IC Insights released the latest report that due to the Covid-19 pandemic and strained U.S./China trade relations, most IC suppliers had weak demand in the first half of this year and generally poor sales performance.

However, IC Insights reported in the August update of the 2020 McClean Report that some major IC suppliers believe that better results will be achieved in the second half of this year. In addition, IC Insights cites the second half guidance and full year outlook of three leading integrated circuit companies.

IC Insights pointed out that TSMC is by far the world's largest  semiconductor foundry in the world and is a critical supplier of 7/5nm application processor devices. The figure below shows an updated outlook at TSMC’s 2020 sales forecast given its actual 1H20 results. As shown, while the company expects its fullyear sales “to grow above 20%” this year, IC Insights believes its 2H20/1H20 sales will increase by 8%, yielding a full-year jump of 24% for TSMC.

Leading IC suppliers are optimistic about 2H20 growth expectations-SemiMedia

There is no doubt that Apple’s need for leading-edge application processors will be a driving force in this growth. In the second half of 2020, TSMC reported that it shipped its one-billionth 7nm IC and expects to be in high volume production of devices manufactured using its 5nm process technology. In total, the company expects about $3.5 billion in revenue come from its 5nm shipments in 2H20, representing 8% of its total sales in 2020.

Leading IC suppliers are optimistic about 2H20 growth expectations-SemiMedia

IC Insight also pointed out that ST, the world's fourth-largest analog IC supplier and major automotive device manufacturer, has big hopes for 2H20. After a precipitous drop of 19% in 1H20/2H19, the company expects a strong 19% jump in its 2H20/1H20 sales. The company’s jump in sales in the second half of this year is forecast to be driven by a rebound in the automotive sector from a exceptionally weak 1H20 and a increase in demand from the industrial segment of the market as the global economy displays some stability from a disastrous first half of this year. However, even after a strong 2H20, ST’s total semiconductor sales are expected to be down 1% this year.