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COVID-19 to significantly impact semiconductor market in 2020

A report from IDC suggests that there will be a significant impact on the semiconductor market as a result of the COVID-19 virus.

The report provides four scenarios based on the possible extent and length of the crisis. In the worst case, we could see a contraction of over 12 per cent, while in a best case scenario, a rapid recovery and growth of around 6 per cent is being forecast.

IDC believes that the most likely outcome will be a fall in revenue growth of 6 per cent, but this is dependent on the supply chain showing signs of recovery over the summer.

While acknowledging that it is too soon to be able to accurately chart what may or may not happen going forward, the report urges technology suppliers 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, and the report concludes that when recovery sets in we can expect to see a strong return to growth.

Author
Neil Tyler

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