Dutch semicon companies stand tall at start of downturn

The downturn has started. Global semiconductor sales in Q3, reported by WSTS as a three-month moving average, were down 6.3 percent sequentially and 3.0 percent year-on-year, marking the first contraction since January 2020. Typically, Q3 is the strongest quarter for chipmakers, as their customers prepare for increased consumer spending during the Holiday season.

It shouldn’t come as a surprise after a downright pessimistic earnings season. Probably the most gloomy comment came from Rick Tsai, CEO of the Taiwanese fabless Mediatek: “Our industry hasn’t seen a downturn of this magnitude in probably over a decade. There were fluctuations in the last 10-12 years, but nothing compared to this. I would call it a severe downturn,” he told investors.