Posted on 09/12/2022 7:57:28 PM PDT by FarCenter
IC Insights reduced its worldwide IC market growth forecast for 2022 from 11% to 7% in its August Quarterly Update to The McClean Report. The downgraded expectation for this year is almost entirely due to the collapse of the memory market in the second half of 2022. As discussed below, it was as though someone “flipped a switch” to the off position for the memory market beginning in June!
The few memory companies that have made statements about the recent developments in the memory market have attributed the swift downturn to a massive inventory adjustment currently underway by their customers. Moreover, most expect this inventory adjustment period to extend into at least early 2023.
The following statements and data from a few of the memory suppliers yield some insight into how fast the market has changed over the past couple of months:
...
Market-watcher TrendForce last week revised its 3Q22 NAND Flash wafer contract prices downward—again. Prices were expected to decline 15-20% while chipmakers cut prices to stimulate demand. That estimate is now 30-35%.
“Looking forward to the price of NAND Flash wafers in 4Q22, as manufacturers have already implemented a strategy of maintaining market share at all costs, contract and spot market wafer pricing are facing collapse,” the firm said.
(Excerpt) Read more at eetasia.com ...
Hmmm... Coming SSD deals on Black Friday??? :-)
TSMC’s major market is not memory chips.
Its processors for Apple and Qualcomm
The US should be assiduously, with all due haste, working to replace and/or duplicate most of the Taiwan semiconductor industry onshore ASAP, with Manhattan project speed and determination. On the assumption that China will be invading Taiwan within....weeks or months. At the same time devising a means to “disable” TSM. The machines can’t be removed conveniently, but there has to be a way to “pull the PROMs.” Not doing so risks being caught pathetically flatfooted. I know there are fab facilities being built in a few Midwest states. But this has to get going with deadly seriousness, because that is exactly what it will be when that day comes.
AMD had another great quarter only to have the FED and the Biden administration squash the stock prices yet again.
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