Europe was the only major geographic region to show chip market growth in 3Q23 as weakness persisted in the US and Asia, according to latest trade figures from the Semiconductor Industry Association.
The three-month averaged chip market for September – a proxy for Q3 – was US$44.89 billion, down 4.5 percent compared with 3Q22. However, the global contraction was less than the 6.8 percent reported for August (European chip market cools as Americas returns to growth). This year-on-year averaged market decline compares with an 11.8 percent decline in July and a 17.3 decline in June, showing a dynamic situation. The SIA reports numbers collected by the World Semiconductor Trade Statistics (WSTS) organization.
Compared with the previous month Europe’s growth increased while the Americas’ region slipped – against the previous trend – back into negative territory. Japan’s contracting market also deteriorated. The slow improvement in China and Asia-Pacific, but still without annual growth, kept the global market in contraction.
On a monthly sequential basis all geographic regions grew with the exception of Japan. In this view of the data Asia-Pacific excluding Japan and China is the best performing region followed by Europe
There are signs that by year-end the global market could be at parity with 2022 with an expectation of growth in 2024 as memory prices increase.
“Global semiconductor sales increased on a month-to-month basis for the seventh consecutive time in September, reinforcing the positive momentum the chip market has experienced during the middle part of this year,” said John Neuffer, CEO of the SIA, in a statement. He added that the long-term outlook for semiconductor demand remains strong.
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.
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