US Demand Revives Global Chip Market in April

The global chip market, assessed as a three-month moving average (3MMA), reached a value of US$46.43 billion in the latest data, showing a significant increase of 15.8 percent from April 2023. This growth trend was particularly notable in the Americas chip market, which surged by 32.4 percent to reach US$12.64 billion. Similarly, the China and Asia-Pacific regions maintained strong annual growth rates of 23.4 percent and 11.1 percent, achieving market values of US$14.17 billion and US$11.79 billion, respectively.

These figures indicate that a consumer and AI-driven boom may be offsetting any sluggishness in sectors such as automotive, industrial, and infrastructure markets. The World Semiconductor Trade Statistics (WSTS) predicts that the 2024 chip market will continue to expand, with a projected growth rate of 16 percent.

Despite the overall positive outlook, the European and Japanese chip markets experienced contractions of 7.0 and 7.8 percent, respectively. However, due to the relatively smaller size of these markets compared to others, their impact on the global chip market is less significant.

According to data from the Semiconductor Industry Association (SIA) and WSTS, the global semiconductor industry has consistently seen double-digit sales increases on a year-to-year basis throughout 2024. In April, sales also rose on a month-to-month basis for the first time this year, indicating a promising market momentum as the industry progresses through the year.

John Neuffer, CEO of the SIA, highlighted the positive trend, stating, "Additionally, the latest industry forecast projects strong annual growth in 2024, led by sales to the Americas market, which is expected to grow by more than 25 percent this year." The use of a three-month average for chip sales data by industry bodies like the SIA and WSTS helps to smooth out fluctuations that typically occur at the beginning and end of quarters.