The Wall Street Journal reports that two major chip manufacturers just slashed their outlooks for the near term, warning of waning demand for consumer products and lighter shipments from semiconductor plants.

Qualcomm cut its forecast for smartphone shipments for the second time, signaling that the downturn in the handset market is accelerating. Many chip makers are going through a rough patch after profiting from soaring demand for electronics during the shift toward working and learning from home.

Intel is targeting layoffs amid a drop in PC demand, and Advanced Micro Devices says it also is cutting costs as its customers grow cautious about building out their computing infrastructure. 

The weakness is already hitting airfreight markets. Clive Data Services says global air cargo volumes fell 8% year-over-year in October and were also off 3% from the pre-pandemic level in 2019.