The semiconductor industry ended the last decade with a whimper, but recent evidence seems to confirm the forecast should brighten at the beginning of the new decade.
November’s semiconductor sales were flat compared with the previous month, where sales inched up from September but were remained down from year-ago levels.
"As 2019 winds down, global semiconductor sales continue to lag behind last year's total, but we've begun seeing indications of the modest rebound projected for next year," said John Neuffer, president and CEO, Semiconductor Industry Association, in a statement. "Regionally, the Americas market was the only major market to grow on a month-to-month basis, but sales into the Americas were down substantially year-to-year."
Sales increased in November 2019 compared to October 2019 in the Americas (2.3%), held flat in China, and decreased in Europe 0.6%, Asia Pacific/All Other (-1.8 percent), and Japan (-1.9 percent). November 2019 sales were all down from year-ago November 2018 levels in all regions. The table below has details.
|
November 2019 |
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|
Billions ($) |
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|
Month-to-Month Sales |
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|
Market |
Last Month |
Current Month |
% Change |
|
Americas |
7.28 |
7.44 |
2.3% |
|
Europe |
3.37 |
3.35 |
-0.6% |
|
Japan |
3.14 |
3.08 |
-1.9% |
|
China |
13.00 |
13.00 |
0.0% |
|
Asia Pacific/All Other |
9.95 |
9.78 |
-1.8% |
|
Total |
36.75 |
36.65 |
-0.3% |
|
Year-to-Year Sales |
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|
Market |
Last Year |
Current Month |
% Change |
|
Americas |
9.58 |
7.44 |
-22.3% |
|
Europe |
3.64 |
3.35 |
-8.0% |
|
Japan |
3.39 |
3.08 |
-9.1% |
|
China |
13.82 |
13.00 |
-6.0% |
|
Asia Pacific/All Other |
10.67 |
9.78 |
-8.3% |
|
Total |
41.11 |
36.65 |
-10.8% |
|
Three-Month-Moving Average Sales |
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|
Market |
Jun/Jul/Aug |
Sept/Oct/Nov |
% Change |
|
Americas |
6.40 |
7.44 |
16.3% |
|
Europe |
3.27 |
3.35 |
2.6% |
|
Japan |
3.07 |
3.08 |
0.5% |
|
China |
12.10 |
13.00 |
7.4% |
|
Asia Pacific/All Other |
9.69 |
9.78 |
0.9% |
|
Total |
34.53 |
36.65 |
6.1% |
Another promising sign for the semiconductor sector is a recent decline in inventory levels. Last year’s industry downturn caused inventories to bloat at many semiconductor and component companies, who responded by cutting production. The effects are now starting to be felt.
Ron Ellwanger, Senior Research Analyst for Hayden Ferry Lakeside, said in a recent e-mail to FierceElectronics that third quarter 2019 semiconductor inventories dropped 7.1% from the previous quarter. Inventories also decreased substantially at fabless and foundry vendors, he added. Ellwanger expects semiconductor vendors to continue keeping a lid on inventory levels.