More For Next Unexpand More For Next
So a bunch of countries just subsidized more chip supply* at the same time that chip demand is turning south? *(Also possible that taxpayer funds for chips don't increase supply but shift where the supply is made. Plus new capacity takes A WHILE.) https://www.bloomberg.com/...
The semiconductor boom: has the UK missed its chance? Nexperia is already operating facilities in the UK and Tugendhat concedes that Newport Wafer Fab is not a cutting-edge silicon chipmaker. https://www.ft.com/...
The global economy appears to be heading into recession, which would aggravate the downturn. There's also a broad push by governments to subsidize new factories, from the US and Europe to China and Japan. There are 24 major fabs under construction this year, well above average.
Our need to rapidly develop semiconductor infrastructure has gone from critical to existential. We cannot leave a backdoor into our systems. We need to build capacity to guard our security. https://www.ft.com/...
“It used to be a competition between companies,” says one analyst. “Now it's a competition between countries because of the strategic importance.” https://www.bloomberg.com/...
“It's sort of darkly humorous,” says @BernsteinRasgon. “The politicians are going to find out how quickly shortages can resolve themselves when the industry turns.”
“Desktop processor shipments dropped to their lowest level in nearly three decades in the second quarter, according to Mercury Research. Total processor shipments experienced their largest year-over-year falloff since about 1984.” https://www.bloomberg.com/...
How market share varies with the type of chip production. informative this piece by @andrewtghill on UK chip microchip policy and industry. https://www.ft.com/... https://twitter.com/...
Chips, China, and the fate of a small factory in South Wales - is Britain's upside-down, inside-out semiconductor policy fit for purpose? My analysis https://www.ft.com/...
1/two key pts: Liang vs co-CEO Zhao Haijun: “While Liang wants to continue pushing forward with the development of cutting-edge technology, Zhao has advocated focusing on expanding less advanced capacity to gain market share.” this co-CEO debate has been going on for years https:…
“The furore over SMIC's progress is quite overblown — they are using extra exposure to make up for the lack of EUV,” says Douglas Fuller, an expert on the Chinese semiconductor industry. “But it is understood that the yield is terrible.” https://www.ft.com/...
2/@niubi “The furore over SMIC's progress is quite overblown — they are using extra exposure to make up for the lack of EUV,” says Douglas Fuller... “But it is understood that the yield is terrible.” not a real tech breakthrough if so far far away from commercially viable
Terrible yield in production but it is not about profitability, it is all about catching up to TSMC and the West for national pride https://twitter.com/...
And must read commentary by @KathrinHille in @FT on China'a SMIC on whether the latest breakthrough on chips with lead to ramped up production allied to country's strategic goals https://www.ft.com/...
On SMIC's dilemma—their production process is less efficient—I guess China has little choice but to support it as it has no access to other technologies yet.
“A breakthrough by China's largest chipmaker revealed last month triggered a gasp of surprise among observers outside the industry. ... But how much time and money will SMIC sink into producing its new semiconductor at scale?” https://www.ft.com/...