Caution prevails as storm clouds continue to gather
The Chip Insider®
Semiconductor Equipment Weather Report: March 31, 2020
Caution prevails as storm clouds continue to gather
Order activity for semiconductor equipment continued to trend lower, slipping to 57 degrees
Although the rate decline in order activity has moderated in the last two weeks the level of uncertainty among chipmakers and equipment suppliers is high
Equipment suppliers have not seen a significant reduction in demand yet; however, tool delivery in some areas has been challenging due to ongoing lockdown
In some cases, chipmakers have pulled in their orders in Q1 in order to avoid delivery disruptions from the lockdowns
Chipmakers' visibility in the near term is fairly limited
The impact of work-at-home economy has been positive for chipmakers, keeping their financials nearly intact in Q1
However, their prospects in Q2 will become more challenging as the impact of the recession permeates
The span and depth of the recession will be highly dependent on how fast the COVID-19 pandemic subsides