KUALA LUMPUR (June 8): Global sales of semiconductors fell 6.2% year-on-year in April this year to US$25.8 billion (from US$27.6 billion) and was down 1% month-on-month (from US$26.1 billion), according to the US-based Semiconductor Industry Association (SIA).
In a statement on its website yesterday, the SIA said a new World Semiconductor Trade Statistics (WSTS) forecast projects decreased annual semiconductor sales in 2016, followed by slight market growth in 2017 and 2018.
SIA president and CEO John Neuffer said global semiconductor sales decreased marginally in April, continuing a recent trend of market sluggishness driven by soft demand and a range of macroeconomic headwinds.
“Despite a cumulative decrease across all product categories, year-to-year sales of microprocessors and analog products increased modestly, perhaps foreshadowing stronger sales ahead.
“The latest industry forecast suggests global sales may indeed rebound somewhat in the second half of 2016, but still fall short of last year’s total.
“The global market is projected to grow slightly in 2017 and 2018,” he said.
The SIA said that regionally, year-to-year sales increased in Japan (2.2%) and China (0.3%), but decreased in Asia Pacific/All Other (-8.2%), Europe (-8.6%), and the Americas (-14.8%).
It said that compared with last month, sales were up slightly Japan (0.2%) and Asia Pacific/All Other (0.1%), but down in Europe (-0.8%), China (-1.8%), and the Americas (-2.2%).
Additionally, the SIA endorsed the WSTS Spring 2016 global semiconductor sales forecast, which projects the industry’s worldwide sales will be US$327.2 billion in 2016, a 2.4% decrease from the 2015 sales total.
The SIA said that WSTS projects year-to-year decreases across all regional markets for 2016: Europe (-0.1%), Asia Pacific (-1.2%), Japan (-1.7%), and the Americas (-7.3%).
It said that on the positive side, WSTS predicts growth in 2016 for several semiconductor product categories, including discretes, analog, and MCU products.
The SIA said that beyond 2016, the semiconductor market is expected to grow at a modest pace across all regions.
“WSTS forecasts 2.0% growth globally for 2017 (US$333.7 billion in total sales) and 2.2% growth for 2018 (US$340.9 billion),” it said.
WSTS tabulates its semi-annual industry forecast by convening an extensive group of global semiconductor companies that provide accurate and timely indicators of semiconductor trends.