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2016 looms the Global Semiconductor Sales, Dims in April

Semiconductor Industry Association

Lately, our previous market research article sought a tussle in semiconductor worldwide revenue, apparently to nurture the speculations; another report advocates the slump in the global sales of the semiconductor.

Now, The Semiconductor Industry Association (SIA) announced worldwide sales of semiconductors reached $25.8 billion for the month of April 2016 which a decrease of 1.0 percent from last month’s total of $26.1 billion and 6.2 percent lower than the April 2015 total of $27.6 billion.

The compilation of quarterly monthly sales numbers by the World Semiconductor Trade Statistics (WSTS) forecast projects decreased annual semiconductor sales in 2016, followed by slight market growth in 2017 and 2018.

Citing on the disseminated report, John Neuffer, president and CEO, Semiconductor Industry Association 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.”

Key Nuggets include

  • Regionally, year-to-year sales increased in Japan (2.2 percent) and China (0.3 percent), but decreased in Asia Pacific/All Other (-8.2 percent), Europe (-8.6 percent), and the Americas (-14.8 percent). Compared with last month, sales were up slightly Japan(0.2 percent) and Asia Pacific/All Other (0.1 percent), but down in Europe (-0.8 percent), China (-1.8 percent), and the Americas (-2.2 percent).
  • Additionally, SIA today endorsed the WSTS Spring 2016 global semiconductor sales forecast, which projects the industry’s worldwide sales will be $327.2 billion in 2016, a 2.4 percent decrease from the 2015 sales total.
  • WSTS projects year-to-year decreases across all regional markets for 2016: Europe (-0.1 percent), Asia Pacific (-1.2 percent), Japan (-1.7 percent), and the Americas (-7.3 percent). On the positive side, WSTS predicts growth in 2016 for several semiconductor product categories, including discretes, analog, and MCU products.

Beyond 2016, the semiconductor market is expected to grow at a modest pace across all regions. The research firm forecasts 2.0 percent growth globally for 2017 ($333.7 billion in total sales) and 2.2 percent growth for 2018 ($340.9 billion).

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