The new coronavirus pandemic will hit the semiconductor supply and demand, leading to a decline of 0.9 per cent in worldwide semiconductor revenue this year, a Gartner report said on Thursday. This is sharply down from the earlier forecast of 12.5 per cent growth for the year.

“NAND flash supply will remain historically low in 2020 due to fab delays and technology transitions, but the demand will diminish later in 2020,” said Gordon. Strong demand from cloud service providers in the first half of 2020 will push pricing and revenue higher in server DRAM. However, this growth will be more than offset by weak demand and falling prices from the smartphone market.