Omdia Cuts Global Semiconductor Forecast
Omdia slashed forecasts for the worldwide semiconductor market Thursday, predicting a 2.5% rise in revenue to $439.9 billion vs. previous projections of 5.5% growth. The market for wireless equipment market is seen falling by 4.7% from 2019; wireless chip sales…
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are seen dropping to 2% from 4.8%. As of March, Omdia expects smartphone shipments to reach 1.2 billion units for the year. Automotive will be a “major drag” on the semiconductor market, with 2020 vehicle production expected to decline by 12.4%, resulting in a 7.5% drop for automotive semiconductors. The ramifications of the coronavirus on the global economy “have come into sharper focus,” said analyst Myson Robles-Bruce. The pandemic has disrupted supply chains and market demand across all component categories, he said, with Japan “already in recession” and the U.S. and Europe expected to enter recessions this quarter. A bright spot is the industrial semiconductor market, seen expanding by 2.5% this year, driven by the medical sector, where chip demand is forecast to grow 5.9%. “COVID-19 is causing rapid reallocation of priorities and funding in the medical sector,” Robles-Bruce said, citing a demand increase for ventilators and surgical supplies, and a boost in telehealth for virtual doctor visits.