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Chip industry slowdown will last longer than expected, manufacturers warn

Semiconductor companies signal the industry slowdown will last even longer than expected due to weak demand for automotive components and slumping PC and smartphone sales. Experts worry about the industry's inability to increase production of its most sophisticated chips fast enough to take advantag

April 26, 2023 . 10:23 AM

1 min read

Semiconductor industry slowdown is lasting longer than expected due to weak demand for automotive components and slumping PC and smartphone sales.
TSMC, the world’s largest chip producer, has pushed back its expectations for market recovery and expects a decline in annual revenues for the first time since 2009.
PC and smartphone industries have been particularly hard hit, with a 29% drop in PC sales and a 12% decline YoY in smartphone sales.
Automotive industry shortages made it a relative bright spot for chipmakers, but it is showing signs of softening into the second half of 2023.
Some investors worry that the drop is likely to be steep and that the semiconductor industry is unable to increase production of its most sophisticated chips fast enough to take advantage of a surge in demand from artificial intelligence companies.