VR among future growth drivers of global semiconductor industry according to SIA

March 4, 2019 – The Semiconductor Industry Association (SIA), which works to represent the US semiconductor industry, today announced that worldwide sales of semiconductors had fallen year-on-year by 5.7 percent to USD $35.5 billion for the month of January 2019, compared with the January 2018 total of USD $37.6 billion. This figure also marked a 7.2 percent decrease compared with December 2018’s total of USD $38.2 billion. The SIA’s announcement is based off of figures from the World Semiconductor Trade Statistics (WSTS) organization, which represent a three-month moving average.

“Global semiconductor sales got off to a slow start in 2019, as year-to-year sales decreased in January for the first time since July 2016 and month-to-month sales were down across all major product categories and regional markets,” said John Neuffer, SIA president and CEO. “Following record sales over the last three years, reaching $469 billion in 2018, it seems clear the global market is experiencing a period of slower sales.”

However, thanks to the increasing use of semiconductors in a range of consumer products, the long-term market outlook actually remains positive. Neuffer added: “This is in part due to future growth drivers such as artificial intelligence, virtual reality, the Internet of Things, and 5G and next-generation communications networks.”

Regionally, year-to-year sales increased slightly in Europe (0.2 percent), but fell in the Americas (-15.3 percent), Asia Pacific/All Other (-3.8 percent), China (-3.2 percent), and Japan (-1.5 percent). Compared to last month, sales were down across all regional markets: Europe (-1.5 percent), Asia Pacific/All Other (-3.6 percent), Japan (-4.7 percent), China (-8.5 percent), and the Americas (-13.0 percent).

Graph source: WSTS/SIA

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Sam Sprigg

Sam is the Founder and Managing Editor of Auganix. With a background in research and report writing, he has been covering XR industry news for the past seven years.