Coronavirus Impact: Global Semiconductor Revenue will Witness Steep Decline in 2022

The new coronavirus pandemic volition hit the semiconductor supply and demand, leading to a reject of 0.9 per cent in worldwide semiconductor revenue this year, a Gartner report said on Th. This is sharply down from the earlier forecast of 12.5 per cent growth for the year.

Overall, 2020 global semiconductor acquirement has been reduced from the previous quarter'due south forecast past $55 billion, to $415.4 billion.

"The wide spread of COVID-xix beyond the earth and the resulting strong actions by governments to comprise the spread will have a far more severe touch on on demand than initially predicted," said Richard Gordon, enquiry practice vice president at Gartner.

"This year's forecast could have been worse, but growth in retentivity could prevent a steep turn down," he added. Semiconductor memory revenue will account for xxx per cent of the total worldwide semiconductor market in 2020. The memory marketplace is forecast to attain $124.7 billion in 2020, an increase of 13.ix per cent, while the nonmemory revenue market is on pace to full $290.6 billion, a reject of six.one per cent (year over yr).

Within memory, NAND flash revenue is forecast to grow 40 per cent in 2020 due to severe shortages persisting from 2019, which keeps pricing house.

"NAND flash supply will remain historically low in 2020 due to fab delays and applied science transitions, but the demand volition diminish later in 2020," said Gordon. Stiff demand from cloud service providers in the first one-half of 2020 will push pricing and acquirement college in server DRAM. However, this growth will be more than offset by weak need and falling prices from the smartphone market.

For the DRAM marketplace overall, Gartner analysts estimate DRAM revenue volition decline two.4 per cent in 2020. "Non-memory semiconductor markets will experience a meaning reduction in smartphone, automobile and consumer electronics production and be heavily impacted beyond the board," Gordon informed.