It’s red hot out there despite growing concerns about the economic outlook

Andrea Lati

• Order activity for semiconductor equipment declined a mere 0.2 points in the third week of May
• Despite the pullback in the last couple of months, overall activity remains at elevated levels
• Equipment backlog remains high as bookings stretch into 2023
• Although equipment demand is as strong as it has ever been, supplying the tools to chipmakers remains a challenge
• Supply constraints are expected to abate in 2H22 as more capacity comes online and China reopens its economy
  • However, the pace of these improvements will determine how much the industry can ship in 2H22 and if equipment can hit our forecast of +20% for the year
• TechInsights’ Chip Price Performance Index continued to trend lower, but at a slower rate
  • DRAM fell
  • NAND flat
  • MPUs declined
• Planned capacity additions are on the rise