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Home » Market Update » How will “looming recession” affect semicon industry?

EETimes dives into the broad question of how badly hit is the global economy and the effects this will have on the semiconductor market with help from French technology market analysers, Yole.

“One question looms large in the minds of many semiconductor vendors: How long will it take for global market demand to recover and for the supply chain to revive?” asks EETimes

According to Yole, the semiconductor industry is weathering the pandemic thus far with many devices showing little or no impact from the Covid-19 fallout.

Source: EETimes / Copyright Yole Développement

However, as Yole points out, the double shocks on both demand and supply chains have “is forcing everyone into uncharted territory in the global market”.

Source: EETimes / Copyright Yole Développement

“The triggers for an erosion of the global economy — happening pretty much simultaneously — are a U.S.-China trade war launched in January 2018, the oil price shock triggered by Russia and Saudi Arabia in the first quarter of 2020, a general or partial lockdown that has progressively swept the world since January, and a historic recession begun in the second quarter of 2020,” writes EETimes.

Source: EETimes / Copyright Yole Développement

EETimes writes, “We’ve heard from economists who draw the shape of the Covid-19 recession as a V, U, W or L. This alphabet soup proves just one conclusion: nobody really knows.”

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