Coronavirus Impact: Global Semiconductor Revenue will Witness Steep Decline in 2020

Coronavirus Impact: Global Semiconductor Revenue will Witness Steep Decline in 2020
The new coronavirus pandemic will hit the semiconductor provide and demand, resulting in a decline of 0.9 per cent in worldwide semiconductor income this 12 months, a Gartner report stated on Thursday. This is sharply down from the sooner forecast of 12.5 per cent progress for the 12 months.

Overall, 2020 international semiconductor income has been decreased from the earlier quarter’s forecast by $55 billion, to $415.4 billion.

“The wide spread of COVID-19 across the world and the resulting strong actions by governments to contain the spread will have a far more severe impact on demand than initially predicted,” stated Richard Gordon, analysis observe vice chairman at Gartner.

“This year’s forecast could have been worse, but growth in memory could prevent a steep decline,” he added. Semiconductor reminiscence income will account for 30 per cent of the whole worldwide semiconductor market in 2020. The reminiscence market is forecast to succeed in $124.7 billion in 2020, a rise of 13.9 per cent, whereas the nonmemory income market is on tempo to complete $290.6 billion, a decline of 6.1 per cent (12 months over 12 months).

Within reminiscence, NAND flash income is forecast to develop 40 per cent in 2020 because of extreme shortages persisting from 2019, which retains pricing agency.

“NAND flash supply will remain historically low in 2020 due to fab delays and technology transitions, but the demand will diminish later in 2020,” stated Gordon. Strong demand from cloud service suppliers within the first half of 2020 will push pricing and income increased in server DRAM. However, this progress will probably be greater than offset by weak demand and falling costs from the smartphone market.

For the DRAM market general, Gartner analysts estimate DRAM income will decline 2.4 per cent in 2020. “Non-memory semiconductor markets will experience a significant reduction in smartphone, automobile and consumer electronics production and be heavily impacted across the board,” Gordon knowledgeable.

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