US Demand Drives 20% Growth in Global Chip Market

On a monthly sequential basis, the three-month moving averages (3MMAs) for the Americas, Europe, and Japan have shown better growth compared to the rest of Asia. However, when compared to the same period a year before, the China and Asia-Pacific regions experienced growth just below the 20 percent mark, while Europe continues to plummet with a 9.0 percent decline on an annual basis.

The global chip market was valued at US$53.12 billion in the three-month average of August, July, and June. This figure is indicative of a semiconductor market boom driven by returning consumer confidence and advancements in artificial intelligence. However, there is sluggishness in the automotive, industrial, and infrastructure markets, possibly due to the depletion of previously acquired inventory.

According to data on the three-month average of chip sales by geographic region for August, July, and June 2024, sourced from SIA/WSTS, the global semiconductor market continued its substantial growth in August. John Neuffer, CEO of SIA, highlighted that August saw the highest-ever sales total for that month, with month-to-month sales increasing for the fifth consecutive month.

Monthly data provided by the SIA is presented as a three-month average, although the source of the data, WSTS, tracks sales on a monthly basis. The decision to use averaged data by the SIA and other regional semiconductor industry bodies is to smooth out the actual data, which typically shows troughs at the beginnings of quarters and peaks at the ends of quarters.

Europe's chip market has experienced a significant decline, while the Americas region has seen a boom in chip market growth. Recent headlines have highlighted the substantial growth in the Americas region's chip market in May, with America driving the global chip market to new heights in April. However, the growth in the global chip market was halted in the first quarter of 2024, indicating fluctuations in the industry.