Memory and embedded chip boost for 2020 post Covid-19

August 10, 2020 //By Peter Clarke
How the pandemic will affect 33 chip product categories in 2020
The Covid-19 pandemic will hit annual sales in 25 of 33 IC product categories in 2020 but has boosted memory and embedded microcontroller shipments, says IC Insights.

The exceptional turnaround in the market for NAND flash memories and a forecast year-on-year market growth of 27 percent, the overall IC market will show 3 percent growth, the market researcher predicts.

The 33 IC product categories are those defined by the World Semiconductor Trade Statistics organization (WSTS).

NAND flash, DRAM, computer CPU, and embedded MPUs show improvement for 2020, although the firm states that both consumers and businesses are moving forward cautiously with system purchases.

The July-September quarter of each year is usually the strongest for IC sales growth as consumer electronics manufacturers fill supply chains and then make equipment for sales in November through February.  This has become a consumer buying season starting with Black Friday sales the day after Thanksgiving and extending through Christmas and Chinese New Year holidays the following January or February.

However, this year due to Covid-19 the third quarter could be flat with the second quarter as vendors cope with inflated inventories and dropping demand.

Next: Gainers and losers in 33 product categories

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