
Chip market is stuck in the doldrums
The three-month average of worldwide sales of chips in September 2019 was $35.57 billion, down 14.6 percent from September 2018 but up 3.4 percent from August 2019. The three-month average for September is a proxy for the third quarter which was up 8.2 percent compared with the second quarter.
If anything this is less than the seasonal 3Q bounce that usually marks the building of inventory for the holiday season.
The market remains stuck in the doldrums caused by the end of a high-priced memory cycle, a slowing of consumer electronics replacement cycles and lingering US-China trade tension. All the major geographical semiconductor markets declined year-on-year with the America’s region showing the most decline and Europe the least.
John Neuffer, SIA CEO, said in a statement: “While sales remain well behind the record totals from last year, month-to-month sales increased for the third consecutive month in September and were up across all major product categories. Month-to-month sales also increased across all regional markets, with China and the Americas leading the way.”
Three-month average of chip sales by geographic region for September and August 2019. Source: SIA/WSTS.
John Neuffer, SIA CEO, said in a statement: “While sales remain well behind the record totals from last year, month-to-month sales increased for the third consecutive month in September and were up across all major product categories. Month-to-month sales also increased across all regional markets, with China and the Americas leading the way.”
Monthly data is given by the SIA as a three-month average although the source of the data, the WSTS organization, tracks actual 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:
Global chip market up sequentially in August
Faint signs of chip market turn as slump continues
Chip market weakness lingers in second quarter
US pain continues as chip market decline deepens
