According to the latest reports, the global chip shortage is over. This statement may sound too optimistic, but the decline in the operating rates of South Korean foundries such as Samsung, DB Hitek, Key Foundry, Magnachip and SK Hynix System IC supports this statement. The chip industry is reportedly moving towards a more sustainable supply chain.

The global microchip shortage, which started during the pandemic process, affected the whole world. The decline in production capacity and the simultaneous increase in demand led to a protracted crisis. Although manufacturers are operating at near full capacity to meet demand, both prices and product availability remain limited.

However, this period is now over. Recent reports indicate that many producers in South Korea are operating at 60-70% capacity. The only exception is Samsung, which works at 80% capacity. Unfortunately, the impact of global inflation and reduced demand for IT products has resulted in both chip prices and demand falling. Consumer electronics companies are also struggling with high inventory levels.

Unfortunately, this situation negatively affects consumers. People who paid high wages only a few months ago due to shortages of goods and materials will now buy products at low prices due to rising costs and inflation.