The semiconductor crunch, which has haunted the electronics and car industry since the start of the pandemic, has now become a glut in some sectors, as demand for chips slows and companies start to hoard chips.
The two-year pandemic had caused a severe supply chain shortage of computer chips for manufacturers of computers, smartphones, and cars.
But in three weeks from the end of May to June, things began to quickly change, as higher inflation, pandemic-inspired lockdowns in China, rising fuel prices, and the conflict in Ukraine, lowered consumer spending, especially in the supply-sensitive electronics market.
The blows on the market from the war in Ukraine to the Chinese lockdowns have driven down chip prices and a pile-up of excess inventories, though experts caution that the glut is confined to certain sectors….