Global chip shortage is reversing fast

REMEMBER the global semiconductor shortage a few months ago? It’s over.

Now, quickly shrinking demand for consumer electronics is causing cancelled orders and unsold stockpiles at makers of integrated circuits, including Taiwan Semiconductor Manufacturing Co (TSMC), Advanced Micro Devices (AMD) and Nvidia. It’s a stark contrast with the disruptions that chip shortages caused for makers of autos, smartphones, computers and other goods relying on the advanced electronic devices.

“This round of business sentiment is reversing so fast that chip designers were struggling to find production capacity only last year, but now they find chips won’t sell,” said Xie Ruifeng, analyst at semiconductor industry market research institute ICwise.