Chipmakers Forecast Sharp Drop In Demand

Share post:

Micron Technology’s forecast on Thursday, which predicts much worse-than-expected sales for the current quarter, sent chip stocks around the world plunging on Friday. Besides Micron, several other chip manufacturers have pointed to a possible decline in demand for chip products.

The expected decline in demand for chip products is driven by several factors, in particular, fervent inflation, which is forcing companies to cut spending.

Shares of Taiwan’s TSMC and MediaTek, Dutch chip gear maker ASML, Franco-Italian company STMicroelectronics and Germany’s Infineon all fell on Friday.

In addition to soaring global inflation across the world causing consumers to tighten spending, China COVID-19 lockdown is also having an impact on demand, leading to a decline in sales of smartphones and personal computers.

Despite the bleak outlook, Micron executives said they were confident about what demand for their chips would be in the long run. Industry analysts also claimed there was still a lot of demand for chips used in electric vehicles, 5G and high-speed computing.

The COVID-19 pandemic forced many people to work from home, leading to an increase in demand for technology products. However, semiconductors, which are a core component of every technology product, were limited in supply and could not keep up with demand.

The sources for this piece include an article in Reuters.

Featured Tech Jobs


Related articles

Apple reduces forecasts for Vision Pro as demand cools in key US market

In an unexpected shift, Apple has drastically reduced its shipment forecasts for the upcoming Vision Pro, indicating a...

AI surpasses human benchmarks in most areas: Stanford report

Stanford University’s Institute for Human-Centered Artificial Intelligence (HAI) has published the seventh annual issue of its AI Index...

Microsoft and OpenAI partner to build a $100 Billion AI supercomputer “Stargate”

In a bold stride towards computational supremacy, Microsoft, in partnership with OpenAI, is reported to be laying the...

US Bill Aims to Unveil AI Training Data Sources Amid Copyright Concerns

In a significant move toward transparency, a bill was introduced in the US Congress on Tuesday by California...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways