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Chip delivery times fall, but so does demand as global economic conditions worsen
The Register ^

Posted on 09/09/2022 7:19:18 AM PDT by FarCenter

...

Semiconductor lead times averaged 26.8 weeks during August, Bloomberg said, quoting a report from trading and technology financial outfit Susquehanna International.

This is actually just a single day shorter than lead times were in the preceding month, which will not come as much relief to beleaguered manufacturers struggling to deliver their own products that contain chips.

What this actually points to is slowing demand for some technology products, such as smartphones and PCs, Susquehanna analyst Chris Rolland admitted, as consumers rein in spending in the face of growing inflation and rampant energy prices.

...

Jefferies warned that an inventory correction is now starting, and will likely last through the entire first half of 2023: "We believe the semiconductor industry is heading into the deepest downcycle and inventory correction in over a decade."

The company noted that digital logic and memory chip suppliers such as Intel, Western Digital, Nvidia, and Micron have already begun to lower their earnings guidance sharply, and predicted that the semiconductor market will bottom out at around a 20 percent year-on-year decline by mid-2023.

Not all types of semiconductor are equally affected, however. Susquehanna's Rolland said that power management, microcontroller, and optoelectronic devices still had extended lead times, with makers such as Microchip Technology and Infineon struggling to keep up with demand.

One of the reasons for this has been the lack of investment in the mature process technologies typically used to manufacture such components, IDC said earlier this year, for which there is no quick fix as it takes years to bring online new capacity.

Jefferies noted that the analog/power/MCU segment had so far been "resilient," but warned it was also expecting to see an inventory correction in the automobile and consumer markets that would affect manufacturers of these chips as well in coming quarters.

(Excerpt) Read more at theregister.com ...


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1 posted on 09/09/2022 7:19:18 AM PDT by FarCenter
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To: FarCenter

Lemme know when car dealerships aren’t asking stupid money anymore


2 posted on 09/09/2022 7:22:12 AM PDT by V_TWIN (America...so great even the people that hate it refuse to leave)
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To: FarCenter

Pretty good strategy on the regime’s part. You cause a world wide depression and run a campaign based on $2 gasoline come November.


3 posted on 09/09/2022 7:28:29 AM PDT by hardspunned (former GOP globalist stooge)
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To: FarCenter

But I’m still waiting for a freaking chip that will enable the heated seats on a ‘22 GMC Canyon I bought this summer.


4 posted on 09/09/2022 7:33:11 AM PDT by CodeJockey ("The duty of a patriot is to protect his country from its government.” – Edward Abbey)
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To: FarCenter
What this actually points to is slowing demand for some technology products, such as smartphones and PCs,

Do many people actually need new smartphones and laptops?
My old ones work just fine. There really isn't much of an improvement in the new ones.

5 posted on 09/09/2022 7:37:12 AM PDT by SmokingJoe ( )
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To: hardspunned

What makes you think gas will be $2 come November?
Not gonna happen.


6 posted on 09/09/2022 7:38:50 AM PDT by SmokingJoe ( )
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To: V_TWIN

My son’s 2012 Subaru Impreza is starting to nickle and dime him. Except, that means $800-1500 every time it goes into the shop for repairs.
So, we went to the local Honda and Toyota dealerships on Labor Day.

Honda CRV = MSRP + $2000 you put down a $500 deposit to get one on the incoming list for October.

Toyota Rav4 = MSRP + $2500 same as above except IF you want a Red or Blue color expected wait is 5 to 6 months.

Toyota Camry = MSRP + $2500

Toyota Highlander or ANY Hybrid vehicle = MSRP + $5000

Toyota Sequoia MSRP + $7000

Do not even ask about Honda Civics and other high fuel efficiency automobiles.

IF the Subaru’s transmission was not about to SH#T the bed, he would not even consider buying at this point in time.


7 posted on 09/09/2022 7:42:45 AM PDT by woodbutcher1963
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To: woodbutcher1963

Yep. It wasn’t too long ago salesman wouldn’t even as much as suggest you pay MSRP for fear of pissing off the potential buyer.

Now if you can get a deal FOR MSRP it’s a miracle.

About a year ago I was looking at Toyota tacomas.....I noticed the price was jacked up with $2000 floor mats and $1500 dollar window tint.

Thst was the end of that.


8 posted on 09/09/2022 8:03:19 AM PDT by V_TWIN (America...so great even the people that hate it refuse to leave)
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To: V_TWIN

I rolled into the Toyota dealer about a month ago in my 2012 Tacoma Longbed. Within one minute I had two salesman asking me if I was interested in selling my truck.

It just turned 94K miles yesterday.
Best vehicle I have ever had.


9 posted on 09/09/2022 8:08:55 AM PDT by woodbutcher1963
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To: woodbutcher1963

Yep, had a ‘09 Taco and sold it in ‘19. Had right at 100k on it.

For toyotas that’s just getting broke in.

Bought a jeep this time and the difference in quality is pretty obvious. I love my jeep and can live with the lower quality level......what I’m struggling with is how much I miss my truck bed....I failed to realize how much of a necessity it is. That’s hard to live without.


10 posted on 09/09/2022 8:15:23 AM PDT by V_TWIN (America...so great even the people that hate it refuse to leave)
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To: SmokingJoe

$2 gas at the rock bottom of the scamdemic depression. I think the same kind of depression is planned for us in a coming climate scam. The only question is whether the depression will be full blown by then. I was paying $5+ for gas a few weeks ago. I paid $3.28 today. That is what the recession has done already. I think we will see $2 gas again, unfortunately.


11 posted on 09/09/2022 8:21:54 AM PDT by hardspunned (former GOP globalist stooge)
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To: SmokingJoe

Call me crazy but I sincerely think you’ll see this play out if the Dems steal the midterms. What would the non black market price of gas be if, in my town, there were one million gallons of gas in tanks at gas stations but only enough carbon credits to buy 300,000 gallons?


12 posted on 09/09/2022 8:29:34 AM PDT by hardspunned (former GOP globalist stooge)
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To: V_TWIN

I am actually on my third Tacoma.
1988 regular cab.
1999 extended cab
2012 Double cab long bed(6’).

I am fortunate that in the time I have owned all three of those trucks I never had more than a 15 mile trip to work. When I bought the first one it was almost 2.5 miles each way
Currently it is 9.5 miles. So, I never put a lot of mileage on my vehicles.

I may keep this one for awhile because there is nothing wrong with it. I would actually like to buy a Mercedes SL 560 or 500. Something with under 70K miles. I actually like the late 1980s models with the detachable hard top.


13 posted on 09/09/2022 8:45:14 AM PDT by woodbutcher1963
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To: SmokingJoe

The carriers are killing 3G service, if they haven’t already.


14 posted on 09/09/2022 8:49:59 AM PDT by Dalberg-Acton
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To: woodbutcher1963

I replaced the transmission on my old Subaru (older than your son’s Impreza). Much cheaper than replacing the car, and I got to keep a car I really like and whose seats fit my butt...


15 posted on 09/09/2022 8:53:38 AM PDT by null and void (Never suspect dishonest men of making honest mistakes.)
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To: FarCenter

The Global Downturn started with Biden’s War on Energy.


16 posted on 09/09/2022 8:53:46 AM PDT by Chgogal (Welcome to Biden's Weaponized Fascist Banana Republic! Fuhrer Biden is supported by MSM & DC.)
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To: woodbutcher1963

Of you’ve never owned a German car do the research on maintenance and parts cost.

My wife has a bmw......we love it but damn.

Best price I can get to change out the battery is over $300.

And I can’t do it myself because it’s gotta be “registered” with bmw or bad thinks happen.


17 posted on 09/09/2022 8:54:50 AM PDT by V_TWIN (America...so great even the people that hate it refuse to leave)
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To: FarCenter

Someone showed me a dealership itemized estimate a few weeks ago on a new Bronco (I think). It was listed at $35k with $20k markup simply because people were willing to pay it.

Here’s my question. I hear countless people express their suffering with gas, food, rent, etc. I feel it in my family too. We have had to tighten our belts for sure. But we also have people who are paying an extra $20k on vehicles and $150k on houses. Who and where are these people when the rest of us are stuck with waiting this out?


18 posted on 09/09/2022 10:22:37 AM PDT by Marko413
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To: V_TWIN
$2 gas at the rock bottom of the scamdemic depression.

Not with Saudi Arabia already cutting their oil production and Russia busy squeezing Europe by cutting supplies. Those arc the two biggest exporters by far.

19 posted on 09/09/2022 12:35:02 PM PDT by SmokingJoe ( )
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To: hardspunned
Call me crazy but I sincerely think you'll see this play out if the Dems steal the midterms.

That's what they think. Its just not going to happen.

What would the non black market price of gas be if, in my town, there were one million gallons of gas in tanks at gas stations but only enough carbon credits to buy 300,000 gallons?

See post # 19.

20 posted on 09/09/2022 12:45:01 PM PDT by SmokingJoe ( )
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