Global semiconductor revenue up by 6.1 percent annually in April

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Semiconductor industry growth in 2020 report.

The Semiconductor Industry Association (SIA) recently noted worldwide component sales rose by 6.1 percent year-over-year in April. The trade organization also noted industry revenue declined by 1.2 percent sequentially (in line with seasonal trends).

Though sales varied by region, the SIA’s data indicates the global semiconductor market is progressing toward a full recovery.

Global Semiconductor Industry Grows in April

The World Semiconductor Trade Statistics (WSTS) organization determined worldwide component sales totaled $34.4 billion in April, up from $32.4 billion in 2019.

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The research group gleans insights from information provided by the SIA, which represents 95 percent of U.S. based chipmakers and two-thirds of foreign component manufacturers. As such, the firm’s finding that the industry is growing amidst the ongoing impact of the coronavirus pandemic is encouraging. SIA CEO John Neuffer said the organization’s conclusions reflect the sector’s “resilience to the economic turmoil caused by COVID-19.”

That said, WSTS’s regional breakdown of global semiconductor sales shows parts of the field are still recuperating from the outbreak’s effects.

The firm reports chip revenue in the Americas rose by 24.5 percent, increased by 4.4 percent in China, and jumped by 3.3 percent in the Asian Pacific year-over-year. The group’s analysis aligns with recent up earnings reports made by California’s Ambarella, Shanghai’s Semiconductor Manufacturing International Corporation, and Taiwan’s Alchip Technology. However, the organization also learned the European semi market fell by 7.1 percent in April on an annual basis.

WSTS’s findings are consistent with the recent soft sales recorded by Germany’s Elmos and Austria’s AT&S. The firm’s report also accords with down forecasts offered by Switzerland’s TE Connectivity and Neubiberg’s Infineon Technologies.

Looking Forward

On balance, the SIA’s April sales data is good news for the global semiconductor industry. While certain regions are further along in the recovery process than others, the overall growth trend reflects healthy demand for electronics components.

As an example, Digitimes Research recently reported a massive surge in laptop and tablet shipments during the second quarter. The organization found notebook deliveries jumped by 40 percent sequentially while slab computer shipments leaped by 45.5 percent. Moreover, as large corporations like Facebook and Google have extended their work-from-home policies through year’s end, demand for remote operation equipment will likely remain robust.

In addition, NXP Semiconductors CEO Kurt Sievers recently told CNBC that the Chinese vehicle market experienced a revival in April and May. As the Dutch chipmaker derives 50 percent of its revenue from automotive component sales, the Sino ground transport industry recovery represents good news for his firm. Similarly, the rising tide of the region’s automobile sector should boost the revenues of Infineon and TE’s vehicle units.

Also, if Europe follows China’s lead, consumer spending should return to seasonal levels once its economy reopens. As such, firms like Elmos and AT&S should experience mid-term sales rebounds once their domestic markets return to normal.

The global semiconductor industry took a significant hit as a result of COVID-19, but the SIA’s April sales figures showed the sector is remarkably resilient.

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