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SEMI: Trade wars have limited impact on the semiconductor industry

SemiMediaEdit
July 5, 2019

According to media reports, SEMI CEO Ajit Manocha said at the World Economic Forum recently that the trade dispute between China and the United States has limited impact on the entire semiconductor industry.

Ajit Manocha stressed that the tariff war between the two economic powers has only played a very small role in slowing down the semiconductor industry. Due to overcapacity and other reasons, 2019 is not a very good year for the semiconductor industry, but tariffs have not really slowed down the development of the industry. The prospects for semiconductors are very optimistic.

He explained that the current slowdown in the semiconductor industry is mainly determined by memory pricing. The previous irrational price changes are being revised as the industry changes and capacity is adjusted. The memory market is expected to be back on track in 2020.

In addition, Ajit Manocha compares artificial intelligence to the next generation of oxygen in the semiconductor industry. He said that in the future, artificial intelligence will be used in many fields and will become more and more popular, and this will require more chips.

It is worth mentioning that Ajit Manocha also mentioned that in the future, the world may be more dependent on China because China has become a global leader with competitive advantages. For example, 5G and IoT applications, China and Asia Pacific currently account for about 50% of the market, and by 2025, will exceed the rest of the world.

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