Andy Tuan, Managing Director of Lynx Consulting just told attendees that whilst Covid-19 is and will undoubtably continue to cause a sort of economic recission, it has kickstarted a spike in the semiconductor market.
“During this pandemic, people and business have had to behave very differently because of the lockdowns,” Tuan told attendees. “Everything has had to go on the internet and the result of this has been a virtual environment.”
“Things like working from home and education online has contributed to a spike of high-tech spending. In the first half of 2020 the growth of spending on technology grew so fast, and at this moment, Q3 and Q4 is still at the high end of this curve.”
“At Lynx, we like to call this a technology expansion,” he explained. Illustrating the details of such technology expansion, Tuan said he expects growth to continue at close to 3-4% next year.
“This growth will be supported by a lot of new applications like Internet of Things, artificial intelligence, autonomous smart vehicles, VR and more, all of which require 5G as the infrastructure.”
Growth by region
Looking at growth by region, Tuan focuses on Korea, Taiwan and Japan. “Growth for Korea is coming from the semiconductor memory sector,” he said. “They continue to develop the best memory technology and they continue to drive a lot of new display technology.”
He also told attendees that there is a lot of new investment in technology from the region.
Moving on, he told viewers that Taiwan is a different story, and the global number one in the foundry industry. “Because of the foundry industry nature, they have a very diverse customer base, and also different applications to achieve a more balanced growth.”
Speaking about China, the largest electronic device end-market, Tuan said the market is being supported by a lot of financial incentive policy provided by the government as well as industry leaders.
Concluding his presentation, Tuan said, “Despite the impact of the Covid-19 pandemic, Asia is a leading market for ESG but more investment and direct participation will be required in the value chain to address local supply gaps.