Tech »  Topic »  Chip glut might start in 2023, says IDC, and auto-chip traffic jam could clear this year

Chip glut might start in 2023, says IDC, and auto-chip traffic jam could clear this year


Analyst firm IDC says the global semiconductor industry is showing signs of "potential for overcapacity in 2023 as larger scale capacity expansions begin to come online towards the end of 2022".

A brief note on the industry's prospects states: "dedicated foundries have been allocated for the rest of the year [2021], with capacity utilization at nearly 100 per cent.

"Front-end capacity remains tight but fabless suppliers are getting the production they need from their foundry partner," the note states, adding "Front-end manufacturing is starting to meet demand in 3Q."

But we're not out of the woods, because the firm predicted "larger issues and shortages will remain in back-end manufacturing and materials". The note doesn't say if, or how, material shortages will ease by 2023. But it is bullish on manufacturing capacity catching up to demand in that year.

Costs are also predicted to rise. "Semiconductor wafer prices ...


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