sharon sanders
Editor-in-Chief & President
Published: 1:48pm, 7 Oct, 2022
Chip makers from Samsung to AMD see ‘breathtaking’ earnings plunge as recession looms
“It seems end demand has likely deteriorated markedly in recent weeks, and end customers appear to be aggressively draining inventory,” Bernstein’s Stacy Rasgon said. The cut in AMD’s client revenue “is admittedly a bit breathtaking”.
Weaker-than-expected demand for consumer electronics is hitting companies along with surging shipping and materials costs. Cost-cutting has become the new norm across the tech industry, and businesses that hoarded chips during the pandemic are now opting to cancel or postpone orders and tap inventory.
The semiconductor industry is also grappling with export restrictions from the US government, which is ratcheting up pressure on its allies to prevent shipment of cutting-edge chips to a growing list of Chinese companies, as it seeks to contain the Asian country. That is hampering business for chip makers from AMD to Nvidia in the world’s biggest semiconductor market.
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zhttps://www.scmp.com/tech/tech-trends/article/3195138/chip-makers-samsung-amd-see-breathtaking-earnings-plunge-recession?module=more_top_stories_int&pgtype=homepage
Chip makers from Samsung to AMD see ‘breathtaking’ earnings plunge as recession looms
- Samsung reported a 32 per cent dive in operating income, while AMD said it will miss its earlier forecast by about US$1 billion
- In addition to slowing demand for consumer electronics, the semiconductor industry is also grappling with US export restrictions against Chinese companies
“It seems end demand has likely deteriorated markedly in recent weeks, and end customers appear to be aggressively draining inventory,” Bernstein’s Stacy Rasgon said. The cut in AMD’s client revenue “is admittedly a bit breathtaking”.
Weaker-than-expected demand for consumer electronics is hitting companies along with surging shipping and materials costs. Cost-cutting has become the new norm across the tech industry, and businesses that hoarded chips during the pandemic are now opting to cancel or postpone orders and tap inventory.
The semiconductor industry is also grappling with export restrictions from the US government, which is ratcheting up pressure on its allies to prevent shipment of cutting-edge chips to a growing list of Chinese companies, as it seeks to contain the Asian country. That is hampering business for chip makers from AMD to Nvidia in the world’s biggest semiconductor market.
more...
zhttps://www.scmp.com/tech/tech-trends/article/3195138/chip-makers-samsung-amd-see-breathtaking-earnings-plunge-recession?module=more_top_stories_int&pgtype=homepage
