Semiconductor cold wave continues! Equipment manufacturers have also been cut orders

The reduction of investment by semiconductor manufacturers due to the economic recession is affecting the equipment industry, and even cancels planned purchases, which has aroused the industry's concerns about the consequences of the semiconductor recession.

According to Korean media ETnews, several semiconductor equipment industry leaders revealed that many orders were received in the first half of last year, but after multiple delays, customers said they would reduce investment by more than 50% and cancel orders in 2023.

It is reported that in order to achieve on-time delivery, semiconductor equipment manufacturers need to purchase necessary parts or materials in advance, so the cost of development and preparation is difficult to recover. In the past, even if the delivery date was delayed, semiconductor equipment manufacturers would make up for losses such as development costs to a certain extent by increasing the price at the next equipment purchase. However, it is still unclear when customers will be able to place orders again in the near future, which increases the possibility of losses for semiconductor equipment makers.

According to industry insiders, SK Hynix canceled most of its semiconductor equipment purchases at the end of last year. After requesting delayed delivery in the second quarter of last year when the semiconductor market was sluggish, it shifted to completely canceling orders in the fourth quarter.

The report pointed out that if Samsung Electronics, South Korea's largest memory maker, begins to cut production and invest, the materials, parts and equipment industry will inevitably decline further.