Global chip market growth halted in 1Q24

Global chip market growth halted in 1Q24

Market news |
By Peter Clarke

Global chip market growth subsided in March, according to the Semiconductor Industry Association as economic headwinds started to win out over any AI boost to chip pricing.

The three-month moving average of the value of the global chip market was US$45.91 billion, down sequentially by 0.6 percent compared with February but up 15.2 percent compared with March 2023.

As the SIA reports figures as a three-month moving average based on data collected by the World Semiconductor Trade Statistics organization these figures are proxies for the 1Q24 and 1Q23. The drop in growth suggests that 2024 could demonstrate more limited growth than previously forecast but follows on from negative indicators from TSMC (see TSMC trims semiconductor, foundry forecast for 2024 and Future Horizons Future Horizons sounds warnings over chip market rebound).

In the 1Q24 global chip sales totalled US$137.7 billion, an increase of 15.2 percent compared to the first quarter of 2023 but 5.7 percent less than 4Q23.

Most of semiconductor market analysts are still forecasting annual growth for the 2024 global chip market of between 13 and 20 percent but the latest data may indicate that double-digit percentage growth is not sustainable.

In the latest data the North America and China regions, with their exposure to consumer electronics, have turned in continuing growth. However, Europe, Japan contracted while the Rest of the World showed weaker growth and these dragged on the overall market.

The Americas regional market – predominantly the US – was up by 26.3 percent on annual basis, a marked improvement on February’s figure of 22.0 percent. China is the largest and fastest growing geographical market. China’s 3MMA for March was US$14.14 billion.

Three-month average of chip sales by geographic region for March and February 2024. Source: SIA/WSTS.

“First-quarter global semiconductor sales were significantly higher than the total from the first quarter of last year, but sales slipped somewhat on a month-to-month and quarter-to-quarter basis, reflecting normal seasonal trends,” said John Neuffer, CEO of the SIA, in statement. “The market is expected to continue to grow during the remainder of the year, with double-digit annual growth projected for 2024,” he added.

Monthly data is given by the SIA as a three-month average although the source of the data, WSTS, tracks sales monthly basis. 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 growth crept higher in February

TSMC trims semiconductor, foundry forecast for 2024

Future Horizons sounds warnings over chip market rebound

US, China driving global chip market higher

Europe, Japan drag on December’s buoyant global chip market

China bounce lifts global chip market, raises outlook for 2024

If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :    eeNews on Google News


Linked Articles