The annual growth of the global chip market dropped to 7.3 percent in July, down from 13.3 percent in June and 18.0 percent in May, according to the Semiconductor Industry Association, reporting figures compiled by the World Semiconductor Trade Statistics organization.

The sharp reduction in annual growth is the more unusual because these percentages are based on three-month moving averages. The July 3MMA global sales figure of $49.01 billion includes the downward correction of figures from the previous month with approximately US$600 million knocked of the average monthly sales of Asia-Pacific region including China.

Fall in global chip market growth accelerates


Three-month average of chip sales by geographic region for July and June 2022. Source: SIA/WSTS.

The Chinese chip market is now 1.8 percent smaller than it was a year ago and the Asian-Pacific region excluding China stands just 4.1 percent higher. However, because China and the Asia-Pacific region now account for 60 percent of the global chip market they are the major contribution to the global average.

US chip market growth, which had been phenomenally strong with 40 percent annual growth only recently fell from 29 percent in June to 20.9 percent in July. Japan fell from 16.1 percent annual growth in June to 13.1 percent growth in July.

Europe bucked against this global trend and although 3MMA chip sales were down 1.1 percent sequentially its annual growth ticked up from 12.4 percent in June to 15.2 percent in July.

John Neuffer, CEO of the SIA, said market growth has slowed substantially in recent months, with year-to-year sales increases dropping into the single digits for the first time since December 2020.

Monthly data is given by the SIA as a three-month average although the source of the data, World Semiconductor Trade Statistics, 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.;

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