Semiconductor companies have produced a large number of chips. This is reported by Reuters.

Journalists recorded a surplus of goods in the global semiconductor market. According to experts, the supply chain crisis caused by the global pandemic first deprived tech manufacturers of equipment and then forced them to produce more chips. But consumer spending has dwindled due to high inflation, the lockdown in China, and the war in Ukraine.

The authors believe that in connection with this, consumers are starting to buy various equipment less often – especially smartphones and computers. “In some sectors, the shortage of chips has turned into a surplus, which has taken the market by surprise,” the experts said. Therefore, memory chip maker Micron Technology has already announced that it will cut down on equipment production.

TechInsights economist Dan Hutcheson compared the crisis of overproduction to the panic buying of toilet paper during a crisis. “Hoarding is when manufacturers will one day look and say, ‘Why do we have all this inventory?’ It’s a sign that they think it’s important until they say so – stated the expert.

Analysts noted that not all market sectors and manufacturers were affected equally. Yes, TSMC and Apple continue to increase production as the demand for devices of the American brand remains consistently high.