WSTS dials down the chip market forecast

June 04, 2019 //By Peter Clarke
WSTS dials down the chip market forecast
The World Semiconductor Trade Statistics (WSTS) organization has reduced its forecast for the value of the global chip market in 2019 but sees a return to modest growth in 2020.

WSTS now forecasts that the worldwide semiconductor market will fall by 12.1 percent year-on-year to US$412 billion in 2019. This will be followed by growth of 5.4 percent in 2020 to take the market size to US$434 billion in 2020, still a long way behind the record year of 2018.

As recently as March of 2019 WSTS was predicting the global chip market would only fall 3 percent and with memory omitted could even show growth. US-China trade tensions have continued to escalate and cast doubt on the market in 2019.

WSTS Spring 2019 forecast summary. Note: numbers in the table are rounded to whole millions of dollars, which may cause totals by region and by product groups to differ slightly. Source: WSTS.

All markets – both geographic and component type – are expected to contract in 2019 with the exception of discrete semiconductors. The biggest faller geographically is the Americas market set to contract by a quarter. The biggest faller in terms of chip component sector is memory set to contract by 30.6 percent.

In 2020 the semiconductor will return to single-digit percentage growth across the board. In terms of component types memory will contribute the highest growth followed by optoelectronics and logic.

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