February chip sales down 21% globally, down 14% in Americas

Chip sales tanked by 21% globally in February compared to a year earlier, the sixth consecutive month for a drop, according to the World Semiconductor Trade Statistics organization.

Total February sales were $39.7 billion, down from $50 billion in February 2022. Sales were down 4% compared to January 2023, which reached $41.3 billion.

Despite the decline, Semiconductor Industry Association CEO John Neuffer said the long-term prospects for chip sales remain “bright thanks to growing demand across a range of end markets.” SIA reported in March that chip sales for all of 2022 actually increased for automotive and industrial as well as for broad category of consumer products despite a downturn for chips for PCs and computers.

McKinsey also reported recently that auto and industrial sectors will represent 14% and 12%, respectively, of average growth in chip sales by 2030 when total sales are expected to climb above $1 trillion.

“Despite the current short-term downturn in the global semiconductor market, demand for chips in the long-term is expected to show vibrant growth,” SIA reported in March. Private investments to expand manufacturing capacity in the US have exceeded $200 billion thus far.

By regions, China saw the greatest decline in February compared to a year earlier, dropping by 34%, while the Americas dropped by nearly 15%. Europe and Japan were almost flat with Europe down by 0.9% and Japan up by 1.2%.

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bar chart to 2030 of global chip sales