Capex being cut

Author: EIS Release Date: Aug 30, 2023

Ten top semiconductor companies are reducing capex this fiscal year because of concerns over a supply glut and access to the China market, says Omdia.

 

They are:  Intel, GlobalFoundries, Micron, TSMC, Hynix, Western Digital/ Kioxia,  Samsung, UMC, Infineon and ST.

 

 Collectively they will cut capex by 16% to $122 billion. In FY 2022 they invested $146.1 billion.Intel wafer

 

Inventory as of the end of June at the nine companies that disclose figures went up 10% on the year to $88.9 billion — about 70% higher than in 2020.

 

 

 

Memory capex will drop 44% this fiscal year, says Omdia, and investment in processors will fall 14%. Prices of DRAM and NAND memory both fell by more than 40% for August.

 

Micron plans to cut production by 30% and capex  by 40% for the year ending August 2024 on excess-inventory concerns. Hynix cut capex by a further 5% to 10% – more than halving investment on the year.

 

There is  “concern about oversupply in some areas, such as 10- to 14-nanometer chips,” says Omdia’s Akira Minamikawa.