The Semiconductor Industry Association (SIA) determined global semiconductor sales rose by 4.9 percent year-over-year in August, totaling $36.23 billion. The firm found that the Americas led the growth trend, jumping by 23.6 percent from last year.
As the organization represents 95 percent of U.S. chipmakers and two-thirds of global component manufacturers, its dataset is comprehensive.
Sales Growth in the Americas, China, and Asia Pacific Regions
Last month, semiconductor vendors based in North, Central, and South America generated $7.92 billion in revenue, up from $6.40 billion in August 2019. The region also expanded its sales by 2.6 percent from July 2019, when it recorded $7.71 billion in sales.
The SIA’s findings are supported by the strong performance leading American electronic component companies. IC Insights reported Intel, Micron, Nvidia, and Texas Instruments ranked as top ten chip vendors in the first half of the year. With Apple, Sony, and Microsoft releasing hotly-anticipated new products in the holiday quarter, the area’s sales should continue through year’s end.
Chinese and Asia Pacific-based semiconductor firms experienced 3 and 2.21 percent year-over-year growth in August. The SIA notes electronic parts sales in those areas rose by 2.9 and 5.6 percent from July, respectively.
Semiconductor providers located in Asia have had a breakout year in 2020. TSMC made $10.51 billion in the second quarter thanks to increasing demand for its contract manufacturing services. As the chipmaker has reportedly received large orders from Apple and Intel since then, its revenue intake is unlikely to drop off anytime soon.
Similarly, SMIC, China’s largest component manufacturer, recorded $938 million in Q2. Since it has the most advanced fabrication processes in its region, it has become a favored partner of Sino companies.
That said, the U.S. government’s decision to impose tighter export controls on domestic semiconductor technology will hurt SMIC’s ability to upgrade its systems.
Declines in Europe and Japan
Unfortunately, 2020 has not been a banner year for semiconductor manufacturers located in Europe or Japan.
The SIA states European chip sales fell by 10.1 percent annually last month to $2.94 billion. The region’s electronic components market also shrank by 14.1 percent in July. The area’s contracting semiconductor sales are likely related to the continuing struggles of the Eurozone’s coronavirus ravaged automobile industry.
In June, Europe’s new car registrations were down by 22.3 percent from 2019.
That said, the region’s parts sales rose by 5.5 percent from July, which indicates the local market is headed for a near-term recovery.
The same cannot be said for the Japanese semiconductor sector. In August, the country’s domestic component revenue totaled $3.02 billion, a yearly revenue decline of 1.14 percent.
Japanese chipmakers are also in the process of adjusting their operations to Huawei’s declining presence within the global semiconductor market. Until the local vendors new acquire clients, its component revenue will likely continue to diminish.
Still, Japanese semiconductor sales grew by 1.5 percent from July. Coupled with the segment’s expansion globally, the nation’s chip market likely has better days ahead.