The Upturn Is Still Running Wild

Andrea Lati

The Chip Insider®

• Order activity for semiconductor equipment held steady at a hot 115 degrees
• With backlogs at all-time-highs and visibility extending into next year, Equipment manufacturers expect 2022 to be another double-digit growth year
• The sequential growth pattern is expected to be a bit lumpy in 2022 due to ongoing component shortages
  • The latter is expected to have the biggest impact in Q1 with equipment sales falling by more than 2% sequentially
• Equipment sales are expected to increase by double-digits sequentially in Q2 and Q3, as shortages and supply chain constraints abate, allowing shipments to catch up with demand
• IC sales in Q1 are tracking above expectations as demand remains red hot with no signs of slowing down
• We now expect semiconductor sales to increase over 15% in 2022 compared to our previous forecast of 11%
• TechInsights' Chip Price Performance Index jumped higher
  • DRAM increased
  • MPUs flat
• Hyperscale Fabless Capex slowed down in Q4