According to reports, the semiconductor boom is beginning to show signs of weakness, hit by a slump in personal computer sales and a weakening cryptocurrency market.
Intel Chief Financial Officer David Zinsner said the second half of the year could be more chaotic than the first, and the company plans to adjust spending and investments based on that. Intel took some austerity measures in June, including temporarily halting hiring in its PC chip division.
Micron Technology last week issued a conservative sales forecast, with Chief Executive Sanjay Mehrotra warning that the industry demand environment has weakened and sales of PCs and smartphones have been declining. The company said it was cutting some spending plans to adapt to new market dynamics.
Nvidia said it was scaling back hiring in preparation for slowdowns in its two key areas, cryptocurrencies and video games.
AMD CEO Lisa Su said last month that the company has taken a conservative view on PC sales this year and expects computer demand to be roughly flat for the next few years.
Chip executives, computer retailers and distributors say the market malaise has gotten worse in recent months and is more subdued than many expected at the start of the year.
Semiconductor industry analysts say recessions in semiconductors happen every 3 to 4 years, so there could be a next one on the way.
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