March 29, 2023

After half a year, the chip industry is in dire straits

When Intel broke ground this spring on two $20 billion chip factories, President Joe Biden hailed them as the cornerstone of America’s future. At that time, the chip industry was extremely hot, and the shortage of semiconductors caused by the new crown epidemic contributed to the shortage of chips. After half a year, the semiconductor industry is now icy and hot water, major semiconductor companies have warned of declining revenue, including Intel, Micron, AMD and Nvidia. Investment in the chip industry is cyclical, and increased capacity in response to increased demand will be realized in a few years, by which time demand may have declined. PCs and smartphones account for about half of the $600 billion in annual semiconductor industry sales, and consumers facing inflation today are reducing demand for such products. The buying spree during Covid-19 is an advance on demand. Chip shortages last year also contributed to a buildup of corporate inventories, which analysts estimate are about 40 percent higher than historical levels. Both PC and auto companies face high inventories.

Ewen Eagle

I am the founder of Urbantechstory, a Technology based blog. where you find all kinds of trending technology, gaming news, and much more.

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