According to reports, the recent downturn in the semiconductor industry is severe. Analog Devices said that the order cancellation rate has increased slightly, while major semiconductor manufacturers such as TSMC and Renesas have issued warnings of excessive inventory.

Citigroup analysts said in a report that because the delivery time is still very long, many companies have not yet realized the problem of excess inventory, and the number of semiconductor orders cut by the end of September is expected to rise by the end of September.

Analysts believe the semiconductor industry is entering its worst downturn in at least a decade. Given the recession and rising inventories, this will likely be the worst recession since 2001.

Reports say semiconductor companies are going through a tough 2022. Sales of PCs and video games have been weakening due to declining consumer demand, while demand in the Chinese market has also been weak. Micron's chief financial officer, Mark Murphy, said recently that the slowdown in sales is spreading to automotive and industrial customers.