The global chip shortage has come to an end, as confirmed by the latest reports. The statement might seem overly optimistic, but the declining operation rates at South Korean chip foundries such as Samsung, DB Hitek, Key Foundry, Magnachip, and SK Hynix System IC supports the declaration. The chip industry is reportedly moving towards a more stable supply chain. Here are the details…
South Korean chip foundries to suffer low operation rate up to Q2
The global chip shortage, which began during the pandemic, has affected the entire world. The decrease in production capacity and simultaneous increase in demand resulted in a crisis that lasted for an extended period. Despite manufacturers operating at near full capacity to meet demand, both prices and product availability remained limited.
But that era has now come to an end. Recent reports indicate that many manufacturers in South Korea operate at 60-70%. Only Samsung is an exception, operating at 80% capacity. Unfortunately, the impact of global inflation and declining demand for IT products has resulted in a decrease in both chip prices and demand. Consumer electronics companies are also grappling with high inventory levels.
Unfortunately, this situation seems to affect the consumers negatively. People who paid high wages only a few months ago due to product and stock shortages will now buy products at low prices due to rising costs and inflation.
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