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Asia Pacific, China register growth in global chip market

Posted: 08 Jul 2015 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor? chip sales? chip market?

The Semiconductor Industry Association (SIA) released figures for May showing the distinct difference between the growth happening in the semiconductor market in Asia Pacific, China and the Americas regions and the decline going on in Japan and Europe.

SIA is also closely monitoring the China government because it is expected to pump as much as $10 billion this year into bolstering its local chipmakers in an effort to be more self-sufficient.

Globally, the three-month average of the semiconductor market for May was $28.20 billion, up 5.1 per cent compared with the same period in 2014. The weak performance by Europe and Japanwith the two regions showing around a 10 per cent contraction in the market sizeis largely due to weakness of the Euro and the Yen against the U.S. dollar, the currency in which chip sales is traditionally measured.

The three-month average of chip sales in Europemeasured in U.S. dollarsfell by 7.8 per cent in May compared with the same period a year before. Japan's chip market in May fell by 11.8 per cent compared with a year before. Both currencies have weakened against the U.S. dollar by more than 15 per cent against Spring 2014. This implies that when measured in local currencies Europe and Japan could have registered modest year-on-year growth.

Chip sales

Three-month average chip sales in March and April 2015 by geographical region. (Source: SIA/WSTS)

In contrast, the Americas region led a charge of 11.4 per cent growth in May closely followed by China with 9.5 per cent growth and Asia-Pacific/Rest of the World with 8 per cent growth.

Monthly data is given by the SIA as a three-month average, although the WSTS organisation tracks actual monthly data. The SIA 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.

John Neuffer, CEO of the SIA, said he expects modest growth to continue for the remainder of 2015 and beyond.

- Peter Clarke
??EE Times Europe

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