Pandemic boom turns to bust as recession looms

Declining business: Technicians inspect a piece of equipment during a tour of the Micron Technology automotive chip manufacturing plant in Virginia. The tech giant warns that demand is evaporating fast as the industry faces the familiar problem of growing inventory and shrinking demand. — AP

SHANGHAI: Even in an industry famous for its roller-coaster cycles, chipmakers are bracing for a particularly severe shift in coming months, when a record-setting sales surge is threatening to give way to the worst decline in a decade or more.

The semiconductor market enjoyed a massive run-up in orders during the pandemic, sending sales and stock prices to new highs and triggering a global scramble to find enough supplies.