A new report from Semico Research forecasts that global semiconductor sales will only be down -0.22 percent for fiscal year 2020. The firm’s research shows that, despite a worldwide economic downturn resulting from the COVID-19 pandemic, quarterly semiconductor revenues for 1Q 2020 declined only 3.4 percent from 1Q 2019 and were actually up 6.8 percent versus 1Q 2019.
Using the proprietary Inflection Point Indicator (IPI) model, Semico analysts expect a recovery in the second half of 2020, barring any unforeseen circumstances resulting from the pandemic. These findings are based on the potential of computing, communications, consumer, and medical electronics sectors that have become essential in the wake of the pandemic.
“The Covid-19 pandemic pushed the economy into a quick and deep contraction, but even with a worldwide economic downturn, there is a silver lining for the semiconductor industry,” says Jim Feldhan President of Semico Research. “Today there is an increased reliance on electronic technology compared to the needs in 2008. Although the automotive segment will be the most negatively impacted, the need for medical equipment both industrial and consumer, the increased demand for PC upgrades and the need for 5G builds a case for a less dramatic impact on the semiconductor industry for 2020."
For more information, visit https://semico.com/.
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