Visibility in 2H20 is blocked and recent fires drive caution

    The Chip Insider®
    Semiconductor Equipment Weather Report: March 23, 2020
    Visibility in 2H20 is blocked and recent fires drive caution
    • Order activity for semiconductor equipment extended its decline, but at a slower rate from the previous week
    • Even though the chip making industry has been somewhat insulated from COVID-19 fallout, the overall sentiment is deteriorating in the face of a sharp contraction in economic activity
    • Second quarter GDP is now expected fall double digits with services and consumer expected to take the biggest hit
    • The positive is the memories of the Great Recession are still fresh and the central banks and governments around the world are pulling their bazookas to backstop the economy
    • The data from China is also becoming more positive, so there is light at the end of the tunnel even though timing remains uncertain
    • The Chip Price Performance Index (CPPI) slipped by another point
      • DRAM fell
      • NAND slid
      • MPUs declined