In 2021, the global semiconductor supply chain suffered from a serious shortage of capacity. The shortage covered the upstream raw materials(such as silicon wafer, substrate, photoresist, and MLCC) and the capacity of wafer foundry, encapsulation and so on,which cause the shortage of chips and the rise in price in the whole industry. It also led to the severe impact on the capacity of PC, laptop and smartphone. Some of the semiconductor chip prices increased more than ten-fold.

The chip shortage is sapping the vitality of the global economy, its impact has spread to many industries, meanwhile, it has provoked worries of high inflation. As the shortage tide continues to spread, some brand manufacturers have announced that they are going to increase the production capacity of wafer.

However, in 2022, due to the high inflation, the war between Russia and Ukraine, and the weak downstream demand, the price of chips has avalanche.

The ongoing war between Russia and Ukraine and the interest rate hikes by central banks have dampened economic activity, which cause growing concern about the falling demand for chips.

In the $500 billion global semiconductor market, memory chip is susceptible to global economic performance. After soaring in the past two years as the pandemic affected the supply chain, chip prices have fallen back with the supply and demand shifts.