Global Chip Market Stalls in 1Q24

The global chip market saw fluctuations in March, with the three-month moving average value reaching US$45.91 billion. This represented a slight decrease of 0.6 percent from February but a notable increase of 15.2 percent compared to March 2023.

These figures, reported by the Semiconductor Industry Association (SIA) based on data from the World Semiconductor Trade Statistics organization, serve as indicators for the first quarters of 2024 and 2023. The dip in growth hints at a potentially slower expansion in 2024, aligning with concerns raised by industry players like TSMC, which recently adjusted its semiconductor forecasts for the year.

During the first quarter of 2024, global chip sales totaled US$137.7 billion, marking a 15.2 percent rise from the same period in 2023. However, this figure represented a 5.7 percent decline from the previous quarter, indicating a shift in market dynamics.

While many analysts continue to project annual growth rates of 13 to 20 percent for the global chip market in 2024, the latest data suggests that sustaining double-digit growth may pose challenges. The performance of key regions further underscores the market's complexity and varied trajectories.

In the latest data breakdown, North America and China stood out for their sustained growth, driven largely by consumer electronics demand. Conversely, Europe and Japan experienced contractions, contributing to weaker overall market performance. These regional disparities highlight the diverse factors influencing the chip industry.

The Americas, particularly the US market, demonstrated robust growth, with a 26.3 percent increase compared to the previous year. China emerged as a dominant force, boasting the largest and fastest-growing market segment. In March, China's three-month moving average reached US$14.14 billion, underscoring its pivotal role in the global chip landscape.

John Neuffer, CEO of the SIA, commented on the market trends, noting the positive year-over-year growth but acknowledging the month-to-month fluctuations. He emphasized the industry's resilience and projected continued expansion, with expectations of double-digit growth rates for 2024.

Monthly data provided by the SIA, based on a three-month average, offers a comprehensive view of market trends. While the data is sourced monthly from WSTS, the use of averaged figures helps smooth out seasonal variations typical in semiconductor sales, providing a more stable representation of market performance.

For more information on global chip market trends and industry insights, visit www.semiconductors.org.