Spring orders are flitting like butterflies but 2H22 is becoming blurry

Andrea Lati

The Chip Insider®

Semiconductor Equipment Weather Report

• Order activity for semiconductor equipment fell slightly, drifting at 112 degrees
• Despite the recent pullback, order activity remains at elevated levels and is pointing to another strong year for the equipment market in 2022
• The biggest issues for equipment manufacturers this year are supply-related as demand remains strong
• The supply constraints have yet to abate and continue to hamper the final installation of equipment
• While the revenue recognition issues will likely impact sales in 1H22, the deferred revenues will give 2H22 numbers a nice boost
• There were no notable changes to the forecasts in April as the data came in line with our expectations
• Semiconductor inventories continued to rise at the nominal level. The Covid-19 shutdowns in China coupled with ongoing supply chain disruptions are prompting companies to increase their inventory buffer
• TechInsights' Chip Price Performance Index fell at a faster clip
  • DRAM tumbled
  • NAND declined
  • MPUs fell
• IC inventories are rising