World Chip Sales Demonstrate Growth

Global chip sales figures show positive dynamic growth.

World Chip Sales Demonstrate Growth

The media reports that the current level of demand for semiconductor industry products indicates a gradual restoration of customer interest in the relevant goods. The improvement of the state of affairs in this area is largely due to the active development of artificial intelligence systems, for the functioning and training of which chips are needed.

Data from the Washington-based Semiconductor Industry Association shows that revenue from the sale of related products in November last year amounted to $48 billion globally. This figure is 5.3% higher than the result recorded for the same period in 2022. In October, revenue from the global sales of semiconductor industry products showed an increase of 2.9% year-on-year.

Currently, the digital environment is in the stage of active development and intensive scaling. Against this background, there is a need for chips, which are the main components in the functioning of a kind of ecosystem of virtual products and services. Last year, the semiconductor industry, despite the positive commercial indicators recorded in November, faced significant difficulties. In this case, one of the main negative factors was the weak consumer demand for smartphones. The financial condition of the semiconductor industry was also affected by high-interest rates, which became a source of pressure on the sphere of trade and the dynamic of economic growth.

Samsung Electronics Co., one of the world’s largest manufacturers of memory microcircuits, this week reported a decline in operating profit for the sixth consecutive quarter. The mentioned microcircuits are one of the segments of the global chip market. Samsung’s financial performance can probably be described as a signal that the recovery in the growth of the semiconductor industry in the economic dimension will be uneven.

The process of increasing chip sales was led by China. The number of microcircuits purchased by the world’s second-largest economy in November was 7.6% higher than in the same period in 2022.

Chip sales in the mentioned month in the Americas increased by 3.5% year-on-year. In Europe, this indicator in November showed a growth of 5.6% compared to the result for the same period in 2022. In Japan, the dynamic of chip sales turned out to be negative. In this country, in November, the corresponding indicator decreased by 2.8% year-on-year.

The Semiconductor Industry Association reports that it provides data on 99% of the sphere of making chips in the United States and information on the performance of nearly two-thirds of microcircuit manufacturers outside the US. The organization publishes sales information based on statistics on the global semiconductor trade.

John Neuffer, president and chief executive Officer of the Semiconductor Industry Association, says that the growth in global chip sales last fall was recorded for the first time since August 2022. According to him, this result is evidence that the global microcircuits market is gaining strength. John Neuffer expects sales of semiconductor products to show double-digit growth this year.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.