Despite the shortage of some semiconductor parts in the second quarter of this year, notebook manufacturing companies will probably face the problem of oversupply of some parts during the third quarter of 2022. These parts include LCD panels and audio chips. This has caused the inventory of the mentioned parts in the warehouse of some notebook manufacturing companies to be in excess of their needs. Jim Hsiao; The analyst of Digitimes has mentioned this issue in a note.
This expert notes that top notebook manufacturers including Dell, ASUSTeK Computer, and Acer are currently seeing excess inventory of LCD displays in their warehouses. The reason for creating such a situation is that with the decrease in the demand for laptops, the component manufacturing companies did not reduce the supply of their products and appeared unable to adjust their product sales strategy.
Notebook manufacturing companies started the process of reducing the purchase of parts from May this year; But the parts inventory will not return to normal until August.
The oversupply of certain components is likely to affect the performance of a number of notebook manufacturers during the third quarter of 2022.
The increase in the transfer rate of audio chips, Wi-Fi and power chips during the first 3 months of 2022 will cause a surplus of notebook parts in the third 3 months of the year. Audio chip manufacturers have already reduced the price of their products for the third quarter of the year. According to Jim Hsiao, long-term supply contracts with companies supplying these chips have been suspended.
At the same time, the increasing supply of audio codec ICs, Wi-Fi ICs, and non-IDM power ICs from the first 3 months of 2022 has partially eliminated their shortage in the third 3 months of this year. Audio codec ICs will see a price reduction in the third quarter of the year – while the world’s top brands are negotiating with suppliers to reduce product prices.
Due to the sharp decline in demand for notebooks during the second quarter of 2022, the oversupply problem is expected to extend to memory chips, multilayer ceramic capacitors (MLCC) and processors. Mr. Hsiao notes that so far the price of MLCC memory chips and capacitors has fallen by more than 10 percent. Also, the price of older models of processors has also taken a downward trend. However, the price of newer models is still at the same level as before.