Due to the Impact of COVID-19, Semiconductor Industry Expected to Contract by 0.9% This Year

[Asia Economy Reporter Changhwan Lee] Due to the impact of the novel coronavirus disease (COVID-19), the semiconductor market is expected to contract this year.

On the 12th, market research firm Gartner forecasted in a recent report that global semiconductor sales will reach $415.4 billion this year, representing a 0.9% decline compared to the previous year.

Gartner predicted that the memory semiconductor market will expand by 13.9%. However, the non-memory market, which accounts for 70% of the total semiconductor market, is expected to shrink by 6.1%.

Unlike memory semiconductors, which are limited to the two major markets of servers and mobile devices, non-memory semiconductors are widely used in all electronic products and are closely linked to the global economy.

On the other hand, the memory semiconductor market is analyzed to grow significantly due to the surge in non-face-to-face consumption caused by COVID-19.

Gartner stated that while shipments of automobiles and smartphones decreased due to the impact of COVID-19, the strong performance of memory semiconductors driven by increased demand for data centers will support the overall market.

By product, NAND flash memory among memory semiconductors is expected to grow by 40%, while DRAM is expected to decline by 2.4% due to price drops and other factors.

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