Table of Contents

COVID-19 is Now a Major Theme for 2020

COVID-19 Impact on Semiconductors

Semiconductors Sector Scorecard

Thematic Briefing

Appendix: Our Thematic Research Methodology

COVID-19 Impact on Semiconductors - Thematic Research

Summary

The COVID-19 outbreak is now travelling around the world, leaving a trail of destruction in its wake. This report discusses the impact of the virus on leading companies in the semiconductors sector.

Key Highlights

- In the space of three months, the backdrop for the semiconductor sector has changed, but long-term issues remain and must be solved.
- The industry entered 2020 amid slowing global economic growth, the rancor of the US-China trade war, a desire to shift the global supply chain away from dependence on China, and a flat sales picture for its two biggest customers: smartphone manufacturers and laptop suppliers.
- The COVID-19 pandemic will shrink worldwide end-user demand for everyday products powered by semiconductors. COVID-19’s impact also means much of the industry is only operating at about 50% capacity, though China is moving again. At the same time, the global supply chain has stalled, exacerbated by COVID-19-related border checks that could last for months.

Scope

- This report analyzes the impact of COVID-19 on the global semiconductors sector.
- It identifies those companies that may benefit from the impact of COVID-19 over a 12-month period, as well as those companies that will lose out.
- It includes a thematic screen, that ranks the 58 leading companies in this sector on the basis of overall leadership in the 10 themes that matter most to their industry, including COVID-19. This generates a leading indicator of future performance.

Reasons to Buy

- COVID-19 is by far the most significant theme to affect the technology industry in 2020.
- It is effectively a stress test on companies’ ability to cope with extreme shocks.
- COVID-19 will test the financial robustness of companies.
- Many companies will not survive this initial phase. Almost all others will suffer a significant drop in revenues.
- This report will help you understand the impact of COVID-19 on the semiconductors sector and identify which types of companies could potentially benefit from the impact of COVID-19, as well as those businesses that are set to lose out.