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BusinessKorea: Chip makers expected to cut supply significantly

SemiMediaEdit
March 30, 2020

According to BusinessKorea, as the COVID-19 pandemic continues to spread, the market demand for smartphones and personal computers will show a certain decline. Based on this, chip makers are expected to significantly reduce supply.

Shinhan Investment stated that in view of the pandemic of COVID-19, the company further reduced its forecast for growth in demand for IT products. Among them, the growth in demand for smartphones was reduced from -7% to -15% and for personal computers from -4% to -7%. However, due to strong demand for remote work and rising data center traffic, Shinhan's forecast for server chip demand remains unchanged.

In the face of a slowing market demand, Shinhan Investment said that the shrinking demand has caused chip makers to believe that there is no reason to stick to the original capital expenditure and supply plan. In this case, reducing supply is inevitable.

At the same time, Shinhan Investment believes that the current semiconductor market will continue to rise, but due to the outbreak of the COVID-19 pandemic, the recovery of the DRAM market will be slower than expected.

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