China bounce lifts global chip market, raises outlook for 2024
The global chip market bounced back strongly to annual growth in November 2023, according to three-month-averaged sales figures from the Semiconductor Industry Association.
The market grew to US$47.98 billion, up 5.3 percent compared with US$45.58 percent in November 2022.
The China and Asia Pacific regions performed better than expected jumping to strong annual growth in November. The Americas region also turned positive on an annual basis leaving Japan as the only geographic region yet to return to growth.
It now appears likely that 4Q23 will show strong year-on-year growth and this provides a strong indicator for growth in 2024.
China’s annual growth of 7.6 percent growth in November was a contrast to the contraction of 2.4 percent reported in October. Similarly, Asia Pacific went from marginal growth of 0.4 percent in October to 7.1 percent annual growth in November.
On a sequential basis the European and Japanese chip markets turned down leaving the market growth being driven by China, Asia Pacific and the Americas.
Japan’s chip market continues to suffer and region had three-month averaged sales for November of US$3.91 billion, down 2.8 percent from a year before. While China and Asia Pacific together were responsible for more than 50 percent of chip sales Japan is now responsible for just over 8 percent.
Three-month average of chip sales by geographic region for November and October 2023. Source: SIA/WSTS.
“Global semiconductor sales increased on a year-to-year basis in November for the first time since August 2022, an indication that the global chip market is continuing to gain strength as we enter the new year,” said John Neuffer, CEO of the SIA, in a statement. “Looking ahead, the global semiconductor market is projexted to experience double-digit growth in 2024.”
Monthly data is given by the SIA as a three-month average although the source of the data, WSTS, tracks monthly data. 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.
Related links and articles:
News articles:
Europe drives global chip market to the brink of growth
Europe beats US, Asia in Q3 chip market growth
European chip market cools as Americas returns to growth
Chip market recovery on track but Europe, Japan disappoint
Future Horizons drops bearish stance, lifts chip market forecast
Semiconductor market has turned the corner, says analyst
European growth leads a turn in the global chip market
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
