An Industry in Transition – Revolutionary Solutions Emerge
2019 will be remembered as the low point in the latest semiconductor cycle. Throughout the year companies had to adjust to weak end market demands, excess inventory thoughout the supply chain, and the transition of manufacturing into oversupply. With these three issues driving the semiconductor industry it was not surprising that most companies were faced with a year-long decline in revenue.
By the end of the 2019 every market segment was impacted. Integrated Device Manufacturers and pure play Foundries were forced to adjust manufacturing run rates downward resulting in underutilized facilities. The key question was how long would this environment last?
Fortunately, throughout 2019 the industry began to see the emergence of multiple long-term potential growth engines; 5G the next wireless technology, industrial IOT enhanced by the incorporation of AI solutions, and autonomous driving.
Looking forward into 2020 5G appears to be the most promising market driver.
The key question facing the industry is how significant will the adoption of 5G technologies become and at what pace will the adoption occur?
Of a longer term importance will be how many of these revolutionary technologies will start to deliver solutions in 2020 that will reenergize the total industry? When will the industry experience sustained growth and how long will the growth last?
IHS Markit Technology, now a part of Informa Tech will provide key insights with a forward looking perspective on the key end market solutions which will drive the resurgence for semiconductors components as well as a risk analysis on the long-term forecast.