According to statistics released by the Semiconductor Industry Association, global semiconductor sales fell 0.5% month-on-month in September and 3% year-on-year as demand continued to decline in the face of multiple macroeconomic headwinds. .
According to the SIA report, September chip purchases in the Americas region rose 11.5% compared to the same month in 2021 to just over $12 billion, while Europe and Japan saw increases to $4.53 billion and $4.05 billion respectively. dollars respectively. . However, this gain was more than offset by a 14.4% drop in the mainland China market to $14.43 billion over the same time period, as well as a 7.7% decline to $11.97 billion in all other markets.
The drop is the first year-over-year slowdown since January 2020, according to a statement from SIA President and CEO John Neufer.
“However, the long-term outlook for the market remains good as semiconductors continue to become a larger and more important part of our digital economy,” he said.
While Nufer’s upbeat sentiment is echoed by other long-term forecasts, there are several other indicators of near-term bearishness among global silicon makers, including recent earnings news from Intel, which said the company’s third-quarter revenue fell 20% year-over-year. annual basis. The US chipmaker’s net income fell sharply from $6.8 billion in the third quarter of 2021 to $1 billion in its latest report, an 85% drop.
The chip industry is facing structural upheaval from a shift in U.S. trade policy toward China, supply chain disruptions caused by Russia’s invasion of Ukraine and the prevailing view that the global economy is heading for a recession that has dampened demand.
A study published earlier this month by the Massachusetts Institute of Technology and published in the Harvard Business Review highlighted that the “vast majority” of chip manufacturing takes place in Taiwan, the People’s Republic of China and South Korea, and that recent US moves, including the CHIPS Act, aimed at reducing the country’s dependence on foreign supplies, will take a long time to bear fruit.
“Optimistic assessment [for the construction time on new semiconductor facilities in the US] at least two years”, write the authors of the studynoting that real reliance on East Asia for chip supplies is a matter of assembly and test facilities as much as raw material manufacturing capabilities.
The latest trade restrictions imposed by the US Department of Commerce earlier this month are likely to cause serious problems for China’s silicon industry, particularly in the area of advanced chips. Experts agree that current silicon supplies have outpaced demand, even as individual markets such as the automotive sector struggle with shortages.
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