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Global Semiconductor Market Likely to Grow 6% in 2020, reports SIA
emsnow.com, Jan. 03, 2020 –
Given the depressing run, so far, in 2019, how is the global semiconductor industry going to perform in 2020? The mid-year global semiconductor sales was down 14.5 percent, compared to 2018, as per the Semiconductor Industry Association (SIA).
Recently, SIA reported that the global semiconductor sales had increased 3.4 percent month-to-month in September 2019. Q3 sales were 8.2 percent higher than Q2, but 14.6 percent less than Q3 of 2018. Are there any hopes for a better 2020? Let's find out!
I asked Len Jelinek, senior director, Semiconductor Manufacturing at IHS Markit, the key question regarding the global semiconductor industry's performance in 2020.
Hold it, recovery in sight!
Indeed, there are hopes! Len Jelinek said, "In 2020, IHS Markit now anticipates that the market will rebound slightly and achieve a 6% YoY revenue growth." Now, that's excellent news for everyone in the global semiconductor industry!
Regarding the noticeable trends next year, he added that the market in 2020 will be driven by two significant factors. One, the return to growth for global server expansion, and two, the introduction of 5G handsets.
"The first factor will drive stabilization in memory pricing, while the second factor is very likely to drive TSMC's revenue for advanced component manufacturing to record levels. As next-generation handsets become available and at lower prices, the consumer is very likely to transition very quickly to the next generation of technology."
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