Semiconductor Market shrinks by 4 Percent

At the beginning of the year, IC Insights was still forecasting growth of 8 percent for the global semiconductor market in 2020, but now analysts are expecting a minus of 4 percent.

IC Insights expects semiconductor sales to reach $345.8 billion this year, $39 billion less than originally expected. In the update of March 12, 2020, the analysts had still predicted that the semiconductor market would grow by 3 percent, because they had not expected the strong impact of the corona pandemic in the USA and Europe.

Now, market researchers estimate that GDP will shrink by at least 2.1 percent worldwide this year due to the corona crisis, which would correspond to the decline in the year of the financial crisis in 2009. Before 2009, GDP had last contracted in 1946.