Now you've all quit buying RAM and personal gear, chip wafer demand stumbles
Worldwide shipments of silicon wafers slid nine percent during the first quarter of 2021 and 11.3 percent from the prior year, the SEMI's Silicon Manufacturing Group's reported this week.in an overall softening semiconductor market in key, and very profitable, sectors.
"Memory and consumer electronics have seen the largest drops in demand while the market for automotive and industrial applications remains more stable," she said. Silicon wafer shipments have enjoyed sequential growth over the past two years, particularly during the height of the COVID-related semiconductor shortage, according to SEMI. However the trend came to an abrupt halt during the fourth quarter of 2022 as global demand for chips plummeted across multiple industries, particularly in the consumer sector.
This trend continued into Q1, where several chipmakers, including Intel, AMD, Samsung, and SK hynix blamed weak demand on declining revenues and profit shortfalls. Based on SEMI's findings these trends are starting to trickle down to not only wafer shipments butAccording to the group's latest figures, shipments of both polished and unpolished silicon wafers have contracted by 475 million square inches over the past two quarters.
The decline shouldn't come as a surprise to anyone who's been following the foundry operators' financials. Memory vendors in particular have taken a beating over the past year as inventory levels of DRAM and NAND flash have reached all-time highs, dragging down the selling price and forcing corrective measures.
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