According to the company of market analysis Gartner, the worldwide turnover linked to trade of semiconductors should amount to 429 billion dollars in 2019, a decrease of 9.6% compared with 475 billion in the past year and 3.4% compared with the previous quarter. “The semiconductor market is influenced by many factors. The general fall in prices relating to the field of memories and other chip added to the trade dispute in the act between China and the United States and to reduced growth in the sectors smartphone, server and PC is doing record growth more low since 2009 on the global market of semiconductors. Product managers should review the plans of production and investment to protect themselves from this market increasingly weak” says Ben Lee, analyst, and researcher Gartner.
The oversupply in the DRAM market in 2019 will push to a fall in prices of up to 42,1 % and will extend up to the second quarter of 2020.
The decline is due to signs of a recovery slower than the demand on the part of producers hyper-scale and the increase of the levels of inventory from the part of the producer’s DRAM. “This puts an end to the longest period of insufficient supply in the DRAM industry”. Inter alia the dispute in progress between the United States and China is causing uncertainty on commercial rates. The restrictions implemented by the United States to Chinese enterprises rely on security issues and will have a long-term impact on the supply and demand of semiconductors. These problems will accelerate domestic production by the Chinese, who will try to diversify their production base to avoid further interruption. The market of the NAND is in excess of supply from the first quarter of 2018 and at this moment remains even more pronounced as the demand in the short term is weaker than expected. Always according to Lee, we expect a balance between supply and demand in 2020.