Dramatic chip downturn approaching says report : Page 2 of 2

May 06, 2019 //By Julien Happich
Conditions in the global semiconductor market have deteriorated rapidly since the start of the year, with IHS Markit cutting its 2019 growth outlook by more than 10 percentage points.
In the NAND flash memory space continued oversupply has been responsible for an aggressive erosion in pricing.

Another segment set for steep decline this year is the logic application-specific standard product (ASSP) where demand is driven by the mobile handset business, a market that is struggling to generate due to nearly universal saturation.

A silicon silver lining
According to IHS Markit, the challenging conditions in the semiconductor market will linger through the second quarter. The sharp downturn in the first half of the year have set the chip market on a course for its worst revenue performance since 2009, however, IHS Markit Technology forecasts a recovery in semiconductor sales in the third quarter. This revival will be led by NAND flash memory parts used in solid-state drives and high-end smartphones. MPUs employed in notebook PCs and datacenter servers also will help drive a resumption of overall semiconductor sales growth.

IHS Markit - www.ihsmarkit.com

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