The semiconductor industry is undergoing a brutal downturn in 2019—a drop so powerful that it can only be ended by an even more formidable force: the
The semiconductor industry is undergoing a brutal downturn in 2019—a drop so powerful that it can only be ended by an even more formidable force: the massive economic impact exerted by the deployment of 5G technology.
Following a 12.8 plunge in 2019, global semiconductor market revenue will rebound to 5.9 percent growth in 2020—an 18-percentage point swing—according to IHS Markit | Technology, now a part of Informa Tech. Global revenue will rise to $448 billion next year, up from $422.8 billion in 2019.
The deployment of 5G will be the main factor propelling this recovery, not only because of the renewed growth it will bring to the wireless industry, but also due to the wider benefits the wireless technology will bestow on global businesses and economies.
“Throughout the history of the semiconductor industry, every market downturn has ended with the arrival of a technical innovation that spurred a major increase in demand,” said Len Jelinek, senior director, semiconductor manufacturing for IHS Markit | Technology. “In the past, these innovations have had momentous impacts, such as the advent of the world wide web or the introduction of the iPhone. Now another historic innovation is set will take its place among these advances: 5G. However, 5G’s impact will spread far beyond the confines of the tech industry, impacting every aspect of society and driving new economic activity that will spur rising demand for microchips.”
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