COVID-19-Induced Smartphone Slump Leads to Consecutive Semiconductor Contraction Forecasts

[Asia Economy Reporter Changhwan Lee] Due to the spread of the novel coronavirus infection (COVID-19), sluggish smartphone sales have led to continuous forecasts of semiconductor market contraction.

On the 9th, market research firm IDC recently projected that the semiconductor market will shrink by 4.2% this year.

In this report, IDC predicted that excluding memory semiconductors such as DRAM and NAND flash, the semiconductor market will contract by 7.2%.

This is because the demand for smartphone semiconductors has generally weakened due to sluggish smartphone sales caused by COVID-19.

According to market research firm Counterpoint Research, the smartphone market size in the first quarter of this year decreased by 13% compared to the same period last year. The decline is expected to increase in the second quarter as sluggishness continues in the US, India, and Europe.

Earlier, IDC predicted that the semiconductor market could plunge by 12% compared to last year in the worst-case scenario, but if a rapid recovery is assumed, a 6% growth is also possible.

Another market research firm, Omdia, also lowered its semiconductor market forecast for this year from 5.5% growth to 2.5% growth. Excluding memory semiconductors, it is expected to contract by 5%.

Last month, Gartner also predicted that semiconductor sales would decline by 0.9% this year, and IC Insights forecasted a 4% contraction for this year.

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