SCOTTSDALE, AZ – IC Insights’ global IC market forecast has turned negative, with the research firm now predicting a loss of 4% for the year. Prior to the industrywide coronavirus-driven shutdowns, the firm previously guided for 3% growth.
When 2020 started, global economic conditions pointed to single-digit percentage sales growth in the IC market after it fell 15% in 2019, the research firm said. However, the world abruptly changed in the first quarter with the rapid outbreak of the Covid-19 virus, which shut down nearly all countries and paralyzed global markets beginning in March.
IC Insights’ current baseline forecast for the IC market in 2020 calls for a 4% drop. Moreover, global GDP is now expected to post a decline this year that is at least as deep as the 2.1% drop that was registered in 2009. Before 2009, the previous year that global GDP was negative was 1946.
When the March update was released, the expectation at that time was the majority of the impact on the global economy and IC market from Covid-19 would primarily be from market and production disruptions within China. However, the impact of Covid-19 has transformed into a worldwide issue, with the US and Europe now being the hotspots, says IC Insights.