Chip market growth continues to soften
The three-month averaged sales figure for October was $41.81 billion, up one percent from the previous month and up 12.7 percent from October 2017. In September, the equivalent year-on-year growth figure was 13.8 percent.
This continues a general trend of reducing market growth in 2H18 as hot memory markets start to cool. In May year-on-year growth was at 21 percent but had reduced to 15 percent in August.
All the major regions except Asia-Pacific excluding China and Japan, saw growth moderate, which is in line with the WSTS autumn forecast of 15.9 percent growth for the market in 2018 and 2.6 percent growth in 2019 (see Global chip market to return to low growth in 2019).
Three-month average of sales for October and September 2018. Source: SIA/WSTS.
The China market is responsible of a third of all the world’s semiconductor sales and its three-month average market was $14.37 billion, up 23.3 percent on a year before. The Asia-Pacific region excluding China and Japan is the next largest with three-month-average sales of $10.72 billion and annual growth of only 3.7 percent.
The Americas region with sales of $9.75 billion achieved better-than-average growth of 14.1 percent while the European and Japanese markets continue to shrink in global significance in the chip market with below average growth.
Monthly data is given by the SIA and other bodies as a three-month average, with the exception of year-to-date figures, although the WSTS organization tracks actual monthly data. The SIA and other regional semiconductor industry bodies opt to use averaged data because it evens out the actual data that typically shows troughs at the beginnings of quarters and peaks at the ends of quarters.
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