Chip Makers Expect Demand Slowdown to Expand Beyond PCs, Smartphones (while Biden signs bill to boost chip making)

White House commits to long-term U.S. chip expansion as companies dial down near-term spending 

By Asa Fitch of The WSJ. Excerpts:

"The chip industry that was bracing for a difficult period with laptop sales slumping is adjusting to a wider and sharper slowdown even as semiconductor companies prepare to spend billions of dollars on new factories."

"On the same day, President Biden signed an investment plan that allocates more than $50 billion to finance future U.S. chip development and production."

"auto makers are becoming more cautious consumers of chips after struggling for about two years to secure adequate supply"

"a flurry of bad news from chip makers, which have cited slowdowns in sales linked to PCs, graphics cards and videogames. Intel Corp. shocked the market two weeks ago with a quarterly loss and cut its full-year outlook. Advanced Micro Devices Inc. days later issued a muted outlook, and Nvidia Corp. on Monday warned that sales would come in below its own forecast."

"Washington plans to underwrite some of that expansion to ensure factories are built in the U.S. with funding that has enjoyed rare bipartisan support"

"Mr. Biden said the new law represents “a once-in-a-generation investment in America itself.”"

"One area of strength for chip companies’ financial results in the past weeks has been demand for server chips, but even that area is flashing warning signals."

"Many electronics that were hard to obtain a year ago are now in freer supply as inflation concerns and a shakier economic outlook weigh on consumers."

"PC shipments are expected to fall by 9.5% this year"

"Micron said sales for its current fiscal quarter may come in at or below the roughly $7.2 billion it forecast in June, while projecting more challenges in the following quarter."