According to analysts at Jefferies Group, several semiconductor manufacturers will face component surpluses in late 2022/early 2023. Market researchers expect a fairly sharp inventory correction, which could potentially lead to larger profit drops for many companies compared to the quieter periods of 2019 and 2016.
This excess supply is explained by the combination of increasing stocks on the one hand and falling demand in various sectors on the other. In addition, chip suppliers state that their professional customers continue to place orders in very high volumes despite the decreasing demand.
In addition to smartphones, global PC shipments also fell in the first quarter of 2022.
Ironically, a surplus doesn’t mean the shortages in the industry are completely gone: earlier today, Sony said it could only sell more PS5 consoles in two years than the PS4 of the same age, and Intel CEO Pat Gelsinger also warned that the shortcomings won’t be fully remedied by 2024. explained once again.
Sources: Jefferies (via The Register), Yahoo
Source: Hardware Info
