Europe drives global chip market to the brink of growth
The Asia-Pacific and European regions showed annual growth in the October 2023 sales numbers from the Semiconductor Industry Association. This brings the global chip market close to growth for the first time since September 2022.
The European chip market has been growing for several months and has now been joined in growth by the substantial Asia-Pacific region that excludes Japan and China.
The three-month averaged chip market for October was US$46.62 billion, down 0.7 percent compared with the same month in 2022 and an increase of 3.9 percent compared with September 2023.
The year-on-year declines are diminishing rapidly from 4.5 percent reported for September (see Europe beats US, Asia in Q3 chip market growth), 6.8 percent in August and 11.8 percent decline in July. The SIA reports numbers collected by the World Semiconductor Trade Statistics (WSTS) organization.
Elsewhere markets are still contracting on an annual basis although less quickly than in previous months. All the geographic markets grew on an annual basis.
Japan continues to be the laggard with three-month averaged sales for October of US$3.93 billion, down 3.1 percent from a year before. The Chinese market was reckoned to be US$13.85 billion in October, 2.5 percent smaller than a year before while the Americas region at US12.13 billion contracred by 1.6 percent.
The clear trend is that in 4Q23 the global chip industry will show annual growth
Three-month average of chip sales by geographic region for October and September 2023. Source: SIA/WSTS.
“The global semiconductor market grew on a month-to-month basis for the eighth consecutive time in October, demonstrating clear, positive momentum for chip demand as 2023 winds down,” said John Neuffer, CEO of SIA, in a statement. “Moving forward, we forecast year-end sales for 2023 will be down compared to 2022, but the global semiconductor market is projected to rebound strongly next year with double-digit growth projected for 2024.”
Monthly data is given by the SIA as a three-month average although the source of the data, WSTS, tracks monthly data. The SIA and other regional semiconductor industry bodies opt to use averaged data because it evens out the actual data that typically shows troughs at the beginnings of quarters and peaks at the ends of quarters.
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Europe beats US, Asia in Q3 chip market growth
European chip market cools as Americas returns to growth
Chip market recovery on track but Europe, Japan disappoint
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European growth leads a turn in the global chip market
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