© IC Insights Components | July 16, 2020
1Q/4Q: Signals show rebound in the 2020 IC market
After dropping by 15% last year, the worldwide IC market is expected to show single-digit growth in 2020, even with the disastrous effects of Covid-19 on the global economy.
From 1984-2019, the average seasonal sequential decline in the 1Q IC market was 2%. In 1Q20, the IC market was down just 3% as compared to 4Q19, slightly below the 36-year average. Excluding the years after the severe IC industry downturns of 1985 and 2001, IC Insights believes that the 1Q/4Q sequential quarterly IC market change is a good indicator of the direction and intensity of the annual IC market change, writes IC Insights in their lates market research report. Note that Figure 1 is labeled as a “direction indicator.” This is because the actual 1Q/4Q change does not directly forecast the eventual annual IC market growth for a given year, but instead more accurately describes the expected direction and intensity of the annual IC market growth rate as compared to the previous year. For example, 2017 showed 0% 1Q/4Q growth and 25% annual IC market growth, whereas 2011 displayed 1% 1Q/4Q growth but a full year IC market growth rate of only 1%, the difference being the 1Q/4Q change as compared to the previous year’s 1Q/4Q change. The reason why this model is a good indicator of the direction of the IC industry’s annual growth rate lies in the seasonality of the IC market itself. Given the typical quarterly seasonal pattern that is characteristic of the IC industry, the first quarter essentially establishes a “base” upon which future quarterly IC market growth will build. Overall, when the 1Q/4Q performance of a given year is better than the previous year’s 1Q/4Q result, the annual growth rate for that year can be expected to be better than the previous year. The opposite is usually true when the 1Q/4Q performance of the current year is worse than the year earlier. Since the 1Q20/4Q19 IC market change of -3% was much better than the 1Q19/4Q18 IC market change of -17%, IC Insights believes that the annual growth rate for the 2020 IC market, even after incorporating the negative impact of Covid-19, is likely to be much better (3%) than the 15% decline the IC market registered in 2019. In the original 2020 McClean Report (released in January before any mention of Covid-19), IC Insights forecast a 1Q20/4Q19 IC market decline of 5% and a full-year 2020 IC market increase of 8%. With the 1Q20/4Q19 IC market registering only a 3% decline, excluding the now known severe damage of Covid-19 on the global economy, IC Insights would most likely have raised its full-year 2020 IC market forecast from 8% growth to 10% or greater.
TSMC's looking to expand with new chip plant in Japan During an online earnings briefing, TSMC CEO C. C. Wei, announced the company's intention to build a specialty technology fab in Japan.
Bosch to set up R&D centre for automotive electronics in Ireland The German engineering and technology company has announced that it will establish an automotive R&D centre in Limerick, Ireland, creating over 30 new jobs over the course of the next two year.
Sponsored content by Shenzen Kinwong ElectronicThe development trend of printed circuit board products and Kinwong's solution With the rapid development of electronic technology in recent years, printed circuit board (PCB) products are pursuing higher heat dissipation capabilities, with high voltage and high current characteristics, and are developing towards high-density interconnection technology (HDI).
RFMW and CML Microcircuits ink global distribution agreement RFMW and CML Microcircuits (USA) Inc. announces that the companies are expanding their business relationship. Their existing distribution agreement has now been widened to include global marketing and sales of the CML product portfolio.
New Yorker Electronics acquires Omni-Pro Franchised distributor of passive electronic components and discrete semiconductors, New Yorker Electronics, announces that it has acquired Omni Pro Electronics, Inc., an electronic component distributor, located in Addison, Texas.
Pepperl+Fuchs adds to its capacity with a new facility Pepperl+Fuchs has officially opened its new production site in Trutnov, Czech Republic. This marks the conclusion of a project which started in 2019 and will allow the company to strengthen its position as a producer of industrial sensors.
RISC-V player announces expansion of US operation Andes Technology USA Corp., the HQ of the North America operations of Taiwan-based Andes Technology Corporation, a supplier a RISC-V processor cores, is planning a major expansion of Its US operation.
Sponsored content by Nordson ELECTRONICS SOLUTIONSThere’s a better way to dispense thermal gap filler. We hear a lot about the advancement, properties, and use of dispensable thermal interface materials (TIM) to keep devices cool. But what about the dispensing process? If you're choosing a dispensable thermal gap filler for your application, download our new guide.
NXP Semiconductors names new CFO NXP Semiconductors announces that the company names Bill Betz has been named NXP’s Executive Vice President and Chief Financial Officer, effective immediately.
GlobalWafers / Siltronic deal gets a green light from the US GlobalWafers has provided an update regarding its ts all-cash tender offer for the outstanding ordinary shares of Siltronic AG.
Samsung starts mass production of its 14nm EUV DDR5 DRAM Samsung Electronics says that it has begun mass producing its 14-nanometer DRAM, based on extreme ultraviolet (EUV) technology.
Schurter completes its latest Swiss expansion The new construction and conversion of the Schurter Group headquarters in Lucerne, Switzerland has been completed.
Sponsored content by congatec GmbHReal-time Ethernet for all The real-time processing of data for OPC UA, as well as many other tactile Internet applications, are coming up fast as important new areas of industrial communication. This is due in large part to the emergence of 5G technologies and the increase in factories installing 10+ GbE networks. The stranglehold that many established proprietary industrial Ethernet installations have had for so many years is now starting to be released by Time-Sensitive Networking (TSN), which is ushering in these real-time applications.
UK is off the table for potential Intel fab after Brexit The UK would have been a potential site for an Intel fab, but not after Brexit, Intel CEO Pat Gelsinger told the BBC.
Solution from Fingerprint Cards integrated in new Honor MagicBook Swedish biometrics company, Fingerprint Cards, announces that the the company’s new biometric solution for the PC market is integrated in the new HONOR MagicBook V14.
Kanthal sells its semiconductor capital equipment business Heating technology company Kanthal announces that it has reached an agreement to divest its semiconductor capital equipment business to Yield Engineering Systems, Inc. (YES), headquartered in Fremont, California, USA.
GaN power IC supplier opens new office in China Navitas Semiconductor, a provider of gallium nitride (GaN) power ICs, has opened a new office in Shenzhen, China which offers the company 300% increase in capabilities to support revenue growth in the region.
Generating very low voltages with standard regulators Question: What is a good solution for generating a tiny dc supply voltage of a few hundred millivolts?
SiPearl opens new design center in France Microprocessor designer SiPearl has opened yet another European design center, this time in Grenoble, France.
Infineon plans to increase investments by 50% next year The German chip manufacturer has provided its investors with an update on its strategy, business performance and long-term perspective as well as on the outlook for the fiscal year 2022.
HEICO subsidiary acquires specialised electronics company HEICO Corporation's dB Control subsidiary has acquired 100% of Paciwave, Inc. The RF and microwave specialist is HEICO's 6th acquisition this year.
TI might not be done with Sherman Early last year the news that Texas Instruments disclosed that it planned to close two wafer plants within three to five years. The plants in question were two 50+ year old factories, located in Dallas and Sherman. But TI might not be done with Sherman just yet, the city is a finalist for a new multi-billion dollar production plant.
Business is booming for Flip - Moves into expanded location Flip Electronics has had major success and growth in the last five years. So much so that the authorised distributor of obsolete and excess semiconductor and electronic components recently moved from a 12,000 square feet facility to a new one which provides the company with a total of73,000 square feet.
Marvell completes its acquisition of Innovium The provider of infrastructure semiconductor solutions has completed its acquisition of Innovium, Inc.,and thus broaden its portfolio of silicon solutions targeting cloud data centers.
Cree is no more - welcome Wolfspeed Following a massive four-year transformation, involving the divestiture of two-thirds of the business and a repositioning of the company’s overall core strategy, the company formerly known as Cree is now officially Wolfspeed.
US semiconductor distributor opens office in Germany Smith, a global distributor of electronic components and semiconductors, today announces the opening of its sales office in Berlin, Germany.
Qualcomm and SSW Partners win the battle for Veoneer Qualcomm Incorporated and investment firm SSW Partners, have reached a definitive agreement to acquire Veoneer, Inc. for USD 37.00 per share in an all-cash transaction, representing a total equity value for Veoneer of USD 4.5 billion.Load more news