Temperatures are cooling as the summer fog rolls in

Andrea Lati

• Order activity for semiconductor equipment continued to cool, falling by another three points in the fourth week of June
• Memory and SOC Consumer segments are driving much of the pullback with temperatures slipping into the 80-degree range
• These segments are encountering some headwinds due to slower end-demand and rising levels of inventories
• Memory manufacturers in particular have been building more inventories over the last few quarters in hopes of demand improvement and also to maintain pricing stability
• While memory manufacturers are still holding firm to their orders, we could see some pushouts due to the rapid changes in market conditions
• TechInsights’ Chip Price Performance Index sent more warning signals
  • DRAM tumbled
  • NAND plunged
  • MPUs flat
• Planned additions are on the rise