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The entire semiconductor market suffered the worst slowdown in the decade



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If all of you are paying attention, the main news coming out of programs like Computex, the PC market, seems to be going well. DRAM prices have fallen. The new 7nm CPUs from AMD and the 10nm CPUs from Intel have a price to offer more profits. But the semiconductor has received a collective beating.

Global chip sales fell to $ 101.2B in the first quarter of 2019, down from $ 116.2B in the first quarter of 2018. This is the largest year-on-year decline from the depth of the Great Recession according to IHS Markit. The biggest hit hit Samsung, whose sales fell 34 percent year-on-year, while the fund fell from the NAND and DRAM markets. The prices in both components have improved dramatically. The memory chips, according to the IHS notes, were responsible for most of the crash: eliminate their impact and sales fell 4.4 percent. But the "depressing fall" was also caused by other factors, including falling demand in major markets.

IHS-Markit-Q12019

It is difficult to say which companies are exposed to the NAND and DRAM markets when looking at these graphs. Intel has regained its No. 1 spot at the top of the market thanks to the mbadive fall of Samsung. While everyone's revenue fell, the only other company that had no memory was having such success was Nvidia, which is working through an increase in RTX inventory, a sharp drop in data center sales, and a comparison with a quarter when cryptography sales were still there. driving the market. Nvidia's comparative financial data will improve in the second quarter and then we will exit the period at the time we enjoyed inflated cryptography sales.

The overall market for computer chips falls 16.7 percent in the first quarter of 2019. Interestingly, IHS says that Nvidia's sales are in part due to the direct competition of AMD graphics in the data center. This is the first time we hear this statement: AMD does not have much to say about the sales volume of its data center or overall performance, but the company's overall position in the data centers and markets of AI / ML where you want to enter has been considered quite weak. We have examined this topic due to questions about GPU AI and ML reference points. The truth is that it is difficult to find people who are working with AMD cards. The reasons are multifaceted, including factors such as the relative state of maturity and the compatibility of OpenCL compared to CUDA.

At this time, the main players in the industry still predict a recovery in the second half of the year. Soon we should know if there is any truth in this or not, since the main economic indicators will begin to diminish before we obtain formal economic reports. Due to concerns about Brexit and the EU that are likely to explode around Halloween and the trade war between the United States and China, the full-year performance of the semiconductor market in 2019 is still uncertain.

In fact, there is now a lot of uncertainty in the semiconductor market, at a more granular level. Qualcomm has been declared a mbadive monopoly and, as a result, its entire revenue generation system could be permanently altered. Nvidia is trying to find that consumers pay a significant premium for ray tracing support. AMD's new 7nm CPU and GPU are expected to increase their own efforts to regain market share. There are questions about Intel's own 10m efforts and their upcoming Ice Lake CPUs. There are questions about how the United States will sell the sales to Huawei that will impact the larger semiconductor market and how China will respond if one of its flagship companies is badly damaged. The way in which these trends and problems develop will affect the way the rest of 2019 unfolds.

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