Now, global chip inventories are increasing. In the past two years, demand has been increasing, which has stimulated many chip companies to manufacture chips in large quantities. But now the global supply shortage situation is changing. Stock markets in many countries began to fa

Now, the global inventory of chips is increasing.

In the past two years, demand has been increasing, which has stimulated many chip companies to manufacture chips in large quantities. But now the global supply shortage situation is changing. The stock markets in many countries began to fall and the economy began to decline, resulting in a weakening of consumer demand for electronic products. This has led to an ever-increasing inventory of chips. Products that were in high demand in stores in the first two years are facing oversupply. The technological development of the

chip is good news for consumers. Consumers can purchase electronic products with better performance than the previous year at a lower price. But for chip manufacturers, this will trigger a new round of layoffs and cost-cutting expenditures.

Memory manufacturer Micron Technology 's inventory is much higher than the company's expectations. In order to maintain balance of payments, Micron will lay off 10% of its employees. As order volume decreases, so does the lead time for chip orders. UBS analyst pointed out that chip inventory levels are currently at their highest point in the past decade.

HP and Dell said that the inventory of personal computers will continue to increase in the next two quarters. These two computer companies are launching new promotions to reduce inventory.

Due to a lack of confidence in the future market, Intel carried out large-scale layoffs in October. and AMD PC CPU inventories have also exceeded expectations. AMD is reducing chip shipments to reduce inventory pressure. Believing that the market will continue to fluctuate, AMD has not replenished its chip inventory on the usual scale.

Nvidia said that excess inventory will affect the sales of the new generation GPU.

Many chip company executives expect that the situation will improve next year and inventories will be reduced to normal levels. But there is still no unified timetable for when recovery will occur.

Not only are PC shipments affected, but smartphone sales are also in the doldrums. This caused and Qualcomm to lower their sales plans. Mobile phone manufacturers such as Samsung and Apple have also reduced the supply of mobile phone chips .

Although there has been an oversupply in the market recently, chip executives are still preparing for the long-term growth of chips, and many chip companies are building new factories. Some chip industry executives predict that chip sales will double by 2030, and global chip sales may exceed US$1 trillion. To this end, Micron plans to invest US$100 billion to build a chip factory in upstate New York, USA.

Although the inventory of chips has increased, it is not good news for chip companies. But some chip companies see this as an opportunity to make money. Although the manufacturers of CPU need to deliver new versions of chips to PC manufacturers in a timely manner, the chips produced by other chip manufacturers for PC manufacturers will not undergo any changes in the next few years.

Although Lattice Semiconductor, a company that produces conventional chips, has increased its inventory by 29% in October, company executives are not worried because their products can be used normally for 15 or even 20 years. Because Lattice Semiconductor's products have a low probability of being obsolete, holding more inventory will make the company more profitable.

Although chip companies have different attitudes towards inventory, chip companies with longer chip update cycles are more likely to want to hold larger inventories. Because they hope to profit from it when there is another shortage of chips.