Chip demand for PCs and consumer electronics devices may disappoint in the third quarter of 2020 despite the period being a traditional peak season for the two sectors, thanks to the coronavirus pandemic, according to industry sources.
PC demand has been picking up thanks to the rise of stay-at-home economy, said the sources. A boom in remote work, distance learning and other stay-at-home initiatives has led to stronger-than-expected notebook and tablet shipments since February, they said.
However, PC shipments may retreat starting May and could fall off a cliff in the third quarter, as there is so much uncertainty lying ahead, the sources said. The recent surge in PC shipments may be creating saturation that could freeze demand during the traditional peak season, particularly considering the fast shrinking economy and surging unemployment, both of which have already chilled demand for consumer electronics, the sources said.
The CE market is also set to experience a particularly weak third quarter of 2020, according to other sources at related chip providers who have experienced setbacks in orders recently and are cautiously managing their inventory.
On another front, pure-play foundry TSMC believes it is so far being less affected by the coronavirus outbreak compared to its fellow competitors thanks to its advanced process market leadership. Nevertheless, TSMC has adopted a more conservative view due to the economic impact from the pandemic and related market uncertainties. As a result, the foundry already cut its foundry market growth forecast this year to 7-13%, while revising the overall semiconductor market outlook to flat growth or a slight decrease.
Article translated by Jessie Shen
