Skip to main content

China's Chip Industry Brace for Oversupply as Geopolitical Pressures Intensify

Published: 11.13.2023

Semiconductor Manufacturing International Corporation, China's largest contract chipmaker, has warned that geopolitical tensions are stoking a global glut of semiconductors. The company said in a statement that the current market is "overly supplied" and that it expects prices to fall further in the coming months.

SMIC's comments come as the global semiconductor industry is grappling with a number of headwinds, including a slowdown in demand from key customers such as smartphone manufacturers and PC makers. The industry is also facing supply chain disruptions caused by the COVID-19 pandemic and the war in Ukraine.

SMIC's warning is likely to have a significant impact on the global semiconductor industry. The company is one of the world's largest producers of semiconductors, and its products are used in a wide range of electronic devices.

The global chip glut is expected to have a number of implications for the industry. Prices are likely to fall further, which could lead to consolidation among chipmakers. The oversupply could also lead to layoffs and factory closures.

This will also likely have a ripple effect on other industries that rely on semiconductors, such as the automotive and consumer electronics industries. These industries could see lower prices for semiconductors, which could lead to increased production and sales.

Stay up to date
Read industry news, product offers, and events.
Join email list