ChannelLife New Zealand logo
Industry insider news for New Zealand's technology resellers
Story image

IDC: COVID-19 to leave US$26B impact on semiconductor market

Mon 23 Mar 2020
FYI, this story is more than a year old

A new IDC report states that the COVID-19 virus will have a serious impact on the semiconductor market, on top of the PC market, the smartphone market, and global IT spending.

The impact will likely be close to US$26 billion.

The Coronavirus Disease 2019 (COVID-19) has now spread globally with the vast majority of countries reporting cases

In addition to the human cost of life, the impact of the spread of the virus on the global economy is only beginning to be appreciated and has deep implications for the world's technology supply chain. 

The ‘Impact of COVID-19 on the Worldwide Semiconductor Market Forecast’ report provides a framework to evaluate the market impact through four scenarios that assess the range of possible outcomes. 

According to the report, “There is nearly an 80% chance for significant contraction in worldwide semiconductor revenues in 2020, instead of a previously expected minor overall growth of 2%.”

Each scenario is based on varying assumptions and severity of the impact to businesses for technology suppliers. 

For each scenario, a range of critical factors are assessed with a resulting updated forecast, presented with leading indicators to help clients navigate this emergency.

"The emergence of COVID-19 has brought with it travel bans and quarantines; massive slowing of the supply chain; uncertainty in the stock market; falling business confidence, and growing panic among the population," says IDC semiconductors and enabling technologies programme vice president Mario Morales. 

"Despite the growing uncertainty and panic, technology suppliers must continue to focus on their long-term investments, maintain engagement with partners and prospects, and look to specific markets for stability. Emerging technologies like 5G, the Internet of Things, high-performance computing, and intelligent edge will be fundamental to an overall recovery by the technology sector."

Other report highlights include:

  • There is still a one-in-five chance that a fast, strong bounce back from COVID-19 in 2020 is possible.
     
  • On a global level, the COVID-19 crisis is just beginning, with too many variables to immediately craft a single forecast in response.
     
  • The impact to technology supply chains in China are significant, but the timing of the recovery is uncertain.

At this time, IDC says it believes the most likely outcome for this event will be a year-over-year revenue growth rate of -6% for the worldwide semiconductor market in 2020, giving this scenario a 54% probability. 

Under this scenario, the supply chain will start to recover, and quarantines and travel bans will ease, over the summer. 

For the worldwide semiconductor market, the impact will be $25.8 billion. 

While the impact of the virus will be felt through the bulk of the year, the accumulated knowledge about the virus, public health initiatives, and other efforts will to some degree mitigate the harm done by COVID-19. 

In the short term, there will be lower demand for systems and some impact to component availability, but as recovery sets in, growth will return to the market.

Related stories
Top stories
Story image
Customer
ValueFlow and FLI announce capital alliance for enhanced channel outcomes
ValueFlow and Founder Led Investments (FLI) have announced that they have entered into a capital alliance, which looks to expand ValueFlows business in Australia and Asia Pacific.
Story image
Gartner
Fortinet attributes Gartner-reported growth to ZTNA approach
Zero-trust is slowly becoming a dominant enterprise security strategy for businesses, and the Gartner report highlights that although prominent, it is often underutilised.
Story image
Cyber resilience
NZ’s Cyber Resilience Framework to be evolving and potentially automated
The government's already putting $2.4 million into the Cyber Resilience Framework in its initial stages, what is it and why is it important?
Story image
Sustainability
CDC hyperscale data centres now open in New Zealand
CDC Data Centres (CDC) says two new, state-of-the-art hyperscale data centres are now open for business in Auckland.
Story image
Ingram Micro
Ingram Micro NZ Showcase On The Road is full steam ahead
After a year of COVID-19-related disruptions, the Ingram Micro Showcase On The Road 2022 is finally going ahead, with registrations now open to interested parties.
Story image
Smartphone
Hands-on review: OPPO Find X5 smartphone
With the release of the new OPPO Find X5 in March, we got the opportunity to explore another one of their premium devices.
Story image
Smartphone
Samsung introduces new generation of foldable smartphones
Samsung has unveiled its new range of Galaxy Z smartphones, bringing new developments to the company’s foldable smartphone portfolio.
Story image
Dicker Data
Dicker Data brought on as Acronis partner for A/NZ
The news about the partnership comes in as cyber criminals continue to exploit gaps in traditional solutions and strategies in NZ and across the APAC region.
Story image
Google Cloud
Google Cloud to open first cloud region in NZ - among others
Google Cloud has announced plans to bring three new cloud regions, one each in New Zealand, Malaysia and Thailand.
Story image
Developers
Snyk announces plans to expand partner network in APJ
Recognising that partnerships are critical for growth, Snyk is building an entire partner ecosystem that will drive its expansion across APJ.
Story image
Techday
10 misconceptions about Techday and how it operates
Even with 17 years in the tech news space, Techday still finds that there are a range of things people misunderstand about how we operate.
Story image
Sustainability
NZ program recovers and recycles more than 177 tonnes of e-waste
The TechCollect NZ pilot program says its milestone of recovering and recycling more than 177 tonnes of ICT e-waste recognises the efforts of many.
Story image
Hybrid Cloud
The essential guide to digital transformation by SolarWinds
Digital transformation is a buzzword thrown around all the time by companies, but what does it actually mean and why is it important? SolarWinds breaks it down.
Story image
Home Entertainment
Hands-on review: TCL 65″ C835 Mini LED 4K Google TV
We introduce you today to a TV that brings the height of immersion to your viewing experience: The TCL 65″ C835 Mini LED 4K Google TV.
Story image
Artificial Intelligence
Exclusive: NZ-based DEFEND offers global cyber protection
DEFEND supports customers in 66 countries across the globe with a relentless focus on ensuring that every dollar spent on security provides a meaningful return on investment and reduces cyber risk.
Story image
Servers
New Zealand cloud provider challenges Google's claims on data control for region
A Wellington cloud services provider says Google's claim it will offer New Zealanders complete control over their own data is not true.
Story image
Distribution
Garmin expands NZ footprint with new Auckland distribution centre
The facility at Goodman’s Highbrook Business Park will be fully operational from October 2022 and features 3,586sqm of warehouse space.
Story image
Tech job moves
Tech job moves - Fastly, INX, Kinly, SmartBear & Vectra AI
We round up all job appointments from July 29 - August 12, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Privileged Access Management / PAM
The importance of stopping identity sprawl for cybersecurity
The 2021 Data Breach Investigations Report (DBIR) shows that 61% of all breaches involve malicious actors gaining unauthorised, privileged access to data by using a compromised credential. Unfortunately, it is often too late when the misuse of a credential is detected.
Story image
InternetNZ
How well do rangatahi understand cyber safety in Aotearoa?
Do rangatahi in Aotearoa understand the importance of being safe online, or has lifelong exposure to the internet resulted in widespread complacency?
Story image
Firewall
Why printing security plays a vital part in keeping Aotearoa safe
While internet printing, mobile printing and other similar technologies have no doubt made things easier to manage, it has also brought a whole new set of problems to the table.
Story image
Arlo
Hands-on review: Arlo Go 2 security camera
In my humble opinion, Arlo Go 2 offers security for anyone needing to keep a remote eye on prized possessions or premises at different locations.
Story image
Application Performance Monitoring / APM
New Relic integrates offering with Atlassian’s Jira Software
New Relic has integrated errors inbox with Jira Software to allow developers to easily access and set up complete stack error tracking and software performance monitoring from within the tool.
Story image
Economics
9 in 10 retailers prepared for economic challenges this year
Some 9 in 10 retailers (86%) are prepared for continued inflation, higher interest rates and potentially lower consumer spending, according to new research.
Story image
Samsung
New range of Samsung Smart Watches announced with health focus
Samsung has announced new additions to its SmartWatch portfolio, with the Galaxy Watch5 and Galaxy Watch5 Pro to be released in late August.
Story image
SaaS
Cloud and data protection big challenges for NZ businesses
"This surge towards a cloud-first approach meant security and safety became afterthoughts - there's no point being the fastest car on the racetrack if you crash.”
Story image
Gaming
Attacks on gaming companies more than double over past year
The State of the Internet report shows gaming companies and gamer accounts are at risk, following a surge in web application attacks post pandemic.
Story image
CyberCX
Nozomi Networks adds nine partners to its MSSP program
OT and IoT security company Nozomi Networks has added nine new members to its MSSP Partner Program, and the list includes CyberCX and Deloitte.
Story image
Data Protection
Zero Trust, but verify - finding the OT in ZerO Trust
The move to remote and cloud-based technologies has shifted the goalposts for cybersecurity. It now needs to cover multiple people, devices, platforms, and networks.
Story image
Charity
SnapLogic teams up with meetmagic for charity and children
SnapLogic has announced its partnership with meetmagic, an online Australian platform that combines business and philanthropy.
Story image
IDC
High level of Customer Identity & Access Management adoption
The study from Okta revealed that the pandemic has either accelerated or highlighted the need for digital-first strategies.
Story image
SmartWatch
Hands-on review: Huawei Watch D smart watch
The Huawei Watch D is the latest flagship smart watch from the Chinese tech giant, and it's further proof that the company is more than capable of competing with the likes of Samsung and Apple in the highly competitive wearable market.
Story image
Dark web
Beware the darkverse and its cyber-physical threats
A darkverse of criminality hidden from law enforcement could quickly evolve to fuel a new industry of metaverse-related cybercrime.
Story image
Home security
Hands-on review: Eufy Wire-Free Dual Cam Video Doorbell 2K
We have had our house secured by Eufy products for over seven months now. We love the brand, and it has never let us down.
Story image
Machine learning
Sysdig releases CDR offering to combat cryptojacking
Sysdig has unveiled a cloud detection and response (CDR) offering powered by machine learning to combat cryptojacking.
Story image
Cybersecurity
Education sector seeing highest volumes of cyber attacks
When breaking down the numbers to education attacks by region in July 2022, A/NZ was the most heavily attacked.
Story image
Review
Hands-on review: JBL Flip 6 portable speaker
Once you switch it on, and listen away for up to 12 hours, you will quickly realise that this is a little speaker looking for a party.
Story image
Cyber attacks
Dramatic uptick in threat activity with exploits growing nearly 150%
"While it’s not a surprise given increased attack opportunities like remote work, it’s still a worrying development and one we cannot ignore."
Story image
ExtraHop
Organisations exposing highly sensitive protocols to public internet
More than 60% of organisations expose remote control protocol SSH to the public internet, while 36% of organisations expose the insecure FTP protocol.
Story image
Ingram Micro
Ingram Micro NZ sees $74 million revenue growth in 2021
Ingram Micro New Zealand's latest financial report reveals that its revenue from contracts with customers increased by almost $74 million in 2021.
Story image
Surveillance
Ministry will no longer accept equipment from Chinese firm Hikvision
The Ministry of Business, Innovation and Employment (MBIE) says it will no longer accept equipment from a major Chinese surveillance camera maker.
Story image
Cloud
Microsoft announces Pax8 as indirect CSP distributor in A/NZ
Microsoft has recently announced Pax8 as a Cloud Solution Provider (CSP) indirect distributor in the A/NZ region.