Automotive and industrial IC supply remains tight

Raymond S. Hughes

The provide of automotive and industrial chips continues to be restricted, even though shopper chip inventories proceed piling up all over the supply chain, according to marketplace resources.

Consumer IC inventories held by distributors and downstream machine vendors have attained alarming stages, reported the resources, including that just about every segment of the customer IC field is in a point out of overstock.

In the most effective-situation situation, it might choose 50 % a yr for customer IC suppliers to complete their stock correction, the resources indicated. Thus, the outlook for shopper electronics need in the next half of 2022 is frequently pessimistic.

TSMC has warned that clients could alter stock by means of the to start with 50 percent of 2023. With smartphone, Laptop and client close industry momentum slowing down, relevant business offer chains will be associated in inventory correction during the second 50 percent of 2022, claimed TSMC CEO CC Wei through the company’s recent earnings conference simply call.

On the opposite, the outlook for automotive, industrial and other non-consumer IC demand continues to be promising, in accordance to industry resources. IDMs, these as NXP Semiconductors, proceed to see their automotive and industrial chip provide fall shorter of need.

“Notwithstanding the distinct macro-economic cross currents, NXP proceeds to carry out very well,” stated NXP president and CEO Kurt Sievers when disclosing its economic benefits for the 2nd quarter finished July 3, 2022. “Consumer desire inside the Automobile and Industrial & IoT conclusion-markets continues to exceed our incrementally improving upon offer, even as we threat-change our long time period orders.”

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