Chip stocks fall as Micron outlook signals easing demand
WORLD 02 July 2022 - 02:28
A handful of companies including chipmakers Micron and AMD are signalling an easing in the two-year long global shortage of semiconductor chips as rising inflation and cooling economies squeeze consumer and corporate spending.
Micron Technology Inc (MU.O), a maker of memory chips, forecast on Thursday much worse-than-expected revenue for the current quarter and said the market had "weakened considerably in a very short period of time."
Chip stocks fell on Friday including those of Taiwan's TSMC (2330.TW) and MediaTek (2454.TW), Dutch chip-gear maker ASML (ASML.AS), Franco-Italian firm STMicroelectronics , and Germany's Infineon (IFXGn.DE), Reuters reports.
Through the pandemic, chipmakers were overwhelmed trying to meet big orders from makers of smartphones and personal computers (PCs) that saw a surge in demand from people working from home. The resulting chip shortage led companies, including automakers, to slash production, delay shipments and pay steep premiums for key chips.
Recent COVID-19 lockdowns in China had global executives issuing grave warnings about supply chokepoints until recently.
On the flipside, China's curbs slammed consumer demand and boosted inflation in the world's second-largest economy, resulting in steep falls in sales of smartphones and PCs.
Advanced Micro Devices Inc (AMD.O) flagged last month a slowdown in PC sales this year after two years of strong demand. read more
Micron said China's recent lockdowns caused a 30% drop in its China revenue in the current quarter.
Industrywide shipments of smartphones to China - the world's biggest smartphone market - are expected to shrink by 18% this year, according to Gartner. It expects worldwide shipments to drop 7% due to supply chain snarls and the Russia-Ukraine war. read more
Ranjit Atwal, senior director analyst at Gartner, said falling smartphone and PC sales will result in the chip shortage easing this year.
Atwal, who was expecting chip demand and supply to equal out next year, predicts that cycle will be brought forward to this year. He said the declining smartphone market was not expected to be offset by any surge in chip demand from automakers.
Still, Micron executives said they were confident about demand for their chips in the long term, and industry analysts said there was still a lot of demand for chips used in EVs, 5G and high-speed computing.
No. 1 memory chipmaker Samsung Electronics (005930.KS), in an attempt to check an inventory glut, temporarily halted new procurement orders and asked some suppliers to delay or cut shipments of components for several weeks, Nikkei said last month.
"I think the extent of the shift has definitely been bigger than anyone was anticipating in the ecosystem," Micron's chief business officer, Sumit Sadana, said on Thursday.
As well, inflation is the highest in years in many countries including the United States, which has increased the risk of recession and is leading to job cuts and tightening budgets. read more
Tesla (TSLA.O), which uses hundreds of chips in its electric cars, has shuttered a California office and laid off about 200 workers. CEO Elon Musk previously said he had a "super bad" feeling about the economy and that the company needs to cut salaried staff by about 10%. read more
Earlier this week, Volkswagen (VOWG_p.DE) said chip shortages were easing and starting to offset supply chain bottlenecks and rising costs. read more
As recently as March, the German automaker warned that supply bottlenecks would hurt growth this year after it sold 2 million fewer cars than planned last year due to the chip crunch.
Caliber.Az
1
|
Armenia returns four villages to Azerbaijan, paving the way for peace in the South Caucasus Landmark accord
23 April 2024 - 09:14
|
2
|
Mark Rutte seeks Türkiye's backing for new job A new pair of hands
24 April 2024 - 16:55
|
3
|
Iran re-evaluating its ties with Azerbaijan, Armenia Baku - more important, honest partner than Yerevan
25 April 2024 - 12:00
|
4
|
Armenian PM's Moscow visit sparks speculation on bilateral relations Dilemma between East, West
23 April 2024 - 11:19
|
5
|
Bilateral relations, regional dynamics, & peacekeepers’ withdrawal Key takeaways from President Aliyev's Moscow visit
24 April 2024 - 14:07
|
Controversial Nobel Peace Prize nominee Vardanyan faces int’l scrutiny & opposition
A closer look at actions contrary to peace & humanitarian efforts25 April 2024 - 17:31
Iran builds up military power by showing off advanced Bavar-373 air defence system
PHOTO25 April 2024 - 17:15
Presidents of Azerbaijan, Kyrgyzstan visit Fuzuli, Aghdam cities
PHOTO25 April 2024 - 17:05
Lukashenko blames opposition and NATO: They want to take a district in Brest region by force
25 April 2024 - 17:00
Top Israeli, Egyptian officials secretly meet to discuss possible Rafah invasion
25 April 2024 - 16:41
Energy leading to peace
Proceeding from Azerbaijani President’s speech in ADA25 April 2024 - 16:22
“It would be a big mistake if Armenia used the support gained from the EU against Azerbaijan”
Amashov’s impromptu interview with Ambassador Sharp25 April 2024 - 16:16
Armenian Parliament speaker says legitimate border crucial for peace with Azerbaijan
25 April 2024 - 16:07
New mass grave discovered in Khojaly
Investigation underway / PHOTO25 April 2024 - 15:51
Port of Baku: the Eurasian trade hub working to expand and accelerate growth
Article by Euronews / VIDEO25 April 2024 - 15:39
Hybrid warfare being waged against Armenia, official says
25 April 2024 - 15:24
Azerbaijani police discover cache of weapons in Khankendi, linked to Armenian forces
25 April 2024 - 14:58
Zakharova slams Armenian media for distorting Russian leadership’s statements on Baku-Yerevan ties
25 April 2024 - 14:44
Baku, Budapest cement economic ties, sign protocol
25 April 2024 - 14:27
Yerevan ready to discuss gas purchase with Baku – Armenian Speaker
UPDATED25 April 2024 - 14:15
Azerbaijan set to take bold steps vis-à-vis climate change - minister
25 April 2024 - 14:09
Official: Hamas would lay down its weapons if two-state solution implemented
25 April 2024 - 13:54
Türkiye captures nearly 3,000 Islamic State suspects in 10 months
VIDEO25 April 2024 - 13:40
Blinken tours China to promote some ties
25 April 2024 - 13:26
Azerbaijani presidential aide showcases Fuzuli's rebirth in stirring social media video
25 April 2024 - 13:15
Media: China harbours ship tied to North Korea-Russia arms transfers
25 April 2024 - 13:11
Western Azerbaijan Community condemns US human rights report as discriminatory
25 April 2024 - 12:58
Israeli Air Force strikes dozens of targets in Gaza
VIDEO25 April 2024 - 12:43
Hungary prepares to participate in Karabakh's reconstruction
25 April 2024 - 12:29
Azerbaijan's Nakhchivan appoints new prime minister
25 April 2024 - 12:15
Political analyst: Good relations with Türkiye to be favourable for Armenia
25 April 2024 - 12:13
Iran re-evaluating its ties with Azerbaijan, Armenia
Baku - more important, honest partner than Yerevan25 April 2024 - 12:00
Balancing Turkmenistan – Afghanistan relations
Deviated approach25 April 2024 - 11:48
CENTCOM: US repells Houthi attacks on ships
25 April 2024 - 11:44
France proposes new EU sanctions to fight Russian disinformation
25 April 2024 - 11:31
Minister: Cooperation with Azerbaijan contributes to Hungary's energy security
25 April 2024 - 11:20
EU's proposed Russia sanctions to target oil tankers, ships carrying N. Korean equipment
25 April 2024 - 11:16
Azerbaijani Army conducts command-staff exercises to maintain combat readiness
PHOTO/VIDEO25 April 2024 - 11:10
Armenian politician slams recent burning of Azerbaijani, Turkish flags in Yerevan
Calling the action belligerent pity25 April 2024 - 11:04
Azerbaijan-Kyrgyzstan business priorities: Advancing trade, energy, transport initiatives
Review by Caliber.Az25 April 2024 - 10:51
Media: US sends long-range ATACMS missiles to Ukraine
25 April 2024 - 10:38
Georgia's pre-election turmoil
How the Law on Foreign Agents shapes voter sentiment?25 April 2024 - 10:27
India stands for closer cooperation in fight against terrorism at BRICS meeting
25 April 2024 - 10:25
Iranian president urges international courts to punish Israel for Gaza Strip operation
25 April 2024 - 10:09
Azerbaijan submits report on Convention Against Torture to UN
25 April 2024 - 09:55