According to the Science and Technology Daily, the South Korean media "Theinvestor" reported that with the continuous growth of 5G equipment, the Korean memory industry is expected to revive from 2020, changing the situation of this year's bleak operation.
Korean market participants said that the fundamentals of the semiconductor industry will be significantly improved by 2020. Among them, thanks to manufacturers adjusting market supply, the DRAM market will reach a balance between supply and demand, and prices are expected to rebound significantly in the second quarter of 2020. For example, SK Hynix and Micron began to reduce production scale, and Samsung plans to convert the production line of DRAM to the production line of image sensors next year.
At the same time, research unit IHS Markit said that the large shipments of 5G mobile phones will increase demand for semiconductors. Next year, global semiconductor revenue will increase by 5.9%, and the amount will increase from 422.8 billion US dollars in 2019 to 448 billion US dollars. Therefore, 5G will be one of the most important factors driving the revival of the semiconductor market next year.
IHS Markit also said that technological innovation will drive demand growth and market dynamism will be further enhanced. South Korea's Samsung and SK hynix are currently planning to mass-produce fifth-generation low-power DRAM for 5G devices, but there are certain restrictions on DRAM capacity at this stage, so DRAM prices will rebound further.
In addition, other research institutes such as the Institute of Industrial Intelligence Research (MIC) and the Tektronix Research Institute have recently predicted that semiconductors will continue to increase in demand for 5G, AI, and automotive applications in 2020, with the help of emerging terminal applications. The industry will gradually come out of the bottom.