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IHS Markit: 5G will reverse the downturn in the semiconductor market

SemiMediaEdit
October 11, 2019

According to the latest report from market research organization IHS Markit, sales in the global semiconductor market in 2019 will be nearly 13% lower than last year, but analysts also believe that 5G is expected to reverse this.

Throughout the history of the semiconductor industry, every downturn in the market is accompanied by the arrival of technological innovation, which can always stimulate a substantial increase in market demand.

IHS Markit pointed out that in the past, the emergence of the World Wide Web and the launch of the iPhone have promoted the development of semiconductors, and 5G will once again promote technological innovation. In addition, 5G will not only affect the technology industry, but all aspects of human society will be affected, including the promotion of new economic activities, which will drive the growth of semiconductor demand.

According to IHS Markit, the downturn in global semiconductors in recent years was mainly due to the oversupply of global electronic components and the sharp drop in DRAM and NAND memory prices. However, the global semiconductor market revenue will rebound in 2020, from 422.8 billion US dollars in 2019 to 448 billion US dollars, the growth rate is expected to reach 5.9%, which will be directly attributed to 5G smartphones. Smartphones are the largest consumers of semiconductor components, and global revenues are expected to reach $87.7 billion this year.

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