Podcast #56: Foundry Capacity Expansion Easing Chip Shortage, But Weakening Demand Can Cause Oversupply
The global semiconductor components shortage has been in the news since the start of the COVID-19 pandemic. Trade tensions between the US and China further upset the normal supply situation and the automotive sector was among the high-profile casualties. Chip manufacturers addressed the supply-demand issue by increasing capacity.
Then, there is the Russia-Ukraine conflict which has added further uncertainties with respect to some raw materials that are required for semiconductor manufacturing. The geopolitical issues are also creating macroeconomic headwinds, leading to a drop in overall demand. Will an increase in capacity lead to an oversupply situation?
In the latest episode of ‘The Counterpoint Podcast’, host Peter Richardson is joined by Research Director Dale Gai, and Senior Analyst Ashwath Rao to talk about the global semiconductor manufacturing and foundry market update. In this discussion, we talk about the foundry inventory correction cycle, the role of wafer fab equipment makers in the supply chain, the future of process node and packaging technologies, and much more.
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You can read the podcast transcript here.
Podcast Chapter Markers
02:31 – Dale on foundry inventory correction cycle.
05:04 – Dale weighs in on whether an increase in global semiconductor manufacturing capacity will lead to an oversupply situation.
07:43 – Ashwath talks about the role of the wafer fab equipment manufacturers in the overall supply chain.
10:19 – How geopolitics is affecting lead times for wafer fab equipment.
13:06 – Dale talks about foundry capacity expansion relative to potential equipment delays.
16:07 – Ashwath on how we see process nodes developing over the next few years
19:27 – Ashwath further talks about how semiconductor manufacturing equipment vendors prepared for different packaging technologies.
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