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Sluggish chip sales predicted for 2016

Posted: 08 Mar 2016 ?? ?Print Version ?Bookmark and Share

Keywords:Semiconductor Industry Association? chip sales? WSTS? semiconductor?

Semiconductor sales were off to a slow start across the board this year, which is primarily due to weakening demand and persistent economic headwinds, according to the latest data from the Semiconductor Industry Association (SIA) trade group.

Chip sales declined on both a sequential and annual basis across all regions except China, where sales increased compared with January 2015. It marked the third straight month that China was the only region to post YoY growth in chip sales.

Global chip sales totaled $26.9 billion in January, down three per cent from the previous month and down six per cent compared with January 2015, according to the sales numbers, compiled by the World Semiconductor Trade Statistics (WSTS) organisation. The sales numbers for the month represent a three-month rolling average.

John Neuffer

Figure 1: Neuffer: Chip sales to show modest growth in 2016

January sales were down sequentially across all regions and all product categories, the SIA said. Sales to the Americas region were particularly light, declining by six per cent from December and by 17 per cent compared with January 2015, the SIA said.

John Neuffer, president and CEO of the SIA, said the organisation continues to project modest growth in chip sales in 2016.

In addition to declining sequentially, chip sales in Europe, Japan and the Asia-Pacific region also showed YoY declines. Chip sales to China, while declining slightly sequentially, did increase by four per cent compared with January 2015.

The WSTS forecast for 2016 calls for semiconductor sales to grow slightly to $336 billion, up from $335 billion in 2015. The forecast calls for sales to increase by an additional three per cent in 2017, reaching $347 billion. Growth in 2016 is expected to be driven by sensors, microprocessors and logic, while all product categories and regions are forecast to grow moderately in 2017.

January 2016 chip sales

Figure 2: Global chip sales totaled $26.9 billion in January, down three per cent from the previous month and down six per cent compared with January 2015, according to the sales numbers compiled by WSTS.

- Dylan McGrath
??EE Times





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