Earlier this year, TSMC shared a forecast that was easily very optimistic. After all, the company was expecting huge demand and growth in the smartphone market with the expected increase of 5G smartphones. However, the COVID-19 pandemic came and change everything. The company was originally expecting an 8% market growth excluding the memory chip sector. Now, it lowered its foundry market growth forecast to somewhere between 7 and 13%.
According to the report, TSMC now needs to adopt a more conservative view of 2020. After all, global pandemic changed the way we live our lives and also changed our needs. In the coming months, we may see a change in customer’s behavior. Smartphones and other non-essential goodies will easily see a drop this year. The company expects that the COVID-19 effects will keep affecting its business through the upcoming months.
As aforementioned it will affect the smartphone industry as a whole. According to market analysts, we may experience a 7 to 9% worldwide market decrease in smartphone sales until the end of the year. The only thing that can change this fact is 5G. According to TSMC, vendors and network operators are aggressively marketing 5G and introducing new phones with 5G connectivity. With the advent of mid-range smartphones with the new connectivity, we can also expect it to become more popular among customers who can’t afford an expensive flagship. 5G will definitively drive the market in the coming years.