Counterpoint: Global Chip Shortage Eases in H2 2022

The global semiconductor chip shortage is likely to continue to ease in the second half of 2022, as the gap between supply and demand for most components narrows, according to Counterpoint Research's latest smartphone component tracking report.

Over the past two years, semiconductor shortages have plagued many industries, and suppliers along the global supply chain have spent a lot of energy dealing with supply uncertainty. Reports indicate that these supply and demand gaps have been narrowing since the end of 2021, which means the supply crunch across the ecosystem is coming to an end.

Among them, the inventory of 5G-related chips including mainstream application processors, power amplifiers and RF transceivers has increased significantly.

Of course, there will be some exceptions, such as the previous generation of 4G processors and power management ICs will continue to maintain a tight supply situation.

In terms of personal PCs and notebooks, the supply gap for the most important components of personal PCs, such as power management ICs, Wi-Fi and I/O interface ICs, has narrowed.

"We see OEMs and ODMs continuing to build up component inventories in response to the uncertainty caused by the COVID-19 pandemic. Any downside risks to global shipments will provide further cushion for OEMs." Focused on semiconductors and components Research analyst William Li said he pointed to lower shipments in the first half of 2022, mainly due to higher channel inventory and slower consumer PC momentum. "Combined with the expansion of wafer production and continued diversification of suppliers, we have witnessed a significant improvement in the component supply situation, at least in the first quarter."

Li believes that shipments in the first half of 2022 will be revised down, mainly due to increased channel inventory and slowing PC consumption momentum, "As wafer production expands and suppliers continue to diversify, we have witnessed component supply. The significant improvement in the semiconductor industry, at least in the first quarter. Currently, the biggest risk factor for the development of the semiconductor industry is the blockade that occurs across China, especially in and around Shanghai. But if the government can control the epidemic and help the key ecological Systems companies weathered the storm quickly, and we believe the wider semiconductor shortage will ease by the end of the third quarter or early in the fourth quarter."

Dale Gai, research director of semiconductors and components at Counterpoint Research, said, “In the last year, tight supply coincided with a rebound in demand from consumers and businesses, which created a lot of difficulties for the entire supply chain. But over the past few months, the semiconductor industry has This has been mitigated by an increase in inventories corresponding to weaker market demand. The issue is not a shortage of inventory, but the impact of the national lockdown policy on the entire ecosystem. Currently we are seeing a series of dominoes from the lockdown policy in China Domino effect."