Expectations Rise as Chip Sales Keep Climbing

Release time:2017-06-08
source:EE Times

Forecasts for semiconductor industry growth keep climbing as the memory chip market booms and expectations for the remainder of the year rise.

The World Semiconductor Trade Statistics (WSTS) organization Tuesday (June 6) increased its forecast for the year, saying it now expects chip sales to grow 11.5 percent to reach $378 billion. This would represent the highest annual growth for the semiconductor industry since 2010.

WSTS, an organization of chip vendors that tracks sales data from more than 45 members, had previously said it expected chip sales to increase by 6.5 percent this year.

The revised forecast is the latest indication that optimism about the strength of chip sales in 2017 continues to grow as the year moves on. Market research IC Insights Inc., for example, recently raised its 2017 forecast, saying it now expects the total semiconductor market to grow by 14 percent this year.

John Nueffer
John Nueffer

Chip sales in April totaled $31.3 billion, a 21 percent year-over-year increase, according to the Semiconductor Industry Association (SIA), which reports data compiled by the WSTS group.

"The global semiconductor market has grown at an impressive rate through the beginning of 2017, culminating with April’s year-to-year growth of 21 percent, the global market’s largest increase in nearly seven years,” said John Neuffer, SIA president and CEO, in a statement.

Neuffer said the semiconductor industry's growth has largely been driven by a booming memory chip market, but that sales of other chips also grew by double digit percentages in April. All major regional markets posted substantial year-to-year gains, he added.

Beyond 2017, the WSTS projects that the chip market will grow by an additional 2.7 percent in 2018. Nueffer said that sales in 2019 are projected to be roughly flat.

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The global semiconductor market will grow by 12.4 percent in 2018, reaching $463 billion, according to the latest forecast from World Semiconductor Trade Statistics, an organization of more than 55 chip suppliers that pools sales data.The latest forecast is more bullish than the original WSTS forecast for 2018, issued last November. That forecast called for chip sales to increase by 7 percent. Sales are expected to increase across all product categories and in all regions of the world.WSTS said it raised the chip sales forecast based on continued extraordinary growth in the memory segment as well as strong growth in analog chips. Those two markets are expected to grow by 26.5 percent and 9.5 percent, respectively, this year.The forecast calls for sales to increase by a furter 4.4 percent in 2019, reaching $484 billion.As is typically the case, the latest WSTS forecast is slightly less bullish than forecasts issued by some market watchers. IC Insights said in March that it expects chip sales to increase by 15 percent in 2018.Meanwhile, the Semiconductor Industry Association (SIA) trade group reported that, based on WSTS sales data, the three-month average of semiconductor sales reached $37.6 billion in April, up 1.4 percent from March and up 20.2 percent compared to April 2017.John Neuffer, SIA president and CEO, said through a statement that the industry has posted year-to-year sales growth of more than 20 percent for 13 straight months."Although boosted in part by impressive growth in the memory market, sales of non-memory products also grew by double digits in April on a year-to-year basis, and all major regional markets posted double-digit year-to-year gains," Neuffer said.April sales increased year-to-year by 34.1 percent in the Americas region, 22.1 percent in China, 21.4 percent in Europe, 14.6 percent in Japan and 10.2 percent in the Asia-Pacific region. Sales also grew slightly on a month-to-month basis in all regions except for Asia-Pacific, which posted a slight decrease of 0.8 percent.
2018-06-07 00:00 reading:342
Monthly semiconductor sales hit $35 billion for the first time in August, increasing on a sequential basis for the 13th consecutive month, according to the Semiconductor Industry Association (SIA). The three-month moving average of chip sales increased by 4 percent sequentially and 24 percent year-to-year in August, as the semiconductor sales rally that began in the second half of 2016 continues to steam along, according to the SIA. The industry association reports sales figures compiled by the World Semiconductor Trade Statistics organization, a group of 55 semiconductor firms that provide sales data on a monthly basis. "Sales in August increased across the board, with every major regional market and semiconductor product category posting gains on a month-to-month and year-to-year basis," said John Neuffer, SIA president and CEO, in a press statement. "Memory products continue be a major driver of overall market growth, but sales were up even without memory in August." Led by strong sales of memory chips, the semiconductor industry is enjoying its strongest growth year since at least 2010. The latest forecast from the WSTS calls for chip sales to be  up 11.5 percent this year compared with last year. Other market watchers, such as market research firm IC Insights, are even more bullish. John Neuffer The Americas region posted growth of 8.8 percent sequentially and 39 percent year-over-year in August, the strongest of any major region, according to the SIA. Sales in China were up 3.7 percent sequentially and 23.3 percent year-over-year, the SIA said. Neuffer again urged the U.S. Congress to enact corporate tax reform that makes the U.S. competitive with other nations, echoing a message the SIA put out last week in support of the tax reform proposal advanced by President Donald Trump and Republican leaders in Congress. "With about half of global market share, the U.S. semiconductor industry is the worldwide leader, but U.S. companies face intense global competition," Neuffer said.
2017-10-09 00:00 reading:651
Market watchers keep raising their forecasts for 2017 semiconductor sales, and the number projections keep get bigger. This week, market research firm IC Insights Inc. officially upped its estimate for the 2017 semiconductor market, saying it expects sales to increase 16 percent to reach $419.1 billion. The revised forecast is among the most aggressive yet from industry watchers, who have been revising forecasts upward since a sudden market upturn began in the second half of last year. In the past few months, market research firm Gartner Inc. and the World Semiconductor Trade Statistics (WSTS) organization have both dramatically increased their forecasts, each projecting growth of about 12 percent this year after earlier forecasting more moderate growth for the industry. To a large extent, the chip market is booming more than expected thanks to a sustained surge in memory chip pricing driven by tight supply. IC Insights said the DRAM market is now expected to grow by 55 percent this year, while the market for NAND flash is now expected to grow by 35 percent. In both cases, the sales increases are being driven almost entirely by price increases rather than unit growth, the first noted. The semiconductor industry now appears all but certain to enjoy its first double-digit percentage growth year since 2010, when sales expanded by 33 percent during a  recovery from the global financial crisis and the recession that followed. IC Insights said it would mark the fifth time since 2000 that the industry grew by 10 percent or more. IC Insights noted that the DRAM market has had a notable impact on total IC market growth in recent years. The DRAM market alone lifted the overall chip industry to growth in both 2013 and 2014, when DRAM growth of 32 percent and 34 percent, respectively, led to global chip sales increases of 3 percent in 2013 and 4 percent in 2014, the firm said. Total DRAM sales for the year are forecast to be $64.2 billion, IC Insights said, by far the largest single product category in the IC industry ahead of MPUs by about $17 billion.
2017-08-04 00:00 reading:424
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