Chip Glut to Last Most of 2023 while Auto Crunch Persists

· Most severe imbalance between supply and demand in both DRAM and NAND memory chips in the last 13 years

The semiconductor surplus that emerged in the second half of last year is not expected to ease until at least autumn, according to industry analysts, although a shortage impacting the automotive industry will likely remain throughout the year.

The supply glut in memory chips is especially pronounced for smartphones due to a drop in demand for the devices.

“The industry is experiencing the most severe imbalance between supply and demand in both DRAM and NAND memory chips in the last 13 years,” Micron Technology Sanjay Mehrotra said in an earnings call last month. The company reported a 47% drop in revenue in the September-November quarter compared with a year earlier.