The coronavirus crisis will undercut growth in the global semiconductor business in 2020, with the looming threat of global recession prompting Omdia to slash its market forecast—despite soaring demand for chips from the medical sector.
The worldwide semiconductor market now is expected to decline by 5% in 2020, excluding memory ICs, according to a new report by technology market researchers, Omdia. With memory included, global revenue for the overall market will total US$439.3 billion in 2020, up 2.5% from US$428.5 billion in 2019. This is a significant reduction from the previous Omdia forecast of 5.5% growth for this year.
“Omdia has cut its semiconductor forecast substantially as the ramifications of the coronavirus on the global economy have come into sharper focus,” said Myson Robles-Bruce, research analyst, semiconductor value chain, at Omdia. “With Japan already in recession and economists expecting the U.S. and Europe to enter recessions in the second quarter, demand is weak in every region and almost every market. The pandemic has negatively impacted supply chains and market demand across all component categories.”
The above chart is copyright Omdia
