Global sales increased slightly (0.9%) in the last quarter of 2019 compared to the previous quarter, but when comparing it with the same period of 2018, sales decreased 5.5%. America represents the largest decline in semiconductor sales, by 23.8% decrease compared to 2018. In China, which is usually the third most used country for electricity, sales have declined 8.7%.
Semiconductor sales are sinking, but AMD is earning more
SIA pointed out that international agreements have a significant impact on this market, and a senior official of the organization has honestly stated that the "first phase" of a trade agreement between China and the US (signed last month) and ratification of the agreement between the US, Mexico and Canada are too good to recommend sector again. The case is that it seems they blamed all blockages and blamed what Trump put on China In the last months.
According to a source, apart from the huge losses present in the semiconductor market, there are "players" who not only get out of the pothole, but are really strong. It is a form of AMDjust announced that its related benefits added 148% compared to 2018, and in fact recent industry reports predict that 2020 will be a very strong year for AMD, so this figure is expected to rise this year.
The producers of DRAM, are not much affected
The biggest loss during 2019 has been DRAM manufacturers, who have seen it reduced revenue by 32.6% compared to 2018. Sales are also reduced, because in 2019 37.1% less DRAM products were sold than during 2018, and specifically NAND products have seen their sales drop by 25.9%.
Of course, and this is open to guess, if you look at amount of RAM and SSDs We are seeing much greater flexibility in recent times. Recently, a 16 GB DDR4 RAM kit cost about 200 euros, and now that same kit can be found for less than 100. The reason? It's definitely more of a stock, but of course you know that a 30-minute blackout raises the threat of prices going up.
What will happen from the market now?
This market is volatile and any setback makes it vulnerable (for example now with the closure of factories by some manufacturers due to the famous Coronavirus). In other words, it's a market that it lacks durability others.
Every time the industry has lost as much as it did, what companies have been doing is finding a quick solution to clean up the economy: first they will want to get rid of the stock they have in their warehouses, sales are cheaper. Later, they will want to bring the market to new generations, but to repay the R&D they made and all previous losses, it is expected that retail prices will go up significantly.
