While the electronic component industry glee club isn’t quite ready yet to burst out into “Happy days are here again”, they are at least spotting signs of a market pickup which will gain momentum later in the year.
Following the company’s Q2 financial, Phil Gallagher, President of Electronic Components at Avnet commented, “I wouldn’t say bullish about the European market, but definitely more optimistic as it came out of the December quarter. There are some signs of turn which we will watch closely.”
Over at Texas Instruments Dave Pahl, Head of Investor Relations told analysts, “When we look at the market, since 90 days ago, we moved from the third quarter where customers were increasingly cautious to the fourth quarter where results and behaviour throughout the quarter reflected what we believe is best described as demand stabilising. Based on history, this would imply that customer and channel inventory that built up during 2017 and ’18 would now mostly be depleted. This suggests that demand this year will be more a function of our customers’ end demand and, therefore, the macro economy, which may continue to be uncertain.”
And Jean Marc Chery (pictured), President and Chief Executive Officer of ST Microelectronics also struck a note of optimism.
“For the full year, we plan to return to solid revenue growth, outperforming the markets we serve. We are operating in a market, driven by broad long-term trends in electronic systems. This is driving demand for semiconductor content, and as a consequence, for our products and solutions. We also see that the supply chain has now substantially normalised from the excess inventory effect we saw last year. The current view for the market we serve is positive, and we expect the next three months will be important to confirm these dynamics.”
Market research companies are also positive about the semiconductor market in 2020. Malcolm Penn, Chief Executive Officer at Future Horizons issued a10% to 15% growth forecast last week. IC Insights is less bullish predicting single digit growth, a view with which WSTS (World Semiconductor Trade Statistics) concurs. It forecasts a 5.4% market uptick in 2020.