Thursday, July 14th 2022
Semiconductor Companies are Seeing Slower Sales in June
Based on a report from IC Insights, it appears that the demand for semiconductors and memory is starting to slow down. The slowdown is industry wide, with most major players having seen a reduction in sales in June compared to May. Although the report is focused on Taiwanes semiconductor companies, it also mentions Micron, who is expecting a slowdown in the third quarter of this year. Micron is reportedly expecting a drop in sales by as much as 17 percent, although this past quarter the company saw an increase in sales by 11 percent compared to the previous quarter, or 19 percent compared to last year, so it could simply be that the market is starting to normalise.
As for the Taiwanese semiconductor companies, TSMC saw a reduction in sales of five percent in June, although its competitor UMC saw an increase of two percent. Two other Taiwanese foundries, Powerchip and Vanguard, saw a decrease of four percent and an increase of three percent respectively, which shows that the foundry businesses are seeing change based on the type of chips they make. Apart from Winbond and Macronix, the other four companies in the report saw a decrease in sales by anything between two and 26 percent. Novatek, a manufacturer of semiconductors for the display industry saw the biggest dip in sales, with memory manufacturer Nanya seeing a drop of 16 percent. It should be pointed out that Novatek saw an increase in sales of 78 percent during the pandemic, which suggests their customers might not be seeing the same demand for their end products as they did over the past two years. For now, this could just be a slowdown over the summer months, when demand is usually quite low, but it could also be an indication of a return to a more normalised market.
Source:
IC Insights
As for the Taiwanese semiconductor companies, TSMC saw a reduction in sales of five percent in June, although its competitor UMC saw an increase of two percent. Two other Taiwanese foundries, Powerchip and Vanguard, saw a decrease of four percent and an increase of three percent respectively, which shows that the foundry businesses are seeing change based on the type of chips they make. Apart from Winbond and Macronix, the other four companies in the report saw a decrease in sales by anything between two and 26 percent. Novatek, a manufacturer of semiconductors for the display industry saw the biggest dip in sales, with memory manufacturer Nanya seeing a drop of 16 percent. It should be pointed out that Novatek saw an increase in sales of 78 percent during the pandemic, which suggests their customers might not be seeing the same demand for their end products as they did over the past two years. For now, this could just be a slowdown over the summer months, when demand is usually quite low, but it could also be an indication of a return to a more normalised market.
15 Comments on Semiconductor Companies are Seeing Slower Sales in June
Quarters must show profit, these are all public companies. CEO's get fired, investors lose money if they don't do something.
It's not like you have alternatives to buy somewhere else, it's basically dominated by a few companies and in some cases it's actually only 2 and in some cases just one company supplying the market. Prices are what they want them to be. It's not like you can go elsewhere for your silicon needs
And i now there were subsidies from governments but i doubt it covers even a fraction of the global investment.
Not going to happen and the strive for perpetual profit needs to stop, yesterday. It's wreaking havoc with the world.TSMC's share price has already dropped, in a pre-emptive move by some investors, so I guess they knew what was coming.
Crypto value has taken a big hit so new video card sales are down. Nvidia is already rumored to scale back on wafers they plan to buy for next gen GPUs. I expect AMD will follow suit.
But you also have to see the other side, the money we are talking about is not all from Bezos or big banks or speculations, there is a lot of money from pensions, of small investors, etc and no one wants to lose money. It's a badly designed system that kind of works because we don't have a better alternative, that's how i would put it.
Indeed, it's the little guys that are losing their money, as other people use their money to gamble with. What happens when those pension funds are gone? What are people going to live on when they retire?
We're way off topic here though.