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Business trends

Samsung and rival chipmakers brace for stall in supercycle

Memory market now forecast to drop 0.3% from previous outlook of 3.7% growth

Shrinking smartphone demand and the U.S.-China trade war are predicted to drastically slow down growth in the semiconductor market.   © Reuters

TOKYO/SEOUL/PALO ALTO, U.S. -- Chipmakers like Samsung Electronics are now girding for a harsher earnings environment as they grapple with whether the long "supercycle" boom is giving way to a temporary correction or a full-blown contraction.

World Semiconductor Trade Statistics has downgraded its memory market forecast for 2019 to a 0.3% year-on-year drop from the 3.7% growth projected in June. It sees the semiconductor market as a whole growing just 2.6% instead of 4.4%. The overall figure was dragged down by memory, which accounts for roughly 30% of total demand.

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