Q4 2022 Silicon Valley Semiconductor Report

Increases in inflation, interest rates, and worries of an impending economic slowdown caused semiconductor companies to cut costs and reduce workforce size during the second half of 2022.
Semiconductor ETF’s have largely mirrored NASDAQ’s performance1 , which has dropped 29% year-over-year.
Layoffs accelerated during the fourth quarter. During November 2022, companies in Santa Clara County had laid off 1,633 people. Santa Clara County accounted for 15 percent of all layoffs within California alone. Notable semiconductor and technology firms included Cisco (593 employees), Flex (155 employees), and Western Digital (103 employees)

Recent pivots by semiconductor and technology companies have been revealed through declines in leasing activity, with only 326,000 square feet leased in the second half of 2022 vs 1.1 million square feet in the first half of 2022.