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Chip industry faces V shape decline then recovery

May 15, 2020
integrated circuits

Supply Chain title, EPSNews, reports on a “grim global semiconductor forecast” in this article. Everybody agrees the semiconductor market will continue to decline with “the only variable being how steep and for how long chip demand and revenues will decline.”

“As the unrelenting spread of the novel coronavirus and the resulting lockdown slow consumption and hobble global supply chains, forecasters continue to slash their growth forecasts across market sectors and applications,” they say.

“The pandemic has negatively impacted supply chains and market demand across all component categories.”

The article cites a recent study by market tracker Omdia, who predict a “V”-shaped recovery later in the year. “For now, Omdia is forecasting a 5-percent decline in annual chip revenues, excluding memory ICs. With memory chips included, annual revenues are predicted to rise by 2.5 percent to $439.3 billion, driven in part by the embrace of all-flash memory in datacenters to crunch data-driven workloads.”

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