Searching for rays of hope in semiconductor market

Paul van Gerven
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After a rough first half of the year, there’s a slight sign of optimism to be found in IHS Markit’s second-quarter semiconductor market analysis: overall revenue increased ever so slightly (1 percent) Q1 into Q2. While such a sequential increase is a common seasonal pattern, at least there’s an increase among all the red numbers. In fact, the 13.9 percent decline in H1 is the worst performance since the first half of 2009, when the decline was 26.5 percent.

“It’s hard to overstate how bad things were for semiconductor suppliers in the first half,” said Ron Ellwanger, senior research analyst at IHS Markit. “Every region, almost every product category and nearly every application market suffered declines during the period. As a result, nine of the top-10 chip suppliers and 17 of the top-20 suppliers saw their revenue drop during the first six months of the year.” IHS predicts another 6 percent sequential increase in Q3, which would still be down 17 percent compared to Q3 2018.

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