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China's 5G will drive global semiconductor market to pick up next year

By Hotenda


The Semiconductor Equipment and Materials International (SEMI) recently released the latest report on the global semiconductor equipment market in the third quarter.

The report shows that global semiconductor equipment shipments in the third quarter of 2019 (July-September) were US $ 14.86 billion, a decrease of 6% compared to the same period last year. Global sales this year are expected to be $ 57.6 billion, a decrease of 10.5% year-on-year.

Among them, Taiwan's Taiwanese semiconductor shipments are currently the world's highest, at $ 3.9 billion; second place is mainland China, with shipments of $ 3.44 billion; third place is North America, with shipments of $ 2.49 billion; Ranked fourth with shipments of US $ 2.2 billion; Japan ranked fourth with shipments of US $ 1.67 billion; European shipments were US $ 390 million with the smallest shipments. It is worth mentioning that the global semiconductor market currently only has shipments in Taiwan and North America, which are year-on-year growth trends, which are 34% and 47%, respectively. The rest are downward trends. Mainland China is down 14% year-on-year, South Korea is down 36%, Japan is down 30%, and Europe is down 54%.

However, SEMI also emphasized that from the second quarter (April to June), the overall global semiconductor shipments rose by 12%, showing a recovery trend.

The report said that due to the decline in global smartphone sales, investment in semiconductor equipment has been relatively reduced. However, the advent of 5G is expected to change this trend. As 5G officially enters the commercial stage, investment in 5G-related industries is increasing. In particular, China has already started 5G services, and the accompanying 5G smartphones and related equipment will drive the global semiconductor market to become active again.

SEMI predicts that the global semiconductor equipment market will pick up next year, and sales will increase 5.5% from this year to reach $ 60.8 billion, and will increase to $ 66.8 billion in the following year, reaching a record high.

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