Visibility is low as the storm intensifies

Shereen Vaux

• Order activity for semiconductor equipment held at a chilly 50 degrees
• The decline has moderated over the last few weeks with most segments remaining unchanged
• The December data from the Taiwanese manufacturers was negative across the board sequentially, with the exception of MediaTek which increased 7%
  • However, MediaTek was down 16% YoY
• TSMC was down on a monthly basis, though they have not had a negative YoY month since May 2019
• The decline for Subcons accelerated in December, declining 12% MoM and 10% YoY
• Looking at Memory, Nanya declined 13% from the previous month and down a whopping 65% YoY
• TechInsights’ CPPI continued to lose ground, slipping 0.6 points in the second week of January
  • DRAM fell
  • NAND flat
  • MPUs flat
• Production cuts are happening in order to digest the inventory build-up