Electronics Production Outlook
The Chip Insider®
Semiconductor Equipment Outlook
Worldwide electronics sales are now expected to eke out a 1% gain in 2020, a big upgrade from our previous forecast of -3%. The COVID-19 pandemic didn't impact the electronics demand and its supply chain as much as we feared early in the year. In fact, several segments in electronics market got a boost from COVID-19 due to the Work-at-Home-Economy and a rapid rise in ecommerce. There was a clear decoupling of the electronics market from the world economy. The latter took a big hit from the COVID-19-related shutdowns and this year is expected to decline 3% in terms of purchasing power parity.
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Changes Since Last Forecast
- We see Electronics demand starting to decouple from W.W. GDP as they move in opposite directions
- The electronics outlook has improved dramatically since March 2020 due to COVID-19ís impact on the supply chain and Work-at-Home-Economy
- W.W. GDP has declined due to shutdowns related to the COVID-19 pandemic
- At the same time Electronics demand is increasing due to the boost from the Work-at-Home-Economy
- The outlook is improving, but is highly dependent on following outcomes:
- How long the current wave of COVID-19 lasts
- Tariffs and trade issues with China
- Industrial electronics are expected to get the biggest boost after dropping the most in 2020
- Followed by Auto, as advancements will drive a steady rise in electronics content