It's Hot but Supply Constraints Are Holding Up Growth

Andrea Lati

The Chip Insider®

Semiconductor Equipment Weather Report

• Order activity for semiconductor equipment slipped to 113 degrees
• All segments held their ground at record levels, except for Memory where order activity fell for the third straight week
• Memory market is still growing but it's been under a bit of pressure this year and has not performed as strongly as the rest of the market
• The supply chain constraints remain an ongoing issue for equipment suppliers and will likely impact revenue timing in the short term
  • However, they appear to be transitory in nature and will not have a meaningful impact for the entire year
• There were no notable changes to the forecasts in March as the data came in line with our expectations
• Semiconductor inventories trended higher as companies continued to increase their inventory buffer due to rising geopolitical tensions
• More macroeconomics risks loom
• TechInsights' Chip Price Performance Index slipped again
  • DRAM fell
  • NAND flat
  • MPUs flat
• Inventories are rising