Gartner: global semiconductor revenue will drop by 0.9% in 2020

Beijing time on novel coronavirus April 10th afternoon, according to foreign media reports, Gartner company predicted that due to the global pandemic of new coronavirus on the impact of semiconductor supply and demand, global semiconductor revenue in 2020 is expected to decline by 0.9%, lower than the 12.5% growth forecast in the previous quarter.

Richard Gordon, vice president of research business at Gartner, said: "the global spread of covid-19 and the strong actions taken by governments to curb the spread of the epidemic have had a more serious impact on the demand of the semiconductor industry and printed circuit board assembly than previously expected. This year's forecast may be worse, but the growth of memory business may slow down the sharp decline of business to some extent. "

Richard Gordon, vice president of research business at Gartner, said: "the global spread of covid-19 and the strong actions taken by governments to curb the spread of the epidemic have had a more serious impact on the demand of the semiconductor industry and printed circuit board assembly than previously expected. This year's forecast may be worse, but the growth of memory business may slow down the sharp decline of business to some extent. "

Richard Gordon, vice president of research business at Gartner, said: "the global spread of covid-19 and the strong actions taken by governments to curb the spread of the epidemic have had a more serious impact on the demand of the semiconductor industry and printed circuit board assembly than previously expected. This year's forecast may be worse, but the growth of memory business may slow down the sharp decline of business to some extent. "

On the memory side, NAND flash memory revenue is expected to grow by 40% in 2020 due to the continued severe shortage from 2019, which will keep pricing stable. Gordon believes: "due to the business delay and technology transformation of the wafer factory, the supply of NAND flash memory will remain at a historical low level in 2020, but the demand will decrease later in 2020. The initial price increase of 15.7% in the first half of 2020 will reverse to a 9.4% drop in the second half. However, the average price level will still make NAND flash revenue grow this year. "

In the first half of 2020, strong demand from cloud service providers will drive up the pricing and revenue of server DRAM. However, weak demand and falling smartphone market prices will completely offset this growth. Gartner analysts expect DRAM overall revenue to decline by 2.4% in 2020.

"Production of smartphones, cars and pcb board manufacturer in the non memory semiconductor market will be significantly reduced and will be severely affected by various factors," Gordon said. By contrast, with the surge in demand for remote work and online access, continued investment will allow us to see the business resilience of the ultra large data center and communication infrastructure industries. "