Taiwan media: The overall shortage of chips has eased

Although the supply of foundry production capacity is still tight after the price of chip products soared last year, it is more difficult to further increase the price this year, and chip design companies are facing a test to maintain the level of gross profit.

According to Taiwanese media, as the overall shortage of chips eases, suppliers of some product categories have already felt the impact of the industry cycle. Display panel driver chip companies on the island said that market demand is gradually returning to the traditional cycle of light and peak seasons.

Some touch and sensor chip companies on the island also reported that revenue in the first quarter may have declined compared with the fourth quarter of last year.

According to Taiwanese media analysis, in the face of the continued rise in foundry prices and the difficulty in raising prices of terminal products, chip design companies on the island will optimize their product mix and allocate the obtained production capacity to high-margin products to maintain a stable profit level.

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