It’s hot and humid but distant clouds threaten the upturn

It’s hot and humid but distant clouds threaten the upturn

Andrea Lati

• Order activity for semiconductor equipment held steady at a hot 110 degrees in the last week of May
• Equipment demand remains red hot and is not showing any signs of abating anytime soon
• The challenge for equipment manufacturers remains on the supply side where shortages and constraints on various parts of the supply chain continue to hamper tool shipments
• Chipmakers and electronics OEMs are also facing similar supply chain issues
• At the macro level, soaring energy prices are likely to keep inflation elevated, denting consumer spending and economic growth while also forcing central banks to tighten their monetary policy further
• The outlook for 2023 is becoming more uncertain, especially for the electronics market and ICs
• TechInsights’ Chip Price Performance Index continued to trend lower, but at a slower rate
  • DRAM fell
  • NAND flat
  • MPUs declined
  • Utilization rates remain elevated