Temperatures are cooling off, but the path is still clear

Andrea Lati
Andrea Lati
  • Order activity for semiconductor equipment continued to cool off, slipping to 88 degrees
  • Despite the recent slowdown, order activity remains in a healthy expansion phase
  • Bookings and backlogs are still hovering at record levels, especially for WFE suppliers
  • Although the memory market has been eroding in 2H22, demand for semiconductor equipment remains strong
  • We expect the equipment market to remain supply-constrained throughout 2022, which is why last week we lowered the equipment forecast by five points to 13%
  • Chipmakers will keep a closer eye on capacity expansions in 2023 in order to prevent overcapacity
    • Memory manufacturers are already doing this and others could follow suit in 2023
  • TechInsights’ Chip Price Performance Index continued to head south
    • DRAM tumbled
    • NAND plunged
    • MPUs declined
  • Planned capacity additions are rising

Production and Capacity Plan

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