15 Feb 2023 -

Semiconductor bounce-back will lead to further shortages

While the current slowdown in PC shipments and phone sales is causing some OCMs including Micron and SK Hynix to aggressively cut production, some remain concerned that a bounce-back will push semiconductors into further shortages.

Pat Gelsinger is one of several leaders who’s expressed concern over the shortage’s downturn. Worried that should semiconductor demand spring back, the global supply chain would be unable to handle the demand. ASML Holding CEO, Peter Wennink, spoke to CNBC about forecasted growth, telling CNBC, “Most of our customers tell us that they expect a recovery in the second half of this year.” Considering that the lead time for ASML’s equipment is relatively long, it makes sense customers, such as Intel and TSMC, aren’t canceling current orders.

Souring experts claim that developments on the rise in popularity will keep semiconductor growth alive when consumer demand bounces back in 2023. The largest drives of semiconductor growth are the metaverse, digital health, and e-mobility. Smartphones and other consumer devices will spring back into high demand later this year when Apple and other organizations release their new products ahead of holiday shopping.

This raises an industry concern: if semiconductors bounce back more quickly than predicted last year, sourcing will become difficult after production cuts through early 2023. The clear message is to purchase now to ensure your supply-chain is prepared with inventory.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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