Semiconductor Industry Sees Big Business Opportunity in ‘Work-From-Home’: Report

  • A recent report by Gartner had forecast a downfall in overall revenues generated by the industry
  • Several companies have shifted towards work from home wave due to Covid 19 lockdown

The India Electronics and Semiconductor Association (IESA) sees a huge opportunity in the Covid 19 lockdown that the country is facing currently. A report by the Hindu Business Line mentions IESA stating that the work from home wave might increase the number if storage solutions required.

With increase in work-from-home, there will be a increase in the business of servers, data centres and computing segments. Sandeep Aurora, vice-president, Business Development and Government Affairs, IESA, was quoted saying by the daily.

Increase business in the memory-segment of semiconductors

Storage solutions, including the one used in data centers, and those in laptops and computers, are largely based on semiconductors. A recent report by Gartner had also pointed out towards the possibility of a spike in business done in the memory segment of semi-conductors.

This Gartner report has forecast non-memory semiconductor business to decline and memory forecast to grow. Semiconductor memory revenue, as per the report, will account for 30 per cent of the total worldwide semiconductor market in 2020. The memory market is forecast to reach $124.7 billion in 2020, an increase of 13.9 per cent, while the non memory revenue market is on pace to total $290.6 billion, a decline of 6.1 per cent year over year.

“NAND flash supply will remain historically low in 2020 due to fab delays and technology transitions, but the demand will diminish later in 2020. Initial price increases of 15.7 per cent during the first half of 2020 will reverse to a 9.4% decline during the second half of the year. However, average pricing levels will still enable NAND flash revenue to achieve growth this year,” stated Richard Gordon, research practice vice president at Gartner.

He added, “Non-memory semiconductor markets will experience a significant reduction in smartphone, automobile and consumer electronics production and be heavily impacted across the board.”

It is to be noted here that many semiconductor companies have already revised their business forecasts. Most of these have cited Coronavirus outbreak as the primary reason behind the same.


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