McKinsey: Chip demand to fall 5-15 percent this year

Consultancy firm McKinsey predicts global chip demand will take a big drop this year due to the coronavirus pandemic. Based on current parameters and expectations, McKinsey believes chip demand will be 5 to 15 percent lower in 2020 than the previous year:

The range of McKinsey’s projection — 5 to 15 percent — is particularly wide, but perhaps understandably so. The Covid-19 outbreak is so unprecedented in the global economy that experts can’t draw on past crises to measure its potential impact on business. The 2008-2009 Global Financial Crisis, for example, offers few lessons. The trigger for that was the sub-prime mortgage crisis, which was almost exclusively financial in nature. The world’s current problems are different and far more complex, with a pandemic leading to business shutdowns that have induced a shock to global supply and demand, which in turn is damaging the global economy.

The biggest drops are expected in the automotive and wireless communication chip markets. Wired communication chips on the other hand are expected to see a big demand increase, as this includes chips needed to boost capacity at at businesses, Internet service providers, streaming services, cloud providers, etc.



Via: EE Times