European chip market cools as Americas returns to growth

European chip market cools as Americas returns to growth

Market news |
By Peter Clarke

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The European chip market’s averaged annual growth declined in August but the Americas region returned to annual growth for the first time for nine months, according to latest trade figures from the Semiconductor Industry Association.

The markets in the three other regions monitored – Japan, China and Asia-Pacific/RoW – all contracted but at lower rates than in the previous months. As a result the global chip market’s contraction was much reduced from the previous month.

Europe has led the global chip market out of recession but as other regions head towards growth it appears Europe is feeling the effect of weak global economics.

The three-month average of global chip sales in August was US$44.04 billion, down 6.8 percent from a year before according to figures from the  SIA, which reports numbers collected by the World Semiconductor Trade Statistics (WSTS) organization. This year-on-year averaged market decline compares with 11.8 percent decline in July and a 17.3 decline in June.

Americas on the up

The Americas region’s three-month averaged market in August was US$11.51 billion an increase of 0.3 percent compared with a year before. This is the first growth recorded in the Americas market since November 2022. The return to growth has been rapid, outperforming expectations.

The major markets in Chinese and Asia-Pacific regions represent just over 50 percent of the market in aggregate and although still contracting year-on-year they both grew sequentially and are on course to be showing growth in 4Q23.

The Japanese market has been languishing and continues to do so. It is now by some way the smallest region that WSTS monitors and represents less than 10 percent of the market.

Three-month average of chip sales by geographic region for August and July 2023. Source: SIA/WSTS.

“Global sales were down again in August compared to last year, but the year-to-year decrease was smaller than at any point since October 2022, providing optimism for continued momentum in the months ahead,” said John Neuffer, CEO of SIA, in a statement.

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:

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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

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