According to eeNews, Malcom Penn said, “As the chip market collapses and the global economy is sluggish, the industry’s 17th recession cycle fuse is already burning.” Big chip buyers such as Bosch are already preparing for an economic slowdown. .
He reiterated his January view that “inflation is a very, very big problem right now.” “The only way to fight inflation is to raise interest rates, but the problem is that doesn’t solve the problem of global supply chains. If this period Inflation persists and it is certain that it will trigger a global recession that was not factored in in January. This will come into play in the second half of the year when new capacity is added, which will be a double whammy .”
The semiconductor industry will grow from $440 billion in 2020 to $555 billion in 2021, an increase of 26%. Industry group SEMI said the economic downturn will lead to lower capital spending in 2023 and beyond, easing pressure on semiconductor equipment makers. The semiconductor equipment maker’s sales rose 44 percent last year to a record $102 billion.
“A natural slowdown in the equipment market could be a good thing, otherwise it could make the capacity situation worse,” Penn said. “Capex data is from SEMI, which I think is real equipment being shipped, but the 2022 capex data is being Exaggerated, probably not achieved.”