The global three-month averaged chip market in June was worth $26.36 billion, down 5.8 percent from the same period a year before, according to the European Semiconductor Industry Association (ESIA) reporting numbers from the World Semiconductor Trade Statistics (WSTS) organization. The year-on-year fall was smaller than the 7.7 percent decline recorded in May (see Falling sales raise prospect of chip market recession).

In June the Asia-Pacific region, which is responsible for more than 60 percent of the global chip market continued to show an annual decline in the three-month average for chip sales, increasing the likelihood that 2016 will be a declining market for semiconductor sales.

The aggregate global chip market for the first half of 2016 is 5.8 percent smaller than where it was in 2016 although this could change if the industry can pull out a bumper third quarter, the quarter that is seasonally largest as vendors prepare for the winter consumer buying season that runs from US Thanksgiving through Christmas and on to the Chinese New Year.

However continued weakness in the PC and smartphone markets and the failure of a wearable or IoT market to yet take off significantly makes that unlikely.

Three-month average of sales for June and May 2016. Source: ESIA/WSTS.

The Americas region showed three-month averaged sales in May of $4.93 billion, down 10.8 percent from the same period a year before. Europe with $2.67 billion of three-month averaged sales and Asia-Pacific including China with $16.22 billion were down 5.5 and 5.0 percent respectively, compared with the same period a year before.

All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. Monthly data is given by the ESIA as a three-month average, although the WSTS organization tracks actual monthly data. The ESIA and other regional semiconductor industry bodies opt to use averaged data because it evens out the actual data that typically show troughs at the beginnings of quarters and peaks at the ends of quarters. 

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