Hey guys, welcome back to FabExchange’s blog. Over the past few months, a lot has happened. A pandemic hit, Kobe Bryant died, Australia caught on fire, Parasite won the Oscar for Best Film – so many things have been swept up in the whirlwind that has been the year 2020. While globally people are dealing with adjustments that have never before been made, many wonder what this means for the semiconductor market now and in the future.
We met up with industry expert David Duke to talk a little about the state of the industry amongst all this chaos. While naturally, the impact of COVID-19 has been negative, the market for these semiconductor companies remains relatively stable. Why is it that this industry maintains stability relative to other industries during this time? The demand for next generation products at 7nm has continued unabated driven by the need for higher power efficiency in the cloud and for advanced applications such as machine learning for autonomous driving.
With this demand strength in place, many semiconductor companies have also expanded their scope. David was telling us that Nvidia is expanding deeper into software design to better leverage their latest GPUs and are rumored to be in talks to acquire ARM. In addition we expect increasing demand for technology to create a variety of adaptations designed to respond to COVID-19 such as contactless touch screens, sensors designed for assisted-living devices, automated delivery functions and remote solutions for healthcare, government and defense.
However, the impact of higher unemployment and shifting demand will cause unexpected dislocations across the global supply chain which will impact semiconductor companies differently depending on the end products they supply product to. Accordingly, we are actively working with companies that are seeking to rebalance their mix of capital assets as they implement new strategies in response to the pandemic and other factors.
If you ever want to hear more about the semiconductor industry, the craziness of 2020 or anything else, feel free to comment below and let us know what is on your mind. For now, stay safe and keep those masks on!