The semiconductor companies tend to go up and down from the regular chip cycles bound to the law of supply and demand. When the conditions are favorable, semiconductor manufacturers have trouble keeping up with the demand. On the other hand, when supply outruns the demand, the prices fall drastically and so do the manufacturing levels of the chips.
The global chip sales rose by 13.7% that is $468 billion in 2018. This was the industry’s highest-ever annual total. Memory chips were the largest category with the sales of $158 billion in 2018 which was 33.7% of the total market. The next 2 largest categories were logic chips at 23.3% and micro integrated circuit market which was at 14.3%.
Global Semiconductor Chip Market Statistics
It is predicted that the global chip market will decline by 12.1% to $412 billion by the end of the year. One of the reasons may be the growing uncertainties from factors such as US-China trade war. World Semiconductor Trade Statistics (WSTS) predicted growth of 2.6% for 2019 in the previous reports. It is predicted that sales will grow back in 2020.
Except for the memory chips, semiconductor sales are seen rising by 1% to $319 billion in 2019. Both DRAM and NAND memory chips are predicted to decline in 2019 and 2020.
Memory sales, which accounted for about 30% of the semiconductor market, are seen to be reduced by 30.6% to $109.5 billion in 2019. Memory prices continue to languish even as chip manufacturers cut down production or postpone the capital spending. Prices of DRAM are almost 30% lower than in October and that of NAND flash memory has fallen about 30% in half a year.
The downgrade in 2019 was blamed on world affairs including the trade war and weak demand for the smartphone. The US data centre operators that bought a large number of chips in 2018, began reducing their stockpiles.
The above analysis offers strategies and analyzes global semiconductor chip handler market 2019. It provides comprehensive research of price, revenue and gross margin product range. Additionally, it covers growth prospects within forecast years. The report constraints and offers details about a few tendencies that influence the semiconductor chip handler economy. For more tech news and update you visit our news section