It's still very warm but there are bears around

Andrea Lati

• Order activity for semiconductor equipment continued to trend lower, slipping to 83 degrees
• Activity in SOC Mobile, SOC Compute, and DAO is holding up well as equipment suppliers catch up with customers’ CapEx plans
• The strength of spending at the Foundries/Adv. Logic and DAO will more than offset the weakness in Memory and keep the overall equipment market growing in 2022
• The equipment forecast for 2022 was lowered from 13% to 10% as supply constraints continued to limit growth
• The IC forecast for 2022 was also lowered from 13% to 7% due to a bigger-than-expected correction in the Memory market in 2H22
• Because the market correction is happening faster, and at a great clip, we now expect both equipment and ICs to decline by 5% and 4%, respectively in 2023
• TechInsights’ Chip Price Performance Index remains in a free-fall state, signaling more weakness ahead
  • DRAM tumbled
  • NAND crashed
  • MPUs declined
• Semiconductor Inventories are hitting critical levels