All eyes are focused on 2021

    The Chip Insider®
    Semiconductor Equipment Weather Report: August 19, 2020
    Andrea Lati
    All eyes are focused on 2021
    • Order activity for semiconductor equipment declined for the second consecutive week amid growing uncertainty about the year ahead
    • Equipment companies had a great Q2 and a strong outlook for Q3
    • A brewing tech cold war, rising inventories, and weak macro environment are clouding visibility for 2021
    • The escalation of the tech cold war is already having some impact in Test & Assembly segments, while rising inventories are weighing on the recovery of the memory market
    • Despite the headwinds and the ongoing uncertainty, the secular drivers for the industry remain healthy and should drive growth further in 2021
    • Equipment forecast has been upgraded to +10% from +7% on the back of stronger than expected demand in 1H20 and with a positive outlook for Q3. Meanwhile, IC and Electronics forecasts remained nearly unchanged at +7% and -5%, respectively
    • VLSI's Chip Price Performance Index declined 0.4 points
      • DRAM fell
      • NAND fell
      • MPUs rose
    • IC Inventories are surging
    All eyes are focused on 2021

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