As wafer demand dries up, foundry revenues head for a cliff, we all celebrate

After surging 28 percent in 2022, foundry revenues are set to plunge over the next 12 months as wafer demand slows, inventory consumption slumps, and geopolitical conflict drives chip designers out of China, according to Trendforce. The market seers now expect foundry revenues to fall four percent year-over-year, well below …

[NewModelArmy]

Is it Good News for the UK ?

For the past 2 years the range of components from Farnell and RS has declined considerably. Some were stated to be available in 2023 when checking in 2022 or 2021. Some are now not stocked at all but were before.

I have to order from Mouser which means shipping via air to the UK, but it is free for a minimum order value.

[usbac]

Re: Is it Good News for the UK ?

It's funny, I needed some chips recently, and the only vendor that had them in stock was in the UK. So, I'm still waiting to get them. None of the US suppliers had them in stock.

Strange times...

[LogicGate]

Be happy that you can get what you need from mouser, and bot from some dodgy broker in Hongkong.

Hopefully Texas Instruments will start to deliver components with leadtimes of less than 3 years again.

My suspicion is that they have sold everything that they could produce directly to the big OEMs, leaving SMEs dry.

[BOFH in Training]

I have mentioned before

on previous articles about the 100s of billions of dollars being planned / spent in building new foundries during the covid shortage :

It takes years to bring up a new foundry and what makes all these foundries think that this shortage will still exist at the time when the new foundries come online?

Looks like what I expected is already coming true.

Who knows, maybe with the overcapacity, foundries will drop prices and we may end up getting some cheaper gear in the end.

[Total_Blackout]

Re: I have mentioned before

It's been a pretty constant theme in the semi conductor industry to capitalize on shortages about a year after the market's shifted due to lack of supply. Look at the Micron Xbox fiasco. Micron signed a huge deal with Microsoft to supply DDR chips, but only told their fabs to produce Rambus chips in hopes of capitalizing on some non existent market. In the interim, they failed to deliver on the Xbox contract because some genius in marketing didn't think we needed to actually make the chips they were trying to sell.

[GraXXoR]

The last thing to ever drop

Is the price to the consumer.

Prices for pretty much everything electronic are still sky high.

And everything non-electronic has been hit with shrinkflation.

[Zippy´s Sausage Factory]

Re: The last thing to ever drop

Last thing to drop, first thing to go up.

1% price increase to suppliers = 10% increase in price to consumer

1% price decrease to suppliers = 0.5% decrease in price to consumer

Cynical, me? Yup

[David Hicklin]

Re: The last thing to ever drop

as the saying goes: Up like a rocket, down like a feather

[Pascal Monett]

"Trendforce is tracking more than 20 new fabs"

So, more than 20 times a few billion gallons of pure water a day to be consumed.

I hope they have a good recycling process in place. I mean, I seem to hear that we're going towards a period of water issues . . .

[Total_Blackout]

Re: "Trendforce is tracking more than 20 new fabs"

I can't speak for every place, but generally the cost of recycling water for use is cheaper than using municipal or other means. They all run through purification systems regardless of the source.

[Luiz Abdala]

NVIDIA has the market cornered.

The latest and best GPUs are overpriced, and will continue to do so until NVIDIA reaches some semblance of ROI.

Good thing for NV with the prices drop, they will get soaring sky-high profit margins per unit.

If and only if AMD offers some bang-for-buck cards they will drop prices, otherwise no.

And to top it off, they have almost complete monopoly of the market, which makes it ever harder for AMD to make waves.