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2020 chip market to be 0.9% down, says Gartner
2020-04-17

    “Oversupply in the DRAM market helped push the overall memory market down 32.7% 2019. The memory market accounted for 26.1% of semiconductor sales in 2019 and was the worst-performing device segment,” says Gartner vo  Andrew Norwood, “the U.S.-China trade war distorted sales throughout the year and was an additional headwind to revenue growth for the overall global semiconductor market. During 2019, this brewing trade war seemed the most imminent danger to the world economy, but with the current spread of the COVID-19 virus, trade wars seem a minor issue in comparison.”

    Intel regained the No. 1 position in the market as the downturn in the memory market negatively impacted many of the top vendors, including Samsung Electronics, the No. 1 vendor by revenue in 2018 and 2017 (see Table 1).

Table 1. Top 10 Semiconductor Vendors by Revenue, Worldwide, 2019 (Millions of U.S. Dollars)

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    Within the memory segment, NAND flash suffered its worst sales contraction in its history with 2019 revenue declining 26.4% due to elevated levels of inventory at the end of 2018 and sluggish demand in the first half of 2019.

    Weak demand from smartphone and hyperscale cloud service providers drove down prices and forced nearly all vendors to pull back on existing fab plans or, in some cases, cut wafer starts to levels below 2018.

    The NAND market began to stabilize in July 2019 when a power outage in the fabs jointly owned by KIOXIA and Western Digital acted as a catalyst to reduce vendor inventories and prompted prices to increase from unsustainable lower levels.

    Performance in other device categories was mixed as analog products declined 5.1% in 2019 and the optoelectronics segment grew 6.6% in 2019.

    Analogue components, which normally closely track the overall semiconductor market, experienced a decline due to weak end-equipment markets, especially industrial and legacy automotive.

    Optoelectronics recorded the best performance of any device category due to the increasing number of cameras in smartphones.


FROM :electronicsweekly

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