Due to falling demand in the microchip market, a historic crisis has begun

A record drop in demand provoked a historic crisis in the microchip market, about this informs Bloomberg agency.

According to him, shares of semiconductor manufacturers began to decline, which harms the economy of Asian countries.

After the pandemic, when buyers actively purchased devices for remote work, there was a decrease in consumer demand, and surpluses of products formed. Sales were down 30 to 50 percent, said Greg Roh, head of technology research at HMC Investment & Securities, calling it an “abnormal” situation.

“This is a level that we have not seen for 25 years,” added Tim Archer, CEO of Lam Research microchip equipment corporation, pointing out that market players are forced to take extraordinary measures.

Earlier it was reported that the global smartphone market experienced the worst third quarter since 2014. Global smartphone shipments plummeted nine percent in the three months ending September, according to market research firm Canalys, extending a decline that has continued through 2022.