Page 22 - MUFG Spring 2021

From TVs to cameras, from washing machines and refrigerators to LED bulbs— semiconductors are becoming ubiquitous. While we predict sales to decline by 4% in 2020, we view the downturn as temporary and expect a strong rebound in semiconductor demand by 2021.
We see a major discrepancy this year between the demand for semiconductors in the memory (or storage) segment of the computing market, which is expected to grow in the mid- to high- single digits—and the non-memory segment, which is undergoing an almost double-digit decline.
THE EFFECT ON INTERNET COMPANIES
Internet companies that derive their main income from advertising have been negatively
affected by the pandemic. Four of the largest online advertisers include the retail, auto, travel and, entertainment industries—and all of them took a hit in consumer demand that has squeezed their ad budgets. This setback has, in turn, led to declining ad revenue among Internet companies such as search engines and social-media networks, as well as sites and mobile-app developers that publish crowd- sourced reviews about businesses and operate online reservation services.
We believe that some of the largest Internet companies are diversified enough to withstand the downturn in ad revenue, and perhaps even thrive by offering other services, but that the knock-on effect of declining ad expenditures is felt across the board.
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MUFG TRANSACTION BANKING AMERICAS GROUP / SPRING 2021