Impact of COVID-19 on the Global FPGA in the Telecom Sector Market
The field-programmable gate arrays (FPGAs) are widely used in the field of network processing, security, and deep packet inspection. FPGAs are suitable for telecom applications as they can be used for diverse applications such as in baseband, radio transmission, optical transport network, network infrastructure, and network processing. FPGAs also support features such as hardware and software acceleration, re-programmability, and parallel processing. Due to Covid-19, the semiconductors industry has witnessed major disruptions in production and supply chain management, making it difficult for manufacturers and suppliers to maintain a demand-supply equilibrium. In 2019, the telecom sector managed to showcase steady improvement in terms of the average revenue per user, controlled capital expenditure, and tariff hikes. In 2020, the COVID-19 pandemic has impacted the telecom sector revenues due to a lack of physical recharges and limited customer acquisition. However, this is being balanced by the increasing mobile usage resulting from the adoption of the work from home culture, increased internet usage, and digital recharges.
The COVID-19 outbreak has created widespread anxiety and economic hardship for all components of the value chain, including businesses and customers across the world. The current state of FPGAs can be attributed to the rising demand for FPGAs from the telecom sector and their limited supply from the manufacturers. With an increasing number of mobile internet users, telecom companies require highly efficient system designs, which can be achieved by incorporating FPGAs. Leading companies (such as Microsemi Corporation and Lattice Semiconductor) functioning in this market are focused on adopting various growth strategies (organic and inorganic), including new product launches and upgradation, strategic partnerships, deals, collaborations, and acquisitions of promising players. Based on the MRF analysis, the FPGAs in the telecom sector market is estimated to maintain a near-stable position during this year owing to the mixed impacts of high demand from the telecom sector and shortage of raw material from the suppliers.