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FEBRUARY 2020        TAP TIMES         -13-          “In 2020, we expect to see semiconduc-
                                                                tor market revenue increase after the high
                Revenue decline (from 12)                       inventory clearance to drive up the chip
                                                                ASP, especially in the memory sector,” said
        Samsung’s memory revenue, which ac-                     Norwood.
        counted for 82% of its sales, declined 34%
        in 2019.                                                “The U.S.-China trade war seems to be
                                                                easing as we move into 2020. However,
                                                                during 2019 the U.S. added several Chi-

        Milder turndown for NAND                                nese companies, including Huawei, to the
        Within the memory segment, NAND flash                   Entity List restricting the sale of U.S. com-
        experienced a milder 2019 downturn than                 ponents.
        the overall memory market, with a rev-
        enue decline of 23.1% due to elevated
        levels of inventory at the end of 2018 that             Alternative silicon suppliers
        were exacerbated by sluggish demand in                  The immediate impact was to push Huawei
        the first half of 2019.                                 into looking outside the U.S. for alterna-
                                                                tive silicon suppliers, with wholly owned
        The NAND market began to stabilize in                   HiSilicon at the top of the list as well as
        July 2019, aided by a power outage in the               alternative suppliers based in Japan, Tai-
        fabs jointly owned by KIOXIA and Western                wan, South Korea and China. This will be
        Digital.                                                an area to watch in 2020.”
        This power outage acted as a catalyst to
        clean out vendor inventories and prompt-
        ed prices to increase from unsustainable
        lower levels.                                              Don’t be left out

        Continuing NAND recovery                                          in the cold!
        Gartner expects the recovery in NAND will
        continue in 2020 due to low supply bit
        growth being overwhelmed by strong de-
        mand from solid-state drive (SSD) adop-
        tion and the ramp up of 5G smartphones.

        Revenue growth of other device categories
        varied between analog products’ decline of
        5.4% and optoelectronics’ growth of 2.4%.                      Advertising for the March

        Analog suffered due to weak end-equip-                          issue closes February 24.
        ment markets, especially industrial and
        legacy automotive, as did other broad-                                  For a ratecard or to
        based commodity devices, such as micro-                                place an ad, contact
        controllers and other logic.                                  
        Optoelectronics recorded the best perfor-
        mance of any device category due to the
        increasing number of cameras in smart-                         To receive a link to every
        phones.                                                   issue when published, click here!
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