Europe last to know about chip market downturn

March 05, 2019 //By Peter Clarke
Europe last to know about chip market downturn
European three-month averaged sales numbers grew in January on annual basis, although only by 0.2 percent. However, that was better than all other regions, which fell, according to numbers provided by the Semiconductor Industry Association (SIA) reporting figures compiled by the World Semiconductor Trade Statistics (WSTS) organization.

The three-month averaged global chip market for the month of January 2019 was $35.47 billion, down 5.7 percent annually and down 7.2 percent sequentially.

The America's region showed particular weakness with a 15.3 percent collapse in sales year-on-year, while China, which is responsible for about a third of the chip market was down 3.2 percent on annual basis. Asia-Pacific region excluding China and Japan, which is responsible for almost another third was down 3.8 percent on an annual basis.

Three-month average of chip sales by geographic region for December 2018 and January 2019. Source: SIA/WSTS.

"Global semiconductor sales got off to a slow start in 2019, as year-to-year sales decreased in January for the first time since July 2016 and month-to-month sales were down across all major product categories and regional markets," said John Neuffer, SIA CEO, in a statement. "Following record sales over the last three years, reaching $469 billion in 2018, it seems clear the global market is experiencing a period of slower sales. The long-term outlook remains promising, however, due to the ever-increasing semiconductor content in a range of consumer products and future growth drivers such as artificial intelligence, virtual reality, the Internet of Things, and 5G and next-generation communications networks."

Monthly data is given by the SIA as a three-month average 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.

Related links and articles:

www.semiconductors.org

www.wsts.org

News articles:

US dips in chip market's fourth quarter flatness

Chip market growth dips below 10 percent

Chip market growth continues to soften

Global chip market to return to low growth in 2019


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