Memory hoarding and skyrocketing prices hit entry-level electronics demand, foundry orders — China's top chipmaker points to supply chain pressures squeezing out consumers

The high prices of memory chips are impacting the demand for entry-level consumer electronics, as manufacturers are less likely to absorb the increased costs. China's top chipmaker, SMIC, highlighted supply chain pressures leading to adjustments in foundry orders to align with market needs. Factors like memory overbooking have contributed to the surge in memory prices, affecting orders for mid to low-end smartphone processors. While TSMC expects minimal growth in smartphone processor units due to declining demand for entry-level and mainstream SoCs, they remain less affected as they primarily supply high-end smartphones. Despite the decline in sales of inexpensive handsets, SMIC anticipates sustained growth by focusing on domestic chip adoption and new product development.