The semiconductor cycle has already turned and is likely to continue softening into next year. As the world’s largest producer of chips, Asia is set to bear the brunt of the hit to growth.
Semiconductor Shortage
After five consecutive years of production cuts, Japan’s key auto industry looks poised for recovery. Unfilled orders are still elevated, so the gradual easing of the semiconductor shortage that began in early summer should enable auto production to continue to bounce back into early-2023.
