According to the Electronic Times, due to the slow process of de stocking and the lack of significant demand, many semiconductor industry chain companies have chosen to release all the bad news in Q4, expecting to rebound after the rapid bottom. It is predicted that the worst performance of semiconductor and electronics industry chain will fall in Q4 of 2022 and Q1 of 2023.

Affected by factors such as global economic downturn and inflation, the demand of semiconductor industry chain is weak. Although many companies did not fall into losses, Q4 revenue will decline significantly under the impact of customers' stop pulling goods, cutting orders and falling prices. According to industry estimates, the worst situation of semiconductor and electronic industry operation is expected to fall in Q4 of 2022 and Q1 of 2023, and many manufacturers have already shown weakness in the second and third quarters ahead of time. Among them, the supply chain performance of terminal PC, mobile phone brands and IC design manufacturers has rapidly reversed, and it will take at least several quarters for many large factories to warn that the inventory has fallen to the normal level.

In the third quarter, the supply chain successively revealed a sharp drop in financial reports, and the financial forecast continued to be revised down. At the same time, Intel, Meta and other major international manufacturers were very conservative about their future outlook, and started the layoff plan. Many manufacturers could no longer bear the low ebb. They chose to release all the bad news at the beginning of the cold winter of the fourth quarter, hoping to rally after the fast bottom.

For example, Intel revised down its 2022 annual performance estimate at the end of October, reducing its revenue from $76 billion estimated at the beginning of the year to $63 billion to $64 billion, and decided to cut its operating costs by $3 billion in 2023 and at most $10 billion by 2025. In addition, Qualcomm has also significantly revised the global smartphone shipment forecast for 2022, and announced that it will freeze personnel and reduce spending, while MediaTek estimates that the fourth quarter revenue will be reduced by more than 20%.

Yesterday, Samsung warned that its inventory continued to rise. Due to weak product demand, Samsung's inventory assets increased in the third quarter, exceeding 57 trillion won. In order to reduce the supply chain risk, Samsung has increased the purchase of raw materials, but in the continuous economic recession, the global demand for products has not recovered.