Going down: Annual chip market growth continued to soften in May
Recent trends in the global chip market continued in May with the Americas region maintaining strong growth while Chinese market annual growth fell again.
The global chip market was worth $51.8 billion in May, according to the European Semiconductor Industry Association. The sales figure is based on the three-month average of actual sales in May, April and March, compiled by World Semiconductor Trade Statistics (WSTS) organization.
The annual growth in the chip market in China has declined from 21.8 percent in February to 17.3 percent in March, 13.3 percent in April and 9.1 percent in May. Given the size of the Chinese market the 3MMA nature of the data this movement is extreme. China’s decline is probably partly due to a number of city lockdowns and work suspensions during May and preceding months.
China sales of semiconductors represent about one-third of the global market and so China’s changes have helped bring down global chip market annual growth. This has moved from 32.4 percent in February to 18.0 percent in May.
The Americas region annual growth stayed high at 36.9 percent but it is notable that it went below 40 percent for the first time in several months.
Europe and Japan achieved annual growth of 16.1 and 19.8 percent, respectively.
Monthly data is given by the SIA as a three-month average although the source of the data, World Semiconductor Trade Statistics, 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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