Semiconductor sales take a tumble

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Figures from the Semiconductor Industry Association (SIA) show that the worldwide sales of semiconductors were $32.1billion in April 2019, down 14.6 percent year-on-year and off 0.4 percent compared to the preceding month.

In addition the World Semiconductor Trade Statistics (WSTS ) organisation has released projected figures for annual global sales and expects then to fall 12.1 percent in 2019, before increasing 5.4 percent in 2020. SIA represents U.S. leadership in semiconductor manufacturing, design, and research.

“The global semiconductor market continued to sputter in April, as year-to-year and month-to-month sales remained negative,” said John Neuffer, SIA president and CEO. “Sales were down compared to last year across all major regional markets and semiconductor product categories. Global sales are projected to decrease by 12 percent this year, then rebound somewhat with moderate growth expected next year.”

Regionally, sales increased slightly on a month-to-month basis in Japan (2.5 percent) and China (1.8 percent), but decreased in Europe (-1.2 percent), Asia Pacific/All Other (-2.0 percent), and the Americas (-3.0 percent). On a year-to-year basis, sales were down across all regional markets: Europe (-8.0 percent), Asia Pacific/All Other (-10.7 percent), China (-10.9 percent), Japan (-10.9 percent), and the Americas (-29.5 percent).

The SIA has endorsed the WSTS Spring 2019 global semiconductor sales forecast, which projects the industry’s worldwide sales will total $412.1 billion in 2019. This represents a 12.1 percent decrease from the 2018 sales total of $468.8, which was the industry’s highest-ever annual total.

WSTS projects year-to-year decreases across all regional markets for 2019: Europe (-3.1 percent), Asia Pacific (including China) (-9.6 percent), Japan (-9.7 percent), and the Americas (-23.6 percent).

In 2020, the global market is projected to recover posting moderate growth of 5.4 percent.

WSTS tabulates its semi-annual industry forecast by convening an extensive group of global semiconductor companies that provide accurate and timely indicators of semiconductor trends.