Intel, Samsung, Micron brace for slump as chip cycle tips downward

Economic slowdown chills tech demand, leaving semiconductor inventories glutted

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Demand for a wide range of semiconductors has dropped sharply after prolonged supply shortages. (Photo by Wataru Ito)

RYOSUKE EGUCHI, Nikkei staff writer

TOKYO -- The semiconductor boom of the past few years appears headed toward a bust amid rapidly slowing sales of devices such as personal computers and smartphones, with new U.S. restrictions on chip exports to China potentially set to worsen the pain.

Recent earnings reports paint a grim picture across the industry. Intel on Thursday reported an 85% year-on-year plunge in net income for the third quarter on a 20% drop in sales.

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