Gartner reports that worldwide semiconductor revenue is forecast to total $429 billion in 2019, which signals a 9.6% decline from 2018’s figure of $475 billion.
Senior principal research analyst Ben Lee said the semiconductor market is being impacted by a number of factors.
“A weaker pricing environment for memory and some other chips types combined with the US-China trade dispute and lower growth in major applications, including smartphones, servers and PCs, is driving the global semiconductor market to its lowest growth since 2009.”
Lee recommended that semiconductor product managers should review production and investment plans to protect themselves from the weaker market.
Gartner also highlighted that US-imposed restrictions on Chinese businesses will have a long-term impact on semiconductor supply and demand.
However, China’s domestic semiconductor production is expected to accelerate.