CEO Robert Swan during his CNBC expressed confidence in the ability of the data center components market to return to growth in the second half of the year. His confidence is based on the long-term development trend of the "cloud" ecosystem. Meanwhile, not all market players are set for a quick recovery. Memory manufacturers and representatives of also warned the public about the protracted nature of the downturn in the semiconductor market.
Texas Instruments explains its pessimism by its experience in the semiconductor components market. Statistics says that the development of the market follows a cyclical principle. The previous growth phase lasted ten consecutive quarters. The decline phase typically lasts four to five quarters, and Texas Instruments' performance has only worsened two quarters in a row. In other words, if the crisis in the semiconductor segment develops according to the classical cycle, then it will return to growth either at the beginning of next year or in the second quarter of 2020.
Experts of the Blue Line Futures investment fund in an interview admitted that the market for semiconductor products is now very heterogeneous, and if some factors affect some shares negatively, they can give an impetus to growth to others. In the second half of the year, as analysts are convinced, the general vector of market movement will be directed upwards. Another thing is that some companies during this period may not yet return to the growth of economic indicators.
Robert Swan explained in an interview with CNBC that the decline in the server market is due to the previous rapid growth in the fourth quarter, and now Intel's corporate customers will have to "digest" the formed inventory for some time.
In the consumer sector, Swan is not ready to challenge the stability of demand. In fact, he argues, supply growth is being held back not by weak demand, but by Intel's limited manufacturing capacity. In the second half of the year, the company will improve the situation with the production of 14nm processors, and will be able to better meet demand than in the first half. However, at the quarterly reporting conference, Intel representatives made it clear that in the third quarter there will be some difficulties with the availability of individual processor models.
Regarding its position in the market for telecommunications solutions for 5G networks, Intel says that the infrastructure of these networks will require not only high-speed information transfer, but also its fast processing. Intel is convinced that it has the set of components that will allow it to succeed on both fronts. In the segment of 5G modems for smartphones, Intel did not see an opportunity to operate at a profit. When the host of the broadcast asked Swan if this decision was connected with the reconciliation of Apple and Qualcomm, he simply repeated the phrase that he did not see the opportunity to work in this segment with a profit. Deliveries of 4G modems to the βlarge customerβ will continue, and nothing threatens the contract with Apple in this regard. In fact, he even helped Intel increase revenue in the first quarter, when there were problems in other areas.
Source: 3dnews.ru