The Chip Insider®– Soft Landing or
Hard Landing?
Author: G. Dan Hutcheson
Summary:
Last week, I looked at America’s presidential election and the bill chip companies might be hit with should former President Trump get elected. This week, with chip stocks signaling a hard landing, I’ll be looking into a bigger bill: the impact of the Fed’s tightening with the dual goal of lowering inflation, while achieving a soft landing. All too often, soft landings in the macroeconomy result in hard semiconductor landings…
The weather affecting the industry is extremely important, which is why the TCI Graphics file and its ICscenarios tab are so important. When chip stocks signal rough seas ahead, it’s always important to go over this, because I am worried that as everyone looks at that one-trillion-dollar horizon in 2030, they’re not seeing the rough seas in front of them. I could well be wrong, but it does bear paying attention to equipment content rates, utilization, and silicon produced compared to past levels to better understand the potential danger in planning your business.
"History never repeats itself… But it often rhymes." – as Mark Twain is reputed to have said.
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