Global Semiconductor Revenue to Decline 9.6% in 2019

Monday, July 22, 2019
Print Print Email Email
News Content Image

The ongoing trade dispute between the US and China has affected semiconductor supply and demand and as a result, the worldwide semiconductor revenue is forecast to total $429 billion in 2019 -- a decline of 9.6 per cent from $475 billion in 2018, Gartner said on Monday.

A demand-driven oversupply in the DRAM market will push pricing down 42.1 per cent in 2019 and the oversupply is expected to extend through the second quarter of 2020. 

The decline is owing to signs of a slower demand recovery at the hyperscale vendors and the increasing inventory levels of DRAM vendors. This ends the longest period of undersupply seen in the DRAM industry, said the report.

"A weaker pricing environment for memory and some other chips types combined with the US-China trade dispute and lower growth in major applications, including smartphones, servers and PCs, is driving the global semiconductor market to its lowest growth since 2009," said Ben Lee, senior principal research analyst at Gartner. 

The global NAND market has been in oversupply since the first quarter of 2018 and is now more pronounced as the near-term demand for NAND is weaker than expected.

"We expect that high smartphone inventory and sluggish solid-state array demand will last for a few more quarters," added Lee. 

Given the aggressive price declines for NAND, it is possible to see a more balanced supply/demand outlook in 2020, said the report.

Read More News:

India's R&D Spending Remains 0.7% of GDP in Decade

Wipro Net Rises 12.6% in First Quarter

Source: IANS
Looking For Loan? Let us Help you !!!
Loan Amount
Annual Income
Preferred banks
Type the characters you see in the picture
90% of developing economies
Ninety per cent of developing economies, including India are falling behind or are at risk of fall..
Brookfield to buy RIL E-W Pipeline
Canadian investor Brookfield has acquired the loss-making East-West Pipeline Ltd from Mukesh Amba..
Banks need to raise own capital
Public Sector Banks (PSBs) may raise capital themselves to meet regulatory and growth ..
Bharti Airtel board approves
Telecom major Bharti Airtel on Thursday said its board of directors has approved fund raising ..