Industry News

Polarization of Chip Market

Update time : 2022-08-25 17:06:21

Recently, according to news reports: a large number of chip factories and wafer foundries have overstocked inventories, and the chip market has seen price cuts. The chips that fell were mainly used in consumer electronics control chips such as PCs and mobile phones. Among the many major types of chips used in these areas, such as panel chips, communication chips, and analog chips, the price drop is not small.

Chip price reductions are concentrated in the consumer electronics field, especially in many categories of chips such as panel chips, communication chips, and analog chips. In the past two months, the price of eight categories of chips, including driver ICs, passive components, GPUs, and analog chips, fell by more than 20%. The price of some chips has been reduced by more than 80%.
The smartphone SoC is the most serious area of price reduction. According to IDC data, in the first quarter of 2022, smartphone shipments in Europe fell by more than 15%, and Africa fell by nearly 30%. In the first half of 2022, the total shipments of mobile phones in the Chinese market totaled 136 million units, a decrease of 3,800 from the same period in 2021. 10,000 units, hitting a new low in mobile phone shipments in the first half of the year since 2013.
Similarly, the mobile phone market is bleak in shipments, and the personal computer (PC) market is also bleak. According to data from Mercury Research, in the second quarter of 2022, desktop computer processor shipments fell to the lowest level in nearly 30 years; x86 architecture CPU shipments declined sharply, the largest year-on-year decline since 1984.
On the other hand, the chips needed by automakers are still tight, facing shortages and premiums. In July 2022, automakers shipped a total of 2.42 million vehicles to dealers across the country, a year-on-year increase of nearly 30%. Passenger cars and small utility vehicles rose about 40% year-on-year to 2.17 million; sales of electric vehicles more than doubled to 593,000.
In the next few quarters, reducing inventory and transforming automotive chips will become the main theme of chip manufacturers.

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