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Chipmakers cautious about overbooking for consumer applications in 4Q21
Jay Liu, Taipei; Willis Ke, DIGITIMES
Monday 18 October 20210
Shipments of display driver ICs (DDI) for Chromebook and large-size TV applications are apparently slowing down on seasonality in the fourth quarter, but the supply of networking chips and automotive power ICs remain highly tight amid strong demand, according to industry sources.
IC design houses have allocated more foundry capacity for networking and automotive chips in the fourth quarter to fulfill robust orders from clients, the sources said.
For most chipmakers, overbooking from clients remain the largest shadow over their operations for the moment, and they are cautious about possible impacts of clients moving to adjust their orders based on actual fourth-quarter sales, particularly those of handsets, notebooks and other consumer electronics devices, the sources said.
The upcoming Christmas and Chinese New Year shopping seasons will provide a good timing for gauging consumer electronics market conditions, the sources said, adding that if sales fall short of market expectations, chipmakers and other supply chain players are expected to take corresponding measures.
Nevertheless, shortage of components and power cuts in China are expected to affect shipments of finished products for the year-end shopping season, the sources said. If clients fail to thicken inventory to a targeted level before the end of the season, they may cut orders afterwards in response to a slowdown in consumer demand, the sources added.
digitimes.com
 Credit: DIGITIMES |
