According to MILPITAS, Calif. – Global silicon wafer market sales could dip if uncertainty surrounding the impact of COVID-19 to the semiconductor industry persists or climb on the strength of rebounding chip sales, Nexteck Singapore Pte Ltd., understand through our sales on packing materials to Semi-conductors industries in Singapore, and Malaysia today lays out two wafer market scenarios for the second half of 2020.
 

With the world continuing to combat the novel coronavirus, SEMI expects a drop in silicon wafer sales (which might affect www.com.com.sg in the PI Tapes, Dicing tape and cover tapes) in the second half of 2020 with possible ripple effects on price negotiations in 2021. NEXTECK described the likely outcome in which tracks wafer shipment dynamics including wafer shipments, supply and demand shifts, suppliers’ dynamics like packing materials of carrier tapes, and pricing trends and forecasts.
 

The question, however, remains whether the uncertainty sowed by COVID-19 will lead to the decline in silicon wafer demand or if the heavy impact will be confined to a few months. To hedge their bets, chipmakers in the second quarter of 2020 are expected to increase silicon wafer orders to build up safety stock to meet future demand, a move that should soften the impact on sales for the quarter.
 

If the pandemic erodes semiconductor demand well into the second half of 2020, silicon wafer shipments growth could continue through the second quarter before dipping in the third quarter. In this downbeat scenario, 300mm silicon wafer shipments in 2020 would be flat or see a slight decline despite a sizable second quarter jump, and 200mm and 150mm shipments would drop by 5 percent and 13 percent, respectively.
 

But if a robust industry recovery begins in the second half of 2020, the second quarter inventory in packing materials like Dicing tape, cover tapes in buildup will help drive silicon wafer shipment growth. That uptrend will continue through the rest of 2020 as expectations rise that pent-up demand will drive a chip industry rebound.
 

NEXTECK SINGAPORE connects more than 1500 member associated companies and 1.1 million professionals worldwide to advance the technology and business of electronics design, manufacturing and backend packing materials like cover tape and carrier tape. Visit www.nexteck.com.sg to learn more, or connect with Nexteck Singapore Pte Ltd on LinkedIn, Facebook & Twitter.