Chips Fall on Soft Demand

Worldwide semiconductor sales value was $26 billion in May, says the Semiconductor Industry Association (SIA): a 0.4% MoM increase but 7.7% YoY fall. Sales held steady compared to last month in all regions; China led with 3.1% growth.

Although the small uptick was the largest MoM growth in the last six months, the overall semiconductor market remained “somewhat stagnant,” said SIA president and CEO John Neuffer. He blamed this on soft demand and unfavourable macroeconomic conditions.

“Most regional markets have struggled to gain traction in 2016,” Neuffer said, “with the Americas falling well behind sales posted through the same point last year. Sales of analogue products were a bright spot in May, notching both month-to-month and year-to-year increases.”

Sales were up compared to last month in China, as mentioned above. The Americas (-0.1%), Europe (-0.8%), APAC/All Other (-0.8%) and Japan (-1.8%) were down, however. YoY sales rose slightly (0.4%) in Japan, but were down in China (-0.5%), Europe (-8.8%), APAC/All Other (-11.5%) and the Americas (-15%).

Semiconductor Sales by Region, May 2016 ($ Billions)
Market May 2016 May 2015 YoY Change
Americas 4.78 5.62 -15.0%
Europe 2.62 2.87 -8.8%
Japan 2.55 2.54 0.4%
China 8.04 8.08 -0.5%
APAC/All Other 7.96 9 -11.5%
Total 25.95 28.11 -7.7%