The semi-conductor industry is at risk of facing the worst recession in 20 years

The semi-conductor industry is at risk of facing the worst recession in 20 years

There is less doubt that in the coming months many sectors of the semiconductor industry will be faced with storage and surplus, and at such a difficult moment for the industry, the United States authorities have finally adopted a series of measures to subsidize the national semiconductor industry, and the competition has now moved to the international level, but this kind of competition is not going to end well for the industry, and experts are convinced.

As a reminder, in the second quarter, Intel, Mikron and NVIDIA reported a decline in revenues, while Mercury Research experts found that the sales of desktop processors had fallen to the lowest levels in the last 30 years, and the semi-conductor industry was being adjusted this time in the world economy, and Northland Security and Citigroup expected that the market for semi-conductor components could face a severe decline in the last 20 years.

At the same time, market participants continue to plan for the construction of new production capacity, according to the industry association SEMI, 24 enterprise development projects are under development this year, which is 20% higher than the industry's typical level, and the industry's capital costs may increase by 15% to $117.5 billion by the end of the year, and will increase to $120.8 billion next year.

"Dubling" production in different macro-regions will result in a global industry facing overcapacity and a decline in the cost-effectiveness of the projects concerned, possibly reaching $1 trillion by the end of the decade, but no one will be able to guarantee the rise in the coming years. The activities of chip producers continue to suffer from poor demand forecasting.