Hana Research "Semiconductors Also Affected by COVID-19... Negative Impact on Memory Prices"

[Asia Economy Reporter Kwon Haeyoung] Concerns are rising that the semiconductor industry has also entered the influence zone of the novel coronavirus infection (COVID-19) as shutdowns of some semiconductor equipment companies in the US and Europe have become a reality.

On the 28th, Hana Financial Management Research Institute stated, "The fundamentals of the semiconductor market, such as production and demand, remain stable, but price, export, and inventory indicators have not yet reflected the impact of COVID-19," adding, "Concerns about the indicators to be announced at the end of March still exist."

Global semiconductor shipments recorded positive growth for two consecutive months, supported by growth in the US market. Domestic semiconductor exports also turned positive in February for the first time after 14 consecutive months of decline and maintained positive figures until the 20th of March.

However, due to the spread of COVID-19, some equipment companies have suspended factory operations. US semiconductor equipment company Lam Research halted operations at its Fremont and Livermore plants for three weeks starting on the 17th in accordance with government guidelines. Dutch equipment company ASML recommended sequential remote work for about 10,000 employees, and US Applied Materials (AMAT) also initiated remote standby for personnel at its California headquarters.

The research institute pointed out, "Shutdowns of some equipment companies due to the spread of COVID-19 have become a reality, and Japanese material companies are also a concern following the decision to postpone the Olympics." It further analyzed, "If global semiconductor demand contracts, chip manufacturers may reduce production partially to lower inventory," adding, "This could negatively affect the memory price trends that are currently confirming a bottom."

This content was produced with the assistance of AI translation services.