The global shortage of semiconductors has officially become an excess. Names like Taiwan Semiconductor Manufacturing Co (TSMC), Advanced Micro Devices Inc (AMD), and Nvidia have “unsold inventory” due to shrinking demand and canceling orders. This is according to a report by the Caixin media group.
Meanwhile, the demand for smartphones and computers is shrinking. Global shipments of 5G smartphones are expected to decline by 150 million units in 2022, the report said. Demand for chips will also shrink by 100 million to 120 million units.
“Until last year, chip designers struggled to find manufacturing capabilities, but now they are finding that chips don’t sell,” said the semiconductor industry market research institute.
According to Caixin, TSMC is facing a significant reduction in orders. It is the largest contract chip maker in the world. It now faces reduced orders from four of its largest customers, reflecting a slowdown in global demand. According to a report by JPMorgan Chase, since early September AMD, Nvidia, Qualcomm and MediaTek have reduced their chip orders from TSMC.
AMD and Intel are also suffering from the slowdown in demand
AMD lowered its revenue forecast for the third quarter, citing a significant market slowdown. In the first half of 2022, macroeconomic headwinds and other factors led to a sharp drop in demand for consumer electronics, with smartphones and computers taking the brunt.
Micron expects global PC shipments to decline by 10% to 20% in 2022, while the global smartphone market will decline by less than 10%.
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