It's hot but distant clouds threaten the upturn

Andrea Lati
Andrea Lati
  • Order activity for semiconductor equipment continued to cool off, falling by half a point to a still-hot 111 degrees
  • Q1 results for equipment companies have been in line with our expectations for a sequential decline in revenues in Q1
  • Despite the ongoing supply chain challenges and macro headwinds the outlook for the equipment market remains bright
    • Most of the growth will come in the second half of the year as the ongoing constrains subside
  • Chipmakers have posted strong Q1 results
    • Their sales are on track to increase sequentially in Q1, in line with our expectations
  • Sustaining this strong momentum for the remainder of the year will be challenging for semiconductors especially if the economic deceleration becomes pervasive
  • Die bank inventories increased much faster than expected in Q1
  • TechInsights’ Chip Price Performance Index flashed a warning sign
    • DRAM crashed
    • NAND declined
    • MPUs declined
  • Hyperscale Fabless Capex is tracking above seasonality in Q1

Hyperscale Fabless CapEx

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