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https://www.cnbc.com/2022/07/12/computer...-glut.html

Computer chips face toilet paper hoarding moment as shortage turns to glut

A supply chain crisis triggered by the global pandemic deprived makers of PCs and smartphones to cars of computer chips needed to make their products.

Chip shortages turned into a glut in some sectors. By late June, memory chip firm Micron Technology said it would reduce production.

Chip shortages turned into a glut in some sectors, taking Wall Street by surprise. By late June, memory chip firm Micron Technology said it would reduce production. The market reversal caught Micron off guard, admitted Chief Business Officer Sumit Sadana.

As U.S. chip earnings reporting season kicks off later this month, TechInsights’ chip economist Dan Hutcheson warned of more bad news following Micron’s grim forecast. “Micron kind of plowed the ground, with their honesty,” he said.

Worries about an industry downturn have slammed chip stocks, with the Philadelphia Semiconductor index tumbling 35% so far in 2022, far more than the S&P 500′s 19% loss.

Hoarding is making it worse. Like nervous shoppers raiding supermarket aisles for toilet paper ahead of a Covid-19 lockdown, manufacturers stockpiled computer chips during the pandemic. Before that, “just in time” manufacturing was the norm for fiscally conservative companies, which ordered parts as close to production time as possible to avoid excess inventory, reduce warehouse capacity and cut upfront spending.
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News of the UK holding the first-ever AI Safety Summit this autumn was announced by British Prime Minister Rishi Sunak during a visit to the US in June. Citing UK government sources, a report from Nikkei. Japon is Not Happy.
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