Americas region saw huge chip market growth in May

Market news | July 7, 2024

By Peter Clarke

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The Americas region chip market was worth US$14 billion as a three-month average in May, up 43.6 percent from the same period a year before, according to the Semiconductor Industry Association.

This together with a similar but smaller uptick in the Chinese market more than compensated for a fall in the European chip market and helped the global chip market climb to US$49.15 billion average for the months of March, April and May. The global market was up by 19.3 percent compared with the same period a year before.

This remains consistent with a semiconductor market boom driven by returning consumer confidence and AI but sluggishness in automotive, industrial and infrastructure markets (see WSTS predicts 2024 chip market will grow 16 percent).

Europe, which is oriented towards these sectors, saw its market contract by 9.6 percent while Japan suffered a slightly better fate contracting by 5.8 percent.

Three-month average of chip sales by geographic region for May and April 2024. Source: SIA/WSTS.“

The global semiconductor market has grown on a year-to-year basis during each month of 2024, and year-to-year sales in May increased by the largest percentage since April 2022,” said John Neuffer, CEO of the SIA, in a statement.

Monthly data is given by the SIA as a three-month average although the source of the data, WSTS, tracks sales monthly basis. 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.