News

Global chip sales have declined for the third consecutive quarter, and can it be reversed in the second half?

On the evening of August 5, the latest report of the Semiconductor Industry Association (SIA) showed that global chip sales in June fell again by 16.8% year-on-year to US$32.7 billion, which was lower than the same period last year for the sixth consecutive month.

According to the report, global chip sales in the second quarter also fell by 16.8% to just $98.2 billion. Since the fourth quarter of last year, the semiconductor industry's inventory level has been generally high, and the first half of this year is a traditional off-season. A continuous decline is also expected.

John Neuffer, president and CEO of the Semiconductor Industry Association of the United States, said in a statement that the global semiconductor market is still in a downturn in sales in the middle of this year. The revenue as of June was nearly 15% lower than that of the middle of last year.

From a regional perspective, Japan’s sales rose by 2.6%, but the Americas region fell by 0.7%, Asia Pacific and all other regions fell by 0.7%, China also fell by 1.5%, and Europe fell by 2.6%.

According to the SIA, sales in all regional markets have declined compared to the same period last year: Europe (-10.9%), Japan (-12.8%), Asia Pacific/All others (-13.7%), China (-13.9%) and the Americas ( -29.5%).

However, the industry generally believes that after entering the third quarter of the peak season, inventory can be completed as soon as possible, and at the end of this year, semiconductor sales can be equal to last year.

In addition, ICInsights also pointed out that due to the cyclical nature of the semiconductor industry, the IC market has never experienced a four-quarter decline, so ICInsights expects the IC market in the third quarter of this year is likely to rebound.