Many enterprises transitioned their CAPEX in server procurement to OPEX in managed cloud services in 1H20 in the face of economic and other uncertainties from the COVID-19 pandemic, according to TrendForce’s latest investigations. These enterprises have subsequently slowed down their server procurement orders, in turn resulting in enterprise server suppliers, led by Dell and HPE, to revise down their yearly shipment targets starting in 3Q20. TrendForce has thereby also revised the forecasted 0.8% QoQ decline in 3Q20 server shipment down to 4.9%.
Integrating smart manufacturing remains the key to enterprise survival in the face of the COVID-19 pandemic, according to TrendForce’s latest investigations. In addition to furthering the technical development of AR, teleoperation, and computer vision, smart manufacturing brings about other palpable benefits such as reducing human labor, and thus facilitating social distancing, through the adoption of unmanned transport machines, such as AGV (automated guided vehicles) and AMR (autonomous mobile robots). The global smart manufacturing market is expected to reach total revenue of US$400 Billion in 2024, with a 10.1% CAGR during the 2020-2024 period, as advancements in remote and contactless technologies contribute to the bulk of this growth.
Polysilicon prices have seen continuous hikes in the past two weeks due to the explosion at Jiangsu Zhongneng’s chemical plant in Xinjiang and the impact of the COVID-19 pandemic, according to TrendForce’s latest investigations. In particular, mono polysilicon closing prices increased by more than 10% on average, which led wafer suppliers to increase wafer prices. As a result of rising wafer prices, the downswing in global PV module prices rebounded into an uptrend instead.
The border restrictions and national lockdowns instituted by various governments due to the COVID-19 pandemic’s impact in 1Q20 resulted in low inventory levels for clients of packaging and testing (OSAT, outsourced semiconductor assembly and test) companies and for distribution channels as well, according to TrendForce’s latest investigations. As the supply chain gradually recovered in 2Q20, governments began instituting fiscal policies to stimulate the economy. These factors, combined with the rise of the stay-at-home economy, led to an increased restocking demand from downstream clients, in turn providing a boost to OSAT revenue, which reached US$6.325 billion in 2Q20, a 26.6% increase YoY.
Downstream LED lighting demand is highly correlated with the state of the overall economy, according to TrendForce’s latest investigations. LED lighting manufacturers, such as Signify, Acuity Brands, Zumtobel, Leotek (a subsidiary of Lite-On Group), and Unilumin, have each released new outdoor smart lighting products and integrated smart lighting solutions, which are likely to raise the penetration rate of smart LED street lights. TrendForce predicts the global LED smart street light market (which includes only luminaires and single lighting control systems) to reach US$1.094 in total revenue, with a CAGR of 8.2% from 2019 to 2024.
