Order activity is up despite limited visibility

    The Chip Insider®
    Semiconductor Equipment Weather Report: May 20, 2020
    Order activity is up despite limited visibility
    • Order activity for semiconductor equipment surged nearly six points, jumping past 72 degrees
    • Despite the uncertainty from the COVID-19 pandemic, demand for equipment remains solid as semiconductor companies continue to push forward with their capacity upgrades and additions plans
    • Working from home economy coupled with surging e-commerce has offset the weakness in other sectors like automotive and industrial
    • Inventory levels, especially at the electronics OEMs, are improving
    • These changes have given chipmakers confidence to continue spending amid the global recession
    • There have been some major changes to the forecasts in this update
      • Equipment sales are now expected to increase 7% compared to our previous forecast of -6%.
      • IC sales are expected to increase nearly 1% compared to -4% in the previous update
    • VLSI's Chip Price Performance Index (CPPI) slipped further
      • DRAM dropped
      • NAND declined
      • MPUs declined
    • IC Inventories were healthier than expected in Q1

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