- Intel plans to reduce headcount to cope with weakening demand in personal computers. Prolonged weakness for Intel could affect AEM (SGX:AWX) – It was reported that Intel is planning a major reduction in headcount, likely numbering in the thousands, out of about 113,700 employees as of July, to cut costs and cope with weakening demand in the personal computer market.
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Hot semiconductor sales to turn cool.
- According to forecasts by Gartner, overall semiconductor revenue will grow 4.0% in 2022 followed by a 3.6% decline in 2023 (vs previous forecasts of 7.4% and -2.5%). Forecasts have been revised down to account for a deterioration in the macroeconomic environment and weakening consumer demand.
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PC one of the most affected segments.
- Demand for electronic devices has been relatively weak in recent months. Overall, we continue to expect a drop in shipment for the various consumer devices in 2022, after a stellar performance in 2021 due to the COVID pandemic, with PC segment being one of the weakest.
- PC shipment is expected to drop 14.5% y-o-y this year, and another 3.3% drop in 2023, according to Gartner.
Our Thoughts
Prolonged weakness for Intel could affect AEM.
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