A new IDC (International Data Corporation) report has revealed the potential impact of COVID-19 on the semiconductor market, with some startling conclusions.
The IDC Worldwide Semiconductor Market Forecast (IDC #US46115520) evaluates the global disruption to the economy and technology demand in four different scenarios:
- Decline -12% or greater: predicts 9-12+ months disruption
- Decline -3 to -6%: predicts 3-9 months disruption
- Growth +2%: predicts 3-9 months disruption
- Growth +6% or greater: predicts 1-3 months disruption
The report also concludes:
- There is nearly an 80% chance for significant contraction in worldwide semiconductor revenues in 2020, instead of a previously expected minor overall growth of 2%.
- There is still a one-in-five chance that a fast, strong bounce back from COVID-19 in 2020 is possible.
Mario Morales, Program VP, Semiconductors and Enabling Technologies at IDC, said that although the emergence of COVID-19 has brought with it “massive slowing of the supply chain” and “growing panic among the population” he reminded technology suppliers to “focus on their long-term investments, maintain engagement with partners and prospects, and look to specific markets for stability”.