Covid-19 Set To Hit Worldwide Semiconductor Market In 2020
SAN FRANCISCO: The coronavirus disease 2019 is seriously affecting the worldwide semiconductor business, which is expected to take a hit of US$25.8 billion.
In addition to the human cost, the impact of the virus on the global economy is only beginning to be appreciated and has deep implications for the world’s technology supply chain, according to a new report from IDC dubbed Impact of COVID-19 on the Worldwide Semiconductor Market Forecast.
“The emergence of COVID-19 has brought with it travel bans and quarantines; massive slowing of the supply chain; uncertainty in the stockmarket; falling business confidence, and growing panic among the population,” said Mario Morales, program veep at IDC.
He added: “Despite the growing uncertainty and panic, technology suppliers must continue to focus on their long-term investments, maintain engagement with partners and prospects, and look to specific markets for stability. Emerging technologies like 5G, the Internet of Things, high-performance computing and intelligent edge will be fundamental to an overall recovery by the technology sector.”
Looking ahead, the report flags an 80 percent chance for significant contraction in worldwide semiconductor revenues in 2020, instead of a previously expected minor overall growth of two percent.