The semiconductor crunch, which has haunted the electronics and car industry since the start of the pandemic, has now become a glut, as demand for chips slows and companies start to horde chips.
The two-year pandemic had caused a severe supply chain shortage of computer chips for manufacturers of computers, smartphones, and cars.
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.
“See if you can spot the “chip shortage” — and how quickly it’s turning back into a glut,” tweeted Carl Quintanilla, a CNBC analyst….