Singapore’s semiconductor firms in for rough ride as industry sits on stockpiles of unused chips

Singapore supplies 11 per cent of the world’s semiconductors and 20 per cent of chip-making equipment. PHOTO: BLOOMBERG
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SINGAPORE - Singapore’s semiconductor industry is headed for a rough patch as the unprecedented rise in consumer demand for electronic goods over the past two years falls victim to surging inflation and slowing economic growth worldwide, leaving the industry sitting on stockpiles of unused chips.

Most analysts believe the decline in global semiconductor sales that started in the third quarter of 2022 may persist for a few more quarters, and the inventory glut will clear only some time in the second half of 2023.

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