Global IC market revenue will decline 7.4 percent this year, according to IHS. Previously, the market research firm projected a 2.9 percent increase. “Semiconductor suppliers in early 2019 remained optimistic that they could achieve modest growth this year. However, the chipmakers’ confidence quickly transformed into apprehension as they witnessed the depth and ferocity of the current downturn. The latest data indicates the semiconductor business now is destined for its worst year in a decade,” said Myson Robles Bruce, research manager at IHS Markit.
Faced by weak demand, semiconductor inventory levels have been rising rapidly during the first quarter, according to IHS. Product segments including DRAM, NAND flash, general-purpose microcontrollers, 32-bit microcontrollers and ASICs all suffered double-digit revenue declines in the first quarter. However, IHS predicts market conditions will start to improve in the third quarter.