A global recession just around the corner. The China, Eurozone, and the United States will continue to stall even though there were only partially healed post pandemic. The re-opening has paved the way for a recovery in some countries, but the world economy still faces serious risks. Global economic growth is expected to fall within this several years. The rise in central bank rates to fight inflation and Russia’s war in Ukraine continue to worsen the economy activity.
While there are signs that the “everything bubble” is about to burst. The leading company Intel and Hynix are heading towards a hard time in the memory negative growth. My major customer last year, Intel has fully killed off its Optane memory business on July, 2022. All the future developments within its Optane business has been ceased until now. Back in 2020, Intel sold off its NAND memory chip business to SK Hynix, I had been assigned to rotate my job function from Optane NPI to NAND CPI evaluation team through the transition. The Intel division, rebranded as Solidigm, also operates factories in China. Started from the beginning of March of 2023, our team members have been stalled over our projects as Hynix decided to simplify the process design from floating gate to charged trap flash. The problems that going to be more halted activities in assembly factories.
Our team leader announced that our organization will be keep as the same as previous though there is so much uncertainty. It probably has a new Chinese customer or new project to be handled. A new announcement will be launched around in the middle of March, there is no any further tasks in this low seasons.
The U.S. dollar is strengthening because the Fed adopted a Hawkish monetary policy stance in response to skyrocketing inflation from 2022. Yesterday night, I was shocked that the Ringgit Malaysia note rose to 4.58 against the greenback from 4.47 at noon on the same day. The next day, I found the news about the U.S. durable goods orders has been slumped in a 10.1% from 5.6% to -4.5%, which means there is no demand for non-defense capital goods orders from the USA.
The next year will be rough for the world economy, the coming slump probably is inevitably and to be considered as global recession. We would see if it would be worse than the previous Great Recession period.
