Chip Sales Continue to Slid February

Article By : Dylan McGrath

All major categories of chips are experiencing both sequential and year-over-year declines

SAN FRANCISCO — Semiconductor sales fell further in February, with all major categories of chips experiencing both sequential and year-over-year declines, according to the World Semiconductor Trade Statistics (WSTS) organization.

The three-month average of semiconductor sales slipped to $32.9 billion in February, down 7.3% compared to January and down 10.6% compared to February 2018, according to the WSTS. February's decline was steeper than the industry experienced in January, when the three-month average fell by 7.2% sequentially and 5.7% year-over-year.

After three consecutive years of record sales between 2016 and 2018 — capped by $468.8 billion last year — the semiconductor industry is widely expected to experience more modest growth or even a sales decline in 2019. The latest WSTS forecast calls for semiconductor sales to increase by 2.6% this year, although most independent analysts are less optimistic.

In a statement, Semiconductor Industry Association President and CEO John Neuffer noted that February's sales were down across the board. "Sales were also down across all major regional markets, as the global industry continues to endure a period of slowing sales following record revenues over the last three years," Neuffer said.

February's chip sales decline was particularly steep in the Americas region, where the three-month average was down by 12.9% sequentially and 22.9% year-over-year. Sales declined in China by 7.8% sequentially and 8.5% year-over-year, according to the WSTS, an organization of semiconductor companies that pool sales data.