Chips making business made too many chips. Total shortage of chips was replaced by their surplus, as manufacturers began to sharply increase capacity and create new enterprises to produce more components, while the demand for many gadgets, on the contrary, fell. This is reported by Forbes.

It is noted that one of the largest chip makers, TSMC, asks its employees to go on vacation, as the volume of orders decreased, and the situation is noticeable in the market of computers and smartphones. “While some chip makers are swimming in inventory, some chips remain in short supply,” the article said.

TSMC’s leading customers — Apple, AMD, Intel, MediaTek, NVIDIA and Qualcomm — are still very modest about future sales, meaning they are not going to increase chip orders. According to experts, the trend will continue into 2023. US chip production is also increasing.

Some of the experts thought that because of the pandemic and the growth in sales of new smartphones and other gadgets demand can be satisfied for years to come. As a result, for the release of new models manufacturers will need to free up warehouses from the old and wait for high demand. Experts have concluded that the abundance of chips is not fixed only at automakers.

Earlier it was reported that in the third quarter of 2022 PC and laptop manufacturers around the world delivered 71.1 million devices to the market, down 15.5% compared to the same period last year.

Earlier, we reported that Moderna covid vaccine maker’s quarterly net income more than tripled.