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Memory Companies Muting Semiconductor Equipment Growth in 2020 Says The Information Network

Shahina Khatun

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On the heels of the 14% growth in the semiconductor equipment in 2018, the market now is predicted to drop down to 17% in this year 2019. According to the report provided by The Global Semiconductor Equipment: Markets, Market Shares, Market Forecasts, the budget can drop to $54billion. The report has been published recently by The Information Network which is a New Tripoli and PA based market research company.

The revenues for them were decreasing day by day from 2018. For the initial six months, January to June, the revenues were around $27.1 billion which is down to 19.7% from the same time in the previous year, 2018.

This devastating reduction in the equipment revenues this year is heavily associated with the reduction in the capital expenditures by those memory chip companies. The memory chip companies are expected to reduce at 28% for the entire year comparing to the last year 2018. They can even drop another 5% in the following year (2020).

Dr. Robert Castellano, who is the President of The Information Network said that the memory market had been in the period of oversupply across the entire 2019. Moreover, the prices of the chip also had started reducing and even the memory manufacturers like Micron Technology, SK Hynix and the Samsung Electronics had cut back the investments in the equipment processing as well as in the plant construction. Robert Castellano added that as days of the inventory had dropped for the memory chip companies and as the prices of chips had stopped from dropping, and as the demand from the 5G and cloud server companies continued, they expected a memory capex to drop just 5% in 2020.

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