NEW YORK – Alongside reporting weak three-month averaged global chip sales for April the Semiconductor Industry Association has said that the World Semiconductor Trade Statistics (WSTS) organization has reduced its estimates for chip market growth for 2013 and 2014.
As a result of the downgrade WSTS now predicts the global chip market will be worth $297.8 billion in 2013, up 2.1 percent compared with 2012 and worth $312.9 billion in 2014, up 5.1 percent. For 2015 WSTS is predicting another low growth year of 3.8 percent.
In a previous estimate given in November 2012 WSTS predicted growth of 4.5 percent in 2013 and of 5.2 percent in 2014 (see Chip market to fall in 2012).
The WSTS Spring market forecast predicts year-over-year increases for 2013 in Asia Pacific (5.7 percent), Europe (5.3 percent) and the Americas (1.6 percent), but a sharp decline in Japan (-13.8 percent).
No reason was given for the reduced forecast.
Click on image to enlarge.
WSTS Spring 2013 forecast summary. Source: SIA, WSTS
The three-month average for global chip sales in April was $23.62 billion, slightly ahead of analyst expectations but showing a year-on-year decline from the April 2012 total of $24.06 billion, according to Semiconductor Industry Association (SIA).
The latest global sales figure represented a 0.6 percent increase from three-month average sales of $23.48 reported for March 2013, and was slightly ahead of a forecast of $23.5 billion given recently by Bruce Diesen, an analyst with Carnegie Group (Oslo, Norway).
Monthly data is given by the SIA as a three-month average, although the source of the data, the World Semiconductor Trade Statistics (WSTS) organization, tracks actual monthly data. The SIA and other regional semiconductor industry bodies opt to use averaged data because it smoothes out the actual data that typically show troughs at the beginnings of the quarters and peaks at the ends of the quarters.
Compared to April 2012, sales increased in Asia Pacific (3 percent) and Europe (0.4 percent), but fell in the Americas (-4.4 percent) and Japan (-19.4 percent), in part due to the devaluation of the Japanese yen.
Click on image to enlarge.
April 2013 three-month average sales (in
dollar-billions) compared on a yearly, monthly and previous-quarter
basis. Source: SIA and WSTS.
"With modest but steady gains in semiconductor sales in recent months and stronger growth projected for the remainder of this year and 2014, the global semiconductor industry is heading in the right direction as summer approaches, despite a stubbornly sluggish macroeconomic environment," said Brian Toohey, CEO of the Semiconductor Industry Association, in a statement. "Industry sales continue to narrowly outpace 2012 totals thanks largely to strong demand for memory and logic products," he added.
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