Overproduction – International

Faced with a severe global shortage of semiconductors and processors, it became clear to everyone last spring how critical these products are to the manufacture of everything from dishwashers to automobiles. In the United States, the administration led by President Joe Biden had allocated $ 52 billion in incentives to open new processor factories, such as the one Intel is building in Ohio. However, the world today risks finding itself with an excess of supply over demand, explains theEconomist. Micron, a processor manufacturer, reported a 20 percent decline in quarterly sales in September. AMD cut its sales forecast by 16 percent. Intel is considering reducing employees following worsening accounts. “Since July,” adds the weekly, “the top thirty US processor manufacturers have reduced their total revenue forecast for the third quarter of 2022 from $ 99 billion to $ 88 billion. This year the stock market value of the major companies in the sector exceeded 1,500 billion dollars ”.