The Semiconductor Industry Association (SIA) has reported that global semiconductor industry sales reached $526bn in 2023.

This, however, represented a fall of 8.2% when compared to the 2022 total of $574.1bn, which was the industry’s highest-ever annual total.

Sales picked up during the second half of 2023 so that in the fourth-quarter sales were ahead over 11 per cent at $146.0 billion on 2022, and 8.4% higher than the total for the third quarter of 2023.

Global sales in December 2023 were $48.6bn, an increase of 1.5% compared to November 2023.

“Global semiconductor sales were sluggish early in 2023 but rebounded strongly during the second half of the year, and double-digit market growth is projected for 2024,” said John Neuffer, SIA president and CEO. “With chips playing a larger and more important role in countless products, the long-term outlook for the semiconductor market is extremely strong. Advancing government policies that invest in R&D, strengthen the semiconductor workforce, and reduce barriers to trade will help the industry continue to grow and innovate for many years to come.”

On a regional basis, Europe was the only regional market that experienced annual growth in 2023, with sales there increasing 4.0%.

Annual sales into all other regional markets decreased in 2023: Japan (-3.1%), the Americas (-5.2%), Asia-Pacific/All Other (-10.1%), and China (-14.0%).

Sales for the month of December 2023 increased compared to November 2023 in China (4.7%), the Americas (1.8%), and Asia Pacific/All Other (0.3%), but decreased in Japan (-2.4%) and Europe (-3.9%).

Several semiconductor product segments stood out. Sales of logic products reached $178.5bn in 2023, making it the largest product category by sales.

Memory products were second in terms of sales, totalling $92.3 billion. Microcontroller units (MCUs) grew by 11.4% to a total of $27.9 billion. And sales of automotive ICs grew by 23.7% year-over-year to a record total of $42.2 billion.

Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organisation and represent a three-month moving average.