Chip market tries to draw line under weak 2019

February 04, 2020 //By Peter Clarke
Chip market tries to draw line under weak 2019
The global chip market in December was down 5.5 percent on the same month a year before and resulted in a full year worth $412 million, according to the Semiconductor Industry Association (SIA) reporting World Semiconductor Trade Statistics (WSTS) figures.

The full year of 2019 that was down 12.1 percent on 2018 but with a more modest decline of 5.5 percent in the final quarter, there are signs that the 2020 will mark a return to growth.

The averaged chip sales for December were $36.10 billion and this three-month average is an equivalent to fourth quarter sales of $108.3 billion, 5.5 percent lower than the total from the fourth quarter of 2018, but 0.9 percent higher than the third quarter of 2019.

This resulted in the global chip market for the full year of 2019 being worth $412.1 billion, a decrease of 12.1 percent compared to the 2018 total.

Evidence of the return to growth could be seen in the China market which recorded an averaged December sales total of $12.81 billion up 0.8 percent from the same period a year before. All the other regions showed declines year-on-year.

Three-month average of chip sales by geographic region for December and November 2019. Source: SIA/WSTS.

"The global market rebounded somewhat during the second half of 2019, increasing slightly from Q3 to Q4, and modest annual growth is projected for 2020. Policies that promote free trade and ensure open access to global markets are needed for continued recovery in the coming months," said John Neuffer, CEO of the SIA, in a statement.

In 2020 and 2021, global sales are expected to increase by 5.9 percent and 6.3 percent, respectively.

Monthly data is given by the SIA as a three-month average although the source of the data, the World Semiconductor Trade Statistics organization (WSTS), 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.

Related links and articles:

www.semiconductors.org

News articles:

SIA revises October chip market size

Chip market crawled forward in October

Chip market is stuck in the doldrums

WSTS raises chip market forecast for 2020

Global chip market up sequentially in August


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