A demand slump triggered by high inflation and macroeconomic headwinds continues to batter global chip sales.
Global semiconductor industry sales fell by 9.2% year on year in the month of November to $45.5 billion as compared to $50 billion a year ago.
Data from the Semiconductor Industry Association (SIA), a Washington-based trade group that represents 99% of the US chip industry, showed that the industry chip sales declined for the third consecutive month with a decrease of 2.9% compared to the October 2022 total of $46.9 billion.
Overall global demand started to contract in September last year, when total sales decreased 3% year on year to $47 billion.
“Global semiconductor sales decreased in November, largely due to market cyclicality and macroeconomic headwinds,” said John Neuffer, SIA president and CEO. “Sales into the Americas were up compared to November 2021, while sales into China decreased sharply on a year-to-year basis.”
China’s industry sales recorded the largest decline in the world. Semiconductor chip sales in China fell by 21.2% on an annual basis to $13.4 billion in November, as the economic slump continues to beat the global demand for chips. China was the world’s largest semiconductor market in 2021, with total sales of $192.5 billion. China’s month-to-month sales fell by 5.3%.
Regionally, year-to-year global chip sales increased in November in the Americas by 5.2%, in Europe by 4.5%, and in Japan by 1.2%. Asia Pacific/All Other recorded a decline of 13.9%. Month-to-month sales were down across all regions. Europe recorded a 1% decline, Japan’s sales fell by 1.2%, the Americas recorded a 1.4% fall while Asia Pacific/All Other reported a 3% decline.
The World Semiconductor Trade Statistics (WSTS) released its new semiconductor market forecast generated in November 2022. The report stated that the global semiconductor market is expected to witness a single-digit slow growth of 4.4% in 2022, followed by a decline of 4.1% in 2023.