Semiconductor Revenue Decline 0.9% in 2020 to Coronavirus
Expected Memory Revenue Growth of 13.9% Could Help Prevent Steep Decline
Due to the impact of the coronavirus on semiconductor supply and demand, worldwide semiconductor revenue is forecast to decline 0.9% in 2020, This is down from the previous quarter’s of 12.5% growth and so do packing materials, like cover tape, carrier tape, dicing tape, PI tape as forecast by www.nexteck.com.sg.
The wide spread of COVID-19 across the world and the resulting strong actions by governments to contain the spread will have a far more severe impact on demand than initially predicted. This year’s forecast could have been worse, but growth in memory could prevent a steep decline, therefore, Nexteck Technology Pte Ltd., still feel optimistic on the demand of semiconductor packing materials on the 2nd and 3rd Quarter of 2020.
Overall, 2020 global semiconductor revenue has been reduced from the previous quarter’s forecast by $55 billion, to $415.4 billion (see Table 1). 2020 total market growth has been reduced from 12.5% to a decline of 0.9%, with nonmemory expected to decline 6.1%, while memory is forecast to grow 13.9%.
Within memory, NAND flash revenue is forecast to grow 40% in 2020 due to severe shortages persisting from 2019, which keeps pricing firm. “NAND flash supply will remain historically low in 2020 due to fab delays and technology transitions, but the demand will diminish later in 2020, Nexteck Group forecast Initial price increases of 15.7% during the first half of 2020 will reverse to a 9.4% decline during the second half of the year.
Strong demand from cloud service providers in the first half of 2020 will push pricing and revenue higher in server DRAM. However, this growth will be more than offset by weak demand and falling prices from the smartphone market. The current impact in Semiconductor materials supply in Singapore and SEA will fade out under our internal figure in our order and logistic figures. Nexteck Singapore Pte Ltd is and will stand fast to support all our customers side by side.
