Chipmakers warn global economy

Concerns about demand are growing among chipmakers. South Korean giants are signaling a scaled-back on investment. North Asia’s high-tech exporters, which are driving demand for semiconductor chips, are growing increasingly anxious. South Korean giants Samsung Electronics and SK Hynix have signaled plans to scale back investment, while Taiwan Semiconductor Manufacturing, the world’s largest maker in the East China Sea, has signaled a similar outlook. The makers are underscoring a darkening picture as weakening technology demand, Russia’s war in Ukraine and rising interest rates dent activity. In recent weeks, leading chipmakers Micron Technology, Nvidia, Intel and Advanced Micro Devices have warned of weaker export orders. Gartner is forecasting an abrupt end to one of the industry’s great boom cycles. The research firm has cut its revenue growth outlook to 7.4% in 2022 from 14% seen three months ago.