With each passing week of what the IMF has taken to calling the Great Lockdown, the semiconductor industry has been adjusting its economic forecasts downward. McKinsey is the latest to chime in; it said it expects sales demand in the global chip market will decline between 5% and 15% in 2020, with steep declines anticipated for some IC market segments that will overwhelm the gains it still expects in others. That’s the most dire projection thus far.
The range of McKinsey’s projection — 5 to 15 percent — is particularly wide, but perhaps understandably so. The Covid-19 outbreak is so unprecedented in the global economy that experts can’t draw on past crises to measure its potential impact on business.