According to Counterpoint Research’s latest smartphone parts tracking report, the global semiconductor chip shortage may be significantly alleviated in the second half of 2022 as the gap between supply and demand for most parts narrows.
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The shortage of parts and components has plagued many industries for the past two years, and suppliers across the supply chain have worked hard to resolve the associated uncertainties, the report said. This supply-demand gap has been narrowing since the end of 2021, signaling an end to the supply crunch across the ecosystem.
Inventories of 5G-related chips including mainstream application processors, power amplifiers, and RF transceivers have increased significantly. But there are some exceptions, such as older generation 4G processors and power management chips.
In PCs and notebooks, the supply gap for the most important PC components, such as power management chips, Wi-Fi, and I/O interface chips, has narrowed. “We see major OEMs and ODMs continue to build up their component inventories in response to the uncertain situation brought on by the COVID-19 pandemic earlier this year,” commented William Li, semiconductor and components research analyst.
However, Li sees a downward revision in shipments in the first half of 2022, mainly due to an increase in channel dealer inventory and a slowdown in PC consumption. “Considering the expanded production of wafers and the diversification of suppliers, we have witnessed a significant improvement in the availability of components, at least in the first quarter.
Currently, the biggest risk factors for the development of the semiconductor industry are happening across China. Lockdown situation, especially in Shanghai and its surrounding areas.
But if the government can control the epidemic and help industry players in the major semiconductor ecosystem quickly reverse the unfavorable situation, it is believed that a larger semiconductor shortage will be at the end of the third quarter or the fourth quarter. relieved at first.”
Dale Gai, research director of semiconductors and components at Counterpoint Research, said, “In the last year, tight supply coincided with a rebound in demand from consumers and businesses, which created a lot of difficulties for the entire supply chain.
But over the past few months, the semiconductor industry has been mitigated by an increase in inventories corresponding to weaker market demand. The issue is not a shortage of inventory, but the impact of the national lockdown policy on the entire ecosystem. Currently, we are seeing a series of dominoes from the lockdown policy in China Domino effect.”
