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Semiconductor industry is in a downturn and will rebound next year

SemiMediaEdit
October 21, 2019

TrendForce released a report last week, predicting that the semiconductor industry will experience the biggest recession in 10 years this year, with an estimated annual output reduction of about 13%. Looking forward to next year, with the continued growth in demand for 5G, artificial intelligence and automobiles, and driven by emerging applications, the semiconductor industry will gradually emerge from the bottom.

In the case of AI, all major mobile phone chip suppliers are focusing on AI computing performance, so the key point for next year's winning will depend on the performance capabilities of the AI acceleration units of major chip manufacturers. For example, MediaTek's APU, Qualcomm's DSP, and Huawei's Da Vinci's performance in AI and execution efficiency.

In addition, TrendForce pointed out that the global mobile phone market has entered a mature stage, and the application of 5G mobile phones will intensify the competition of chip manufacturers. Based on this, acquisition and investment will become necessary means to enhance the competitiveness of chip solutions.

TrendForce said that overall, relevant manufacturers are working hard to speed up the development of advanced processes, product scheduling is gradually clear, and is expected to continue to drive industry development and stimulate demand.

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