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This years chip market is not optimistic?

??China's old saying that prosperity is bound to decline does not go against the grain when it comes to the chip industry.
??The chip market in 2018 is very popular. According to IHS Markit, global chip industry sales grew by 15% in 2018 at $482 billion, which is expected to turn into $446.2 billion in 2019, down 7.4% from 2018. Why does it happen? With non-small network recognition of the Rongl chip manufacturer back pot.
??Let's look at the global chip market sales data for the first quarter of 2019. According to a report issued by the World Semiconductor Trade Statistics Association (WSTS), chip sales in the first quarter of 2019 were $96.8 billion, down 13% from $111.1 billion in the same period of 2018, and down 15.5% from $114.7 billion in the previous quarter.
??IC Insight's statistics are as follows, with a decline of 17.6%, the fourth largest decline in the market in 35 years.


??IC Insights said Intel was responsible for the drop. Intel's PC processors have been out of stock through the third quarter.

??The main reason for the shortage is Intel's focus on data centers.


??However, Intel's data center business is not ideal this year. Data centers have always been Intel's most expensive and profitable product, while Intel's data center and personal computer processor business declined in the first quarter, and Intel had to downgrade its second quarter and annual sales forecasts.
??Intel said in a statement that revenue in the first quarter of 2019 was about $15.6 billion and net income per share was 83 cents. According to data compiled by Bloomberg, analysts expect an average of $16.9 billion, or 96 cents, per share. Intel said sales this year would be $69 billion, well below analysts'forecast of $71.3 billion.
??Sales's data center business has suffered as much as Intel's, with revenue falling by 7% annually. All this indicates that the data center market is no longer a cash cow for chipmakers this year.
??Looking ahead to the second half of the year, manufacturers are sure to say that demand for chips will improve, but when you think about it, that's not the case.
??Firstly, the demand of data center is almost saturated, and more demand will turn to software in the future. Secondly, if there is no breakthrough in performance, it will be difficult to arouse the desire of users to switch. From the point of view of data center and personal computer processor alone, it is very difficult for these two markets to grow again this year.
??In addition, according to the previously exposed Intel CPU roadmap, the Intel desktop processor process will not use 10 nm process in the short term, which has become a "hand" to strangle Intel's throat.
??Can the chip industry really recover this year? How does Intel carry this "big pot" to hand in a satisfactory answer? We will wait and see.

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