The global chip market continued to contract in October, on an annual basis, with China’s annual fall now recorded at 16 percent, according to the Semiconductor Industry Association.
The Americas and European markets nudged upwards on a sequential basis but all other regions also contracted sequentially as well as annually, according to the three-month-moving-average sales figures, compiled by World Semiconductor Trade Statistics organization.
The global chip market in October was 4.6 percent smaller than a year before driven down by the strong influence of shrinking markets in China and Asia-Pacific. These are being hurt by exposure to falling consumer spending and the effects of zero-covid lockdowns on Chinese output.
Some observers claim that western geographic regions can keep growing due to their greater exposure to industrial, automotive and communications markets. However, the global macroeconomic signs indicate that 2023 is likely to be a tough year across the board.
One positive indicator to be found in the SIA numbers is the reduced sequential decline for successive quarters. The 3Q22 over 2Q22 fall of 6.3 percent reported in September has reduced in October to a 4.4 percent decline for Oct/Sept/Aug over July/June/May.
The Americas became the most vibrant region in October reporting 11.4 percent growth compared with a year before, approximately the same as in September. Meanwhile Europe relinquished its unusual position as the strongest growing region as sales growth slipped back to 9.3 percent in October from 12.4 percent in September.
“Global semiconductor sales ticked down again in October, with sales decreasing on a year-to-year basis by the largest percentage since December 2019,” said John Neuffer, CEO of SIA, in a statement. “Sales into the Americas market stood out as a bright spot in October, increasing by double-digits compared to the same month last year.”
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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