World Semiconductor Trade Statistics (WSTS) has lowered its forecast for this year’s semiconductor market growth rate.
WSTS said it expected worldwide semiconductor market to grow 3.3% year over year to US$426 billion in 2020. It expected a growth rate of 5.9% in an earlier forecast published in December.
However, memory semiconductor market is expected to grow 15% from from a year ago to US$136 billion. Its forecast in December estimated a 4.1% growth.
The adjustments likely take COVID-19 pandemic into account.
Demand from servers offset the decline in smartphones, while supply has been limited, which increased the price.
Meanwhile, WSTS expects a 6.2% growth in 2021.
Other research firms have also lowered their projection earlier. Gartner lowered its growth rate estimate to -0.9% in March from its earlier estimate of 12.5%. IC Insights also lowered its to -4% from 8%.