Assembly Equipment Outlook 2Q20

    The Chip Insider®
    Equipment & Emerging Markets
    April 15, 2020
    Assembly Equipment Outlook
    COVID-19 is expected to disrupt expected 2020 assembly equipment upcycle. Declining semiconductor sales and shipments will reduce demand for assembly equipment, which is expected to decline 7.9% in 2020. COVID-19 is not expected to change long-term outlook. 5G, datacenter, and AI are expected to provide long-term growth for WFE reaching $4.4B in 2024, 7.7% CAGR

    WildPhotons: Grit is often...
    Assembly Equipment Demand
    Negative IC unit demand pulled 2019 sales lower, growth in 2020
    Assembly equipment sales were already substantially below IC unit trend
    • This low level is creating a capacity shortfall that will be filled
    • 2020 lower sales will create an even larger capacity shortfall
      • Creating sharp recovery once economy and consumer demand returns to normal