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The handset market has been hit hard by the coronavirus pandemic, but China is banking on 5G smartphones to help reboot its economy. Chinese vendors are expected to roll out more inexpensive 5G smartphones to stimulate demand. For its 5G infrastructure deployments, China is relying more on Taiwan’s IC design houses for chip support in line with the country’s bid to cut reliance on US supplies. For Apple, its 5G iPhone may come later than expected because of the pandemic; so may its new AirPods Pro.
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IC Insights has reiterated its semiconductor industry capital spending forecast for 2020 despite the coronavirus pandemic. Although essentially all of the risk to the current -3% semiconductor industry capital spending forecast for this year is to the downside, it is assumed that most spending will proceed as planned since the vast majority of the outlays are directed at long term goals of process technology advancements and/or additions to wafer start capacity, IC Insights indicated.