In this global pandemic period most of the countries across the globe are locking down themselves to stop spreading the Coronavirus. This implies offices, manufacturing, shops and every non essential means of item are under lockdown.
When naturally people are finding hard to manage food staying at their home buying a computer won’t be a good option for anyone. So, it’s very likely that the semiconductor market will face a huge impact due to this global pandemic.
There will be impact in both the semiconductor supply as well as demand. This will lead to a decline of 0.9% in worldwide semiconductor revenue this year a Gartner report said on Thursday.
This is sharply down from the earlier forecast of 12.5% growth for this year which indeed can be a huge blow for giants like Intel, AMD, NVIDIA and others. Overall, the 2020 global semiconductor revenue has been reduced from the previous 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,” said Richard Gordon, research practice vice president at Gartner.
“This year’s forecast could have been worse, but growth in memory could prevent a steep decline,” he added.
On the other hand, the semiconductor memory revenue accounts for 30% of the total worldwide semiconductor market in 2020. The memory market is forecasted to reach $124.7 billion in 2020, an increase of 13.9%, while the non-memory revenue market is supposed to reach a total of $290.6 billion, a decline of 6.1% (year-over-year).
Within the memory industry, the NAND flash revenue is forecasted to grow 40% in 2020 due to severe shortages persisting from 2019, which keeps the pricing firm.
“NAND flash supply will remain historically low in 2020 due to fab delays and technology transitions, but the demand will diminish later in 2020,” said Gordon.
The strong demand from server markets as well as the cloud service providers will push the revenue in the DRAM industry in 2020. However, the more RAM requirements these days will help the industry grow but obviously there will be a decline in revenue due to the weak demand and falling prices.
For the DRAM market overall, Gartner analysts estimate DRAM revenue will decline by 2.4% 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 forecasts.
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