Despite its downturn in 2019, economists agreed there is light on the horizon for the manufacturing sector, including the semiconductor industry in the coming year. According to the IHS Markit, the recovery of 2020 will come as welcome news to a semiconductor industry battered by the worst downturn in a decade. Following a 12.8 plunge in 2019, global semiconductor market revenue will rebound to 5.9 percent growth in 2020. The deployment of 5G will be the main factor propelling this recovery — not only because of the renewed growth it will bring to the wireless industry — but also due to the wider benefits the wireless technology will bestow on global businesses and economies. The World Semiconductor Trade Statistics also expected the worldwide semiconductor market will recover in 2020 with 5.9 percent growth, and Optoelectronics will contribute the highest growth followed by Logic.

“The industry remains resilient and cautiously optimistic that there will be a brighter year ahead due to the demand push by upcoming technologies such as 5G and the automotive sector. However, the uncertainty remains because of the US-China trade tension,” said Singapore Semiconductor Industry Association Executive Director Ang Wee Seng.“In Singapore, the semiconductor industry in Singapore will continue to grow in the next decade, at the sometime, move up the value chain and shift into the advance R&D space. Singapore has the advantage of having strong support from research institutions, a huge community of talent pool and strong IP law. All these will position Singapore a good place for semiconductor companies to invest in their R&D initiatives as well as a competitive landscape in the semiconductor market.