Analysts predict a potential chip oversupply in 2023

The IDC has predicted that the semiconductor industry might be oversupplied in 2023 as capacity expansions go online.



Read more about the IBC's prediction of a potential 2023 silicon oversupply.

I can't say that this is a bad thing! it should make chips cheaper.

Yeah,I expect that as well. Though manufacturer's can just choose to limit supply maintaining prices... I'd still hope we can get back to pre-JapanTsunami levels of price for silicon products. That would be great but admittedly too much to ask...

An oversupply is needed for a lot of people and more so for prices to fall to msrp.

It'll not be the same next gen late next year thou it'll be the same issue all over again, so i doubt it's anything to worry about tbh might help some that have had no choice but to wait until now.

Oh yeah, baby. I am so excited for the POTENTIAL oversupply at some point in 2023. I am so hard right now. /s

Thing is, even if there is oversupply I don't feel that the costs to the consumer will drop accordingly. Maybe a little bit, sure, but ultimately the market has proven that they're willing to pay current prices, so I can't imagine them ever dropping to where they should be ever again.

Daiyus said:

Thing is, even if there is oversupply I don't feel that the costs to the consumer will drop accordingly. Maybe a little bit, sure, but ultimately the market has proven that they're willing to pay current prices, so I can't imagine them ever dropping to where they should be ever again.

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it wont drop in 2023 until all demand has been met. Its only when they have surplus they need to shift we would see a difference. And even then, that price drop probably won't reach us. Since we gleefully keep paying to prices.

Daiyus said:

Thing is, even if there is oversupply I don't feel that the costs to the consumer will drop accordingly. Maybe a little bit, sure, but ultimately the market has proven that they're willing to pay current prices, so I can't imagine them ever dropping to where they should be ever again.

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Only a small portion of the market has really proven they're willing to pay current prices tbf, there are almost twice as many GTX 1060's users on the Steam hardware survey as there are of all current gen GPU users combined, a good portion of the PC gaming market are still unwilling or unable to pay more than ~£180/$200 for a GPU and nothing seems to indicate that has changed, some users may switch to console gaming in the mean time but for many due to their existing game library, friends platforms, setup, other requirements, ect will stick with their PC until something is available for them.

Luckily it seems Intel will be focussing almost entirely on what will then likely be the low-mid end space with their first gen cards. For AMD & NVidia, while supply is low and shipping is constrained they are best off using that supply on the highest profit products available because they can only sell so many of them, while there's still untapped income in the high end market that's the most profitable place for them to put their limited manufacturing resources, but once capacity increases, the increased earning potential of cheaper, higher volume cards will still be there too and they'll have no reason to ignore that extra potential profit.

That's before getting into secondary considerations like creating brand loyalty with new customers, or getting more of the userbase using their latest features so developers take better advantage of them, providing a boost to the whole generation of cards.

Well IDC Said it'll be back to normal mid next year. So supply will be met. That just means after it'll be complete over capacity.


I think though many companies will take the Toyota route(from 2011) and over order chips so they can have inventory stocked in case something ever happens again.

NeverBackDown said:

Well IDC Said it'll be back to normal mid next year. So supply will be met. That just means after it'll be complete over capacity.


I think though many companies will take the Toyota route(from 2011) and over order chips so they can have inventory stocked in case something ever happens again.

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That is what im thinking. The car industry is hurting right now with lack of silicon, so chances are other makers like Ford will do the same.