It has been a turbulent year in the semiconductor industry. 2020 was supposed to be a strong year (with the figures) in the forecast of Nexteck Singapore Pte Ltd and our key customers under www.nexteck.com.sg for reel and tape and packing material support. Then, the coronavirus outbreak hit. Suddenly, a large percentage of countries implemented various measures to mitigate the outbreak, such as stay-at-home orders as well as business and store closures. Economic turmoil and job losses soon followed, not to mention the human tragedy involved.

More recently, though, the semiconductor business appears to be bouncing back. To gain some insights in the market Nexteck Group is happy to discuss the latest forecast for the semiconductor market in 2020 in South East Asia.

In 2020 total semiconductor forecast calls for 3.3% growth in dollars to $430 billion. Units will decline 2.3% to 911.2 billion. In July 2019 we were forecasting 6.6% growth for 2020. When COVID-19 hit, we reduced the forecast to -0.2%. However, semiconductors and electronics have benefited from the stay-at-home economy and our forecast is back into positive territory, just 3.3% below the July 2019 forecast. One surprise is the strength of PC, notebook, and tablet upgrades. People have quickly discovered that their 5+ year-old systems were not adequate for work-at-home and remote schooling.

Currently, Nexteck Singapore Pte Ltd reviewed the latest forecast from customers of Nexteck packing materials like WLCSP carrier tapes and cover tapes, Dicing tapes, PI tapes for the semiconductor market. The market is quite strong compared to other sectors in the economy. In the near term, households upgraded their home networks, gaming, entertainment and personal electronics. Now the world is focusing on reopening and getting the economic engine humming again. Semiconductors are an integral part of that success.

www.nexteck.com.sg expect both Q3 and Q4 to show positive revenue growth. There was some inventory build of low ASP products in Q1 when vendors thought the virus would only affect China. From a supply and demand perspective, it appears that most product categories are now close to equilibrium.

The rollout of 5G, both infrastructure and devices, continues to ramp. Growth markets include the expansion of server farms for cloud and streaming services, remote working and schooling, online purchasing, security and AI. The pandemic has made telemedics more acceptable for both patient and provider. Nexteck Singapore Pte Ltd., expect to see increased efficiencies in the medical arena from electronics. High unemployment and lower disposable income will put a damper on general holiday shopping, but consumers will try to find ways to be more efficient with their electronic devices, which may result in some device upgrades. Markets that are struggling include automotive and other discretionary large home appliances. Of course, large group entertainment events and travel will not return to normal for over 12 months.

Looking into 2021, according to the orders and forecast of our clients for packing materials, like reel & tape, WLCSP carrier tape and cover tape for Nexteck Technology Pte Ltd., it is for low double-digit growth in dollars and units as the overall economics improve worldwide next year. 

As for 2021 Packing materials like WLCSP precision carrier tapes and cover tapes, www.nexteck.co.sg expect:
 # Handset for 5G and infrastructure continues to ramp.
 # Automobile sales will begin to improve (especially in China)
 # Cloud and AI at the edge will continue to penetrate more applications.
 # Cloud storage and increasing bandwidth will drive demand (especially in China)