While businesses are coping with the challenges evolved from the disruptions brought by the COVID-19 pandemic, it is inevitable that they also need to transform to navigate the new normal in their industries at the same time.
As the impact of COVID-19 continues to reverberate, individuals and companies have shifted their focus and resources in various ways to support their new ways of living, families, businesses and staff to adapt to this challenging time. All these changes will become the new normal and shape the new economy after the pandemic.
According to a report by Mckinsey on ‘Coronavirus: Implications for the semiconductor industry’ published in April 2020, they expected demand to decline by 5 to 15 percent for the semiconductor industry as a whole this year compared to 2019. Breaking down this projection by major end markets—PC or server, wireless communication, wired communication, consumer electronics, automotive, and industrial applications—showed that demand shifts vary greatly, with steep declines anticipated for some markets and gains expected in others. These differences can be explained by the diversity of underlying trends that affect demand for semiconductors, and the varying impact of macroeconomic forces on each end market.
Mckinsey suggested companies must quickly move from strategic plans to action, as market dynamics in the semiconductor industry are rapidly changing. As semiconductor players adapt to these changes and journey toward the next normal via bold and timely moves, they can help their businesses thrive.