NAND to see 40% growth in 2020

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Figures from Gartner suggest that the chip industry will decline 0.9% this year, although memory will grow 13.9% and NAND by over 40%.

Gartner is forecasting that the 2020 global semiconductor revenues will top $415billion and that memory will account for 30% of the total worldwide semiconductor market in 2020.

The memory market is forecast to reach $124.7 billion in 2020, up 13.9% on the year, while the non-memory revenue market is set to total $290.6 billion, representing a decline of 6.1% year over year.

NAND revenue is forecast to grow 40% in 2020 due to severe shortages persisting from 2019, which will help to keep pricing firm. Price increases of 15.7% for NAND are expected in the first half of 2020, which are then likely to reverse with a 9.4% decline in the second half..

Strong demand in the first half from cloud service providers will push pricing and revenue higher in the server DRAM market, although this growth will be offset by weak demand and falling prices from the smartphone market.

For the DRAM market overall, Gartner estimates revenue will decline 2.4% in 2020.