The global semiconductor market is in a period of slowdown in sales, but the outlook is still full of hope

  On March 7, after three years of record sales of chips, the industry generally expected the semiconductor industry to enter a downturn.

The World Semiconductor Statistical Organization (WSTS) pointed out that chip sales fell sharply in January this year, and since July 2016, chip sales in the first month have declined for the first time.

John Neuffer, president and CEO of the Semiconductor Industry Association, said last month that Sino-US trade wars, falling memory chip prices and China's economic slowdown may lead to a slowdown in chip sales, or even a contraction.

Neuffer pointed out that semiconductor sales began to slow down in 2019. Compared with December 2018, sales in all major product categories and regional markets declined, and the global market seems to be experiencing a slowdown in sales.

Semiconductor sales hit a record high for three consecutive years, but after a record of 13.7% and $468.8 billion in 2018, it seems to have reached the upper limit. WSTS latest expects that semiconductor sales will grow 2.6% this year, but most independent analysts Not so optimistic.

According to the WSTS report, the three-month average rolling value of chip sales in January fell to $35.5 billion, down 5.7% year-on-year and 7.2% month-on-month. The organization also pointed out that the annual rate of chip sales in the Americas fell by 15.3% in January. The rate dropped by 13%.

In spite of the slowdown in sales, Neuffer believes that the long-term prospects of the industry are still promising, as semiconductor products will only continue to grow as consumer products include growth drivers such as AI, virtual reality, the Internet of Things, 5G and next-generation communication networks.