The news: Chipmakers Samsung, Hynix, and Micron are warning of a semiconductor slump heading into Q4, with disruptions and shortfalls heading into 2023, per Bloomberg.
Silicon sector’s gloomy outlook: Executives from Samsung, the world’s largest maker of memory chips, said the outlook for the remaining year will be gloomy. The industry expected some momentum toward recovery, but it’s not happening.
Like many chipmakers, Samsung is caught in the middle of a conflict between China and the US.
The problem: As a slumping PC market, which is on a 8.2% YoY decline, factory closures in China, and plummeting demand send the industry into turmoil, chipmakers like Samsung, Hynix, and Micron could cut costs by pausing production plans.
The bigger picture: Chipmakers will continue to be cautious heading into 2023 as they navigate relationships and future expansion with China and the US.
This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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