Welcome Here  Shenzhen Mingjiada Electronics Co., Ltd.

The chip shortage crisis that pervaded the world a few days ago, may suddenly evolve into an oversupply?

Under the dual impact of economic setbacks in various countries and the expansion of semiconductor manufacturers' production capacity, the original shortage of semiconductor chips gradually reversed the supply and demand situation, and even forced manufacturers to reduce production in response.

Russia-Ukraine war to shake the price of raw materials, China's epidemic sealing control affect the supply chain, coupled with the continued deterioration of the economic environment, so that consumer spending on cell phones, computers and other 3C products declined sharply, which may also affect the semiconductor industry supply and demand changes.

According to market research firm IDC statistics, the second quarter of 2022 global personal computer shipments fell 15.3% to 71.3 million units, and estimates that this year's computer shipments will be reduced by 8%. In addition, the wearable device market also declined by about 3% in the first quarter of this year.

Analysts at U.S. investment bank Baird predicted that manufacturers supplying chips for low-end smartphones are likely to suffer the most severe blow in this wave of economic downturn.

U.S. memory maker Micron Technology announced at the end of June this year, is expected to start in September this year, the fiscal year 2023 will be scaled back manufacturing investment, that is, will reduce production capacity, but did not disclose the exact extent of the reduction. Micron's financial test, the third quarter of this year's revenue is expected to be $ 7.2 billion, about 20% lower than what is expected.

According to the Economist, semiconductor manufacturer Samsung also in three consecutive quarters of record revenue and profit performance, after the second quarter of this year, profit growth slowed down, intends to reduce the price of memory in the second half of this year.

Trend Micro also predicts that memory prices will decline by about 10% in the next three months. Plus, the cryptocurrency winter has hit, making the GPU, which has been priced high for the past year or two, slashed in price and has been cut compared to the beginning of this year.