In stark contrast to the mad scramble for supply during the pandemic, companies along the semiconductor supply chain are now reversing their inventory building. Asian semiconductor players, critical nodes of this global industry, have started seeing declines in the second quarter of this year and Credit Suisse expects the trend to continue for the next two to three quarters.
The semiconductor industry, which has enjoyed a bull run throughout most of 2020 to 2022, is showing more signs of slowdown as demand eases off and supply catches up.
Following two years of strong demand, a global slowdown, rising inventories, the Russia-Ukraine war, as well as a shift from goods to services and essentials have emerged as threats to end that run, says Credit Suisse at its 23rd Asian Technology Conference on Sept 6.
