Q2 Outlook

Q2 guidance averages -5% among the 21 companies, fewer than usual, that have been prepared to provide it, says IC Insights and, of those who have provided it, the margin offered is wider than usual.

Six of the 21 expect to see their sales rise in 2Q, and 15 anticipate a sales decline.

Companies projecting an increase in their 2Q sales include MediaTek, AMD, Western Digital/SanDisk, UMC, Analog Devices, and SMIC.

MediaTek’s 2Q sales outlook of 6% ranks highest among the 21 listed companies.  The company credits its positive second-quarter revenue guidance to expanding sales of its 5G-chipset sales for smartphones.

Evidence of strong demand for NAND flash from datacentre and SSD applications is reflected in the 4% sales growth guidance from Western Digital/SanDisk, whose flash sales are heavily weighted toward these two end-use markets.

At the opposite end of the spectrum, double-digit sales declines are anticipated by each of Europe’s three largest semiconductor suppliers, as well as TI and Skyworks.

IC Insights forecasts that the total IC market will decline by 6% in 2Q20 compared to 1Q20.