The global semiconductor shortage appears to have officially 'bullwhipped' its way the other direction and, as such, as become a glut.
The global semiconductor shortage has slipped into a glut.Slowing demand and canceled orders have left manufacturers with “unsold stockpiles” of semiconductors.
Meanwhile, smartphone and PC demand is shrinking, with global 5G smartphone shipments expected to fall by 150 million units in 2022, the report says. Demand for 5G chips will also plunge by 100 million units, to 120 million units, the report says.TSMC, the world’s largest contract chipmaker, faces reduced orders from four of its largest customers, reflecting slowing global demand.
And manufacturers are dealing with"six months of stockpiles" that they built up as a result of 2021's shortage...and once-optimistic demand forecasts. That was, of course, at a time when free money was being handed out to"combat" the pandemic. Now, with tighter monetary policy globally, it should be no surprise that demand is falling off.