Over the past two years, the semiconductor industry has gained significant traction, thanks to robust demand for chips and worldwide semiconductor shortage. The Biden administration passed a long-awaited law on August 9 to provide $52.70 billion in subsidies for boosting nationwide semiconductor production and research to address the chip shortage.
However, the demand for PCs and other electronic devices has taken a nosedive lately. The slowing economy due to inflationary pressures and rate hikes have weighed heavily on consumer spending, weakening consumer electronics demand. Furthermore, major manufacturers are currently dealing with excess inventory of semiconductors, which has forced them to reconsider their capital expenditure plans.
