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
    • The Chip Price Performance Index (CPPI) tumbled
      • DRAM plunged
      • NAND slid
      • MPUs declined