Taiwan media: automotive and industrial chip supply is still tight, consumer IC needs half a year to adjust inventory

On July 27, according to DIGITIMES, industry sources revealed that the supply of automotive and industrial chips is still tight, while the inventory of consumer chips continues to accumulate throughout the supply chain.

Sources said that consumer IC inventory held by distributors and downstream equipment suppliers has reached alarming levels, and almost every segment of the consumer IC industry is in a state of excess inventory.

In the best-case scenario, consumer IC suppliers could take half a year to complete inventory corrections, the sources pointed out. As a result, the outlook for consumer electronics demand in the second half of 2022 is generally pessimistic.

A few days ago, TSMC warned that customers may adjust inventory before the first half of 2023.

Wei Zhejia, CEO of TSMC, said on the company's recent earnings conference call that as the smartphone, PC and consumer markets slow down, the supply chain of related industries will participate in inventory adjustments in the second half of 2022.

According to industry sources, the outlook for automotive, industrial and other non-consumer IC demand remains positive. IDMs such as NXP Semiconductors continue to see their automotive and industrial chip supply in short supply.