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Strategies & Market Trends : World Outlook
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To: Les H who wrote (34012)11/13/2022 3:19:06 PM
From: Les H  Read Replies (1) of 50909
 
Chip shortage in automotive and industrials despite lower demand for semiconductors
Up to 30% lower demand in consumer electronics results in revenue decline for semiconductor manufacturers in 2022 and 2023

November 11, 2022

There is currently an oversupply in the market for nearly half of the chips needed in consumer electronics, while in computers the oversupply amounts to almost 40% and in telecommunications 34%. On the other hand, there is a shortage of analog semiconductors and microcontroller units (MCU), and these account for almost two-thirds of the chips installed in the automotive sector and 57% of those used in the industrial sector.

Electronic manufacturing services for electronic components, such as smartphones and televisions, increased their inventory levels from the historical average of 16% (2012-2020) to 23% (2020-2021). This initially exacerbated the chip shortage for high-performance chips. Now, as global demand for these chips subsides, there is an increased risk of a bullwhip effect – where even small changes in end customer demand can lead to increasingly large fluctuations in order quantities along the multi-level supply chain. To avoid negative financial impacts or even scrapping stocks, these companies need to change the way they approach inventory management.

automotiveworld.com
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