Chipmakers have had a difficult year-and-a-half. A COVID-era supply shortage and a boom in demand for electronics from work-from-home consumers supercharged company profits. But now, the hangover: High inflation moderated demand for new computers and smartphones, while manufacturers and retailers stockpiled goods to prepare for future shortages. That led to a glut of chips right as customers started cutting orders.
But now, a series of earnings from chipmakers show that the market may be about to turn around. On Tuesday, South Korean electronics manufacturer Samsung reported narrower losses in its semiconductor business, at $2.7 billion for the three months ending September compared to $3.2 billion in each of the first two quarters of the year.
