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Worst Chip Sales Decline in 10 Years Projected



SAN FRANCISCO – With the terms of the semiconductor market deteriorating rapidly since the beginning of the year, the market research company IHS Markit has beaten its forecast for chip sales by more than 10%.

The chip market is now ready to decline by 7.4% to $ 446.2 billion by 2019, according to IHS. The company had previously assumed that chip sales would increase by 2.9% this year.


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A 7.4% drop in chip sales will mark the worst year for the semiconductor industry since the big recession in 2009, when the semiconductor market fell by nearly 11%, IHS said.

The IHS forecast audit is consistent with other market research firms that have revised their market forecasts downward due to market weakness in the first quarter. IC Insights currently forecasts that chip sales will fall by at least 9% compared to last year. World Semiconductor Trade Statistics organization ̵

1; consisting of a group of semiconductor vendors that have sold sales data – has assumed that the market will fall by about 3% this year.

According to Myson Robles Bruce, a research director at IHS, the semiconductor vendors were optimistic early this year, so they could achieve modest growth in 2019. However, the chipmaker's confidence was quickly transformed into fear as they experienced the depth and speed of the current decline, Bruce.

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The degree of today's decline is due to ever-increasing demand combined with a rapid increase in inventory in the first quarter. Product segments, including DRAM, NAND flash, general purpose microcontrollers, 32-bit microcontrollers and ASICs, all generated double-digit revenue growth in the first quarter, according to IHS.

While IHS is now projecting the largest semiconductor industry revenue fall since 2009, the company also predicts that market conditions will recover in the third quarter, with sales declining for NAND used in solid state drives and smartphones and a processor used in laptops and notebooks. serve.


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