Still Hot and Green but Distant Macro Clouds Loom

Andrea Lati

The Chip Insider®

• Order activity for semiconductor equipment continued to trend lower, slipping half a point in the last week of March
• The slight pullback in the last five weeks has been driven primarily by the memory segment
• Despite the slight pullback, the overall level of activity remains near record levels
  • This should translate into another strong year for equipment suppliers in 2022
• Supply chain constraints remain an ongoing issue for equipment suppliers
  • Growth for the equipment market will be weighted more towards the second half of the year
• The macro outlook is becoming cloudier
  • Increasing interest rates along with soaring energy prices will put negative pressure on economic growth in the second half of the year
• As semiconductors re-couple with the macroeconomy, the macro headwinds are likely to slow the momentum in the semiconductor market for 2023
• TechInsights' Chip Price Performance Index declined again
  • DRAM fell
  • NAND rose
  • MPUs rose
  • Shortages and supply chain constraints had an impact on the equipment market in 4Q21