Order Activity Stayed Hot Amid Supply Chain Woes

Order Activity Stayed Hot Amid Supply Chain Woes

February 1, 2022

Order activity stayed hot amid supply chain woes

  • Order activity for semiconductor equipment held steady at a sizzling 115 degrees
  • Even though the visibility and demand for equipment suppliers is the best it's ever been, persisting shortages and supply chain constraints are having a considerable impact on revenues in both 4Q21 and 1Q22
  • The equipment spending profile will likely become more second-half loaded
  • The fear of shortages and supply bottlenecks is pushing customers to continue building inventory
    • For many customers, the risks of holding too much inventory have much fewer ramifications than not having enough
  • VLSI's Chip Price Performance Index rose
    • DRAM rose
    • NAND flat
    • MPUs flat
  • Inventories remain at elevated levels

Order Activity Stayed Hot Amid Supply Chain Woes