ELECTRONICS NEWS HIGHLIGHTS 08/01/2022
Electronics News Highlights 08/01/2022
1. CHIPS FOR CONSUMER ELECTRONICS ARE IN OVERSUPPLY
The chip inventory for consumer electronics held by chip distributors and equipment suppliers has reached a high level, and almost every link in the consumer IC industry is in a state of excess inventory. It will take at least half a year for consumer IC suppliers to complete inventory corrections. Therefore, the demand outlook for consumer electronics in the second half of 2022 is not optimistic.
2. AMERICAN CHIP COMPANIES SPEND MOST ON R&D
R&D expenditures as a percent of semiconductor sales for companies headquartered in the Americas region averaged 16.9% in 2021. The R&D-to-sales ratio for semiconductor suppliers in the Asia-Pacific region was 9.8% in 2021, while European companies spent about 14.4% of their combined chip revenues on research and development last year.
3. ARE MICRON AND THE TAIWANESE SEMI-SUPPLIERS THE CANARIES IN THE COAL MINE?
These 10 companies posted a 5% drop in June semiconductor sales as compared to May, with three of the four most prominent companies, including TSMC, registering a decline. Particularly worrisome is the steep 26% decline in the June/May sales by previous “high-flyer” Novatek (the company posted a 2021/2020 sales increase of 78%). Note also the 16% drop in June/May sales by DRAM supplier Nanya, possibly confirming the dire memory market outlook Micron alluded to in its June 30 guidance.