15 Apr 2020 -

Chip market – Covid halves capacity in 3 months

Silicon wafer

A new report by GlobalData, a leading data and analytics company, claims there’s been a 50% cut in semiconductor operating capacity in the space of three months.

At the same time, the global supply chain has stalled, exacerbated by COVID-19-related border checks that could last for months.

David Bicknell, principal analyst at GlobalData, says, “The COVID-19 pandemic will shrink worldwide end-user demand for everyday products powered by semiconductors,” he said in an article published in Electronics Products and Technology.

On the supply side, the manufacturing operations of China-based dynamic random access memory (DRAM) and flash memory plants have been largely unaffected, as highly automated semiconductor fabrication plants need little manpower, reports the article.

“The captive semiconductor operations of Apple, Huawei, Google, Amazon, and Alibaba, remains long-term, up to five years ahead, and designers can use cloud-based services,” Bicknell concludes. “By then, China’s currently weak semiconductor industry will have grown to become a challenging competitor for the US.”

Related News

18 Jul 2024 - General

New Study Unveils Significant Value of Authorised Electronics Distributors

Read more

16 Jul 2024 - Defence

Astute Group Strengthens Embedded Computing Portfolio with AiTech Systems Distribution Deal

Read more

10 Jul 2024 - General

Counterfeit GPUs on the Rise: A Growing Concern for the Electronics Industry

Read more

09 Jul 2024 - General

DRAM Prices Skyrocket Amidst AI Boom and Production Shifts: A Deep Dive into the Memory Market

Read more

08 Jul 2024 - General

US Government Invests in Semiconductor Workforce to Combat Looming Talent Crisis, But Challenges Remain

Read more

07 Jul 2024 - General

Semiconductor Manufacturing Equipment Sales Expected to Explode

Read more