Saturday, May 25, 2019

After Three Consecutive Years of Growth, IDC Forecasts Worldwide Semiconductor Revenue to Decline by 7.2% in 2019

BWW News Desk
May 15, 2019

After three consecutive years of growth with yearoveryear growth of 132 in 2018 the latest update to the a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttp3A2F2Fwwwidccom2Fresearch2Fviewfactsheetjsp3FcontainerId3DIDCP19632ampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorSemiconductorApplicationsForecasterampindex1ampmd50d1330e037467aae3f23fe6ff07aca0d relnofollowSemiconductor Applications Forecastera SAF from International Data Corporation a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Fwwwidccomampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorIDCampindex2ampmd5094bf2df15dd60deaf7d66cf339533fd relnofollowIDCa forecasts that worldwide semiconductor revenue will decline to 440 billion in 2019 down 72 from 474 billion in 2018 The SAF also forecasts that semiconductor revenues will recover in 2020 and log a compound annual growth rate CAGR of 20 from 20182023 reaching 524 billion in 2023 pblockquotep idpullquotepblockquote p After a multiyear growth cycle of strong demand and appreciating average selling prices ASPs for DRAM and NAND the end of last year brought oversupply which will continue throughout the year and into 2020 Despite the challenging fourth quarter the DRAM and NAND memory markets grew to 99 billion and 55 billion in 2018 respectively reflecting yearoveryear growth rates of 36 and 12 for 2018 Excluding DRAM and NAND the overall semiconductor market grew by 8 year over year For 2019 nonmemory semiconductors are forecast to grow 1 to 319 billion Both DRAM and NAND are expected to decline in 2019 and 2020 p p The strong memory market resulted in Samsung Electronics retaining the top semiconductor manufacturer position and enabled memory manufacturers to be three of the top four semiconductor companies this past year Revenue concentration also continues to increase for the overall market with the top 10 companies making up 62 of the semiconductor market compared to 60 in 2017 and 56 in 2016 p p IDC expects market consolidation will begin to accelerate as the industry gets more clarity on the trade tariff dispute between China and the US So far this year there have already been six notable MampA deals announced and one large divestiture by Intel IDC expects more moves in 2020 and 2021 in the sensor connectivity automotive and AI and computer vision markets as suppliers look to drive more topline growth and improve access to new markets p p The current market downturn is being driven by a broad weakness in demand specifically centered in China and an ingestion of excess inventories in some of the major markets including automotive mobile phones and cloud infrastructure said a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Fwwwidccom2Fgetdocjsp3FcontainerId3DPRF000268ampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorMarioMoralesampindex3ampmd58012c06e503fabee9f19c6404591c2d8 relnofollowMario Moralesa program vice president Semiconductors at IDC We expect the market to bottom by end of the third quarter this year as we work through inventories and demand begins to gradually return Cloud infrastructure investment 5G mobile devices WiFi 6 adoption Smart NICs automotive sensors powertrain technologies AI training accelerators and edge inference SoCs will be instrumental in our growth expectations for 2020 and beyond p p In 2018 the automotive market and the industrial markets excluding memory grew at 48 and 78 respectively While electrification infotainment and advanced driving features are increasing semiconductor content per automobile the decline in automobile unit sales in 2018 lowered overall growth in automotive semiconductors Economic deceleration and declining vehicle sales will continue to put pressure on the automotive semiconductor market throughout this year said a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttp3A2F2Fwwwidccom2Fgetdocjsp3FcontainerId3DPRF004189ampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorNinaTurnerampindex4ampmd5595b42c7092ec6a2d794d7799ee789ad relnofollowNina Turnera research manager for Semiconductors at IDC However our longterm thesis remains intact The automotive market remains one of the strong growth drivers over the forecast horizon as semiconductor content and design activity for autonomous enabling technologies will continue to drive 34 times more growth than the overall market p p Other key findings from IDCs Semiconductor Application Forecaster excluding memory include p ul li classbwlistitemmargb While the computing industry experienced strong growth in 2017 and 2018 the SAF forecasts semiconductor revenue for the computing industry segment to decline 51 this year but will show a positive CAGR of 13 for the 20182023 forecast period Two bright spots for the computing segment are x86 servers and SSDs growing with an 113 and 98 CAGR respectively for 20182023 li li classbwlistitemmargb Semiconductor revenue for the mobile wireless communications segment will grow 18 year over year this year with a CAGR of 48 for 20182023 Semiconductor revenue for 4G mobile phones will experience a slowdown as 5G phones begin to ramp up in 2020 becoming mainstream by the middle of the next decade RF subsystem in mobile devices will continue to drive the majority of the revenue growth as the subsystem continues to support more complexity additional antennas and the increase in bands on every phone li li classbwlistitemmargb The consumer semiconductor segment will grow at a 64 CAGR for 20182023 as consumer IoT devices and home automation continue to gain traction and scale Connected devices will continue to drive more sensors and processing at the edge li ul p Additional information can be found at IDCcom p p The IDC report a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Fwwwidccom2Fgetdocjsp3FcontainerId3DUS44944719ampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorWorldwideServerDRAMDIMMbyWorkloadForecast2C2019E280932023ampindex5ampmd5391ade9bf36bf0c45093bc041341250b relnofollowiWorldwide Server DRAM DIMM by Workload Forecast 20192023iai iIDC US44944719 provides an outlook for the server DRAM DIMM market for the 20182023 period p p The IDC presentation a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Fwwwidccom2Fgetdocjsp3FcontainerId3DUS44919519ampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorWorldwideMemoryDemandandSupply4Q18E280934Q19and2019E280932023Updateampindex6ampmd5782aeaa44055b9007bd94f6e8081cfcd relnofollowiWorldwide Memory Demand and Supply 4Q184Q19 and 20192023 Updateiai iIDC US44919519 provides the 4Q18 memory DRAM and NAND vendor share results and forecasts for both the shortterm 4Q184Q19 and the longterm 20192023 worldwide memory market p p The IDC pivot table a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Fwwwidccom2Fgetdocjsp3FcontainerId3DUS44988319ampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorWorldwideMobileConnectivityForecastPivotTableampindex7ampmd54cd870e857ccbaea91ebe5032a300b35 relnofollowiWorldwide Mobile Connectivity Forecast Pivot Tableia IDC US44988319 includes the yearly data for mobile connectivity for the 20052023 period This document looks at all the products that incorporate mobile connectivity from the perspective of silicon suppliers p p The IDC pivot table a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Fwwwidccom2Fgetdocjsp3FcontainerId3DUS43824719ampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorWorldwideMobilePhoneandTabletApplicationProcessorMarketShares2C4Q18ampindex8ampmd5d6f836332ddbbe32dc325e3e134f81ef relnofollowiWorldwide Mobile Phone and Tablet Application Processor Market Shares 4Q18iai iIDC US43824719 provides 4Q18 data for application processors in mobile phones and tablets p p IDCs a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttp3A2F2Fwwwidccom2Fresearch2Fviewfactsheetjsp3FcontainerId3DIDCP19632ampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorWorldwideSemiconductorApplicationsForecasterampindex9ampmd54eee87ebd931174213758337ac17d31a relnofollowWorldwide Semiconductor Applications Forecastera database serves as the basis for IDC semiconductor supplyside documents including market forecasts and consulting projects This database contains revenue data collected from over 150 of the top semiconductor companies for 20152018 and market history and forecasts for 20142023 Revenue for over twelve semiconductor device areas four geographic regions seven industries and more than 65 enddevice applications are also included in the database p p For more information about the SAF please contact Nina Turner at a referrerpolicyunsafeurl targetblank hrefmailtonturneridccom relnofollownturneridccoma p p bAbout IDCbbrInternational Data Corporation IDC is the premier global provider of market intelligence advisory services and events for the information technology telecommunications and consumer technology markets With more than 1100 analysts worldwide IDC offers global regional and local expertise on technology and industry opportunities and trends in over 110 countries IDCs analysis and insight helps IT professionals business executives and the investment community to make factbased technology decisions and to achieve their key business objectives Founded in 1964 IDC is a whollyowned subsidiary of International Data Group a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttp3A2F2Fwwwidgcomampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorIDGampindex10ampmd56ebd5fbe83712b2fc3d2c3c9c70a31fe relnofollowIDGa the worlds leading media data and marketing services company that activates and engages the most influential technology buyers To learn more about IDC please visit a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttp3A2F2Fwwwidccomampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorwwwidccomampindex11ampmd5b6d08f0a72b2d68dde35fceae0f3ad51 relnofollowwwwidccoma Follow IDC on Twitter at a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Ftwittercom2FIDCampesheet51985564ampnewsitemid20190515005910amplanenUSampanchor40IDCampindex12ampmd5834f8e97481894d61a394b93f3c7cbca relnofollowIDCa and a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Fwwwlinkedincom2Fcompany2FIDCampesheet51985564ampnewsitemid20190515005910amplanenUSampanchorLinkedInampindex13ampmd5f5bc26a81cbc33f2633eb21fffbb800e relnofollowLinkedIna p p p pimg referrerpolicyunsafeurl alt srchttpsctsbusinesswirecomctCTidbwnewsampsty20190515005910r1ampsidweb02ampdistronxamplangen stylewidth0height0span classbwct31415p

SOURCE: BUSINESS WIRE. ©2015 Business Wire

Comments

Registration Login
Registration Login
Registration Login
Registration