Monday, January 20, 2020

According to Gartner global semiconductor revenues down by 11.9% yearly – worse than own bleak estimates

According to preliminary results by Gartner, worldwide semiconductor revenue decreased 11.9% year over year to $418.3 billion (£321.68bn) in 2019 – with the figure surpassing the analyst firm’s already gloomy forecast from earlier within the year.

The report found that Intel has regained its position because the favorite global semiconductor vendor by revenue in 2019, beating Samsung Electronics which held the highest position in 2017 and 2018. Intel’s semiconductor revenue decreased 0.7% in 2019, driven by a slowdown within the server market, an ongoing constrained CPU supply and therefore the Q4/2019 sale of its cellular modem business to Apple, argues Gartner. Samsung dropped to the amount two position was due to the downturn within the memory market. Samsung’s memory revenue declined 34% y/y in 2019.

SK Hynix, Micron Technology, and Broadcom completed the highest five in terms of market share, albeit far behind the others; SK Hynix had 5.4% share compared with 12.5% for Samsung and 15.7% for Intel.

Gartner’s report from July had already predicted a worldwide decline in semiconductor revenue in 2019 – albeit the forecast figure was at 9.6% from 2018. Ben Lee, the senior principal research analyst at Gartner had said: “We expect that prime smartphone inventory and sluggish solid-state array demand will last for a couple of more quarters. Given the aggressive price declines for NAND, it's possible to ascertain a more balanced supply/demand outlook in 2020. However, looking further out is concerning given slowing demand drivers, like PCs and smartphones, and more capacity as new fabs in China impact the market.”

China was again cited as key to any potential recovery, consistent with Andrew Norwood, Gartner research vice chairman. “The US-China trade war seems to be easing as we enter 2020. However, during 2019 the US added several Chinese companies, including Huawei, to the entity list restricting the sale folks components,” said Norwood. “The immediate impact was to push Huawei into looking outside the US for alternative silicon suppliers.

“In 2020 we expect to ascertain semiconductor market revenue increase after the high inventory clearance to approach the chip ASP, especially within the memory sector,” Norwood added.

Additionally, Zigbee Alliance along side Apple, Amazon and Google has formed a replacement working party that focusses around ‘Project Connected Home over IP’, exploring the event and promotion of a replacement, royalty-free connectivity standard to spice up compatibility among smart home products. The project aims to form it simple for manufacturers to develop and lift the compatibility for consumers.

No comments:

Post a Comment