February sales slumped by more than 20% in annual terms, an industry association says
Worldwide sales of microchips declined 4% in February in monthly terms to $39.7 billion, the Semiconductor Industry Association (SIA) reported on Thursday.
The figure is 20.7% lower than in February 2022, when sales totalled $50 billion, according to the SIA.
“Global semiconductor sales continued to slow in February, decreasing year-to-year and month-to-month for the sixth consecutive month,” SIA President and CEO John Neuffer said.
“Short-term market cyclicality and macroeconomic headwinds have led to cooling sales, but the market’s medium- and long-term prospects remain bright, thanks to growing demand across a range of end markets,” Neuffer added.
The report showed that regionally, year-to-year sales increased slightly in February in Japan (1.2%), but declined in Europe (-0.9%), North and South America (-14.8%), China (-34.2%) and the rest of the world (-22.1%). Month-to-month sales were down across all regions, the SIA noted.
The association represents 99% of the US semiconductor industry by revenue and nearly two thirds of non-US chip firms.
Semiconductors are used in a host of modern devices, from smartphones to self-driving cars, washing machines, advanced computing and guided missiles. The majority of microchips are made in East Asia, with Taiwan producing more than 60%, and much of the remainder split between South Korea, Japan, the US, and China.
This article was originally published by RT.