Component sales are projected to show a 2.6 percent global increase next year with revenues up to $490 billion, per the World Semiconductor Trade Statistics (WSTS) Autumn 2018 Market Forecast. The waning 2019 forecast represents moderate future growth, especially when compared to a projected annual global market increase of 15.9 percent by current year-end.
Sales Data Comparison
The Semiconductor Industry Association (SIA) recently announced global semiconductor sales for October 2018 reached $41.8 billion. This tally is around one percent higher than the previously reported $40.9 billion sales total for September 2018, which contributed to record-high Q3 sales.
Last year’s WSTS fourth-quarter figures saw a notable 21.6 percent increase in 2017 with component sales hitting a record-high mark of more than $412 billion. Year-end revenue projections for 2018 are expected to reach an industry-high annual tally of $478 billion.
While 2019 revenues are expected to top this year’s peak by another $12 billion (to reach $490 billion), the slowed growth trend shows a 19 percent decline from 2017 market data.
Product sales are reportedly expected to grow across all major categories and in all geographical regions for 2018. Memory chips are projected to show the biggest sales spike, at around 33.2 percent. Discretes are expected to follow at 11.7 percent and Optoelectronics predicted to trail closely at 11.2 percent.
President and CEO of Semiconductor Industry Association John Neuffer acknowledged solid annual October-to-October growth for the global semiconductor market in a statement, noting 2018 is on track to post the highest-ever annual sales.
“Although strong sales of DRAM products continue to boost overall market growth, sales in all other major product categories also increased year-to-year in October, and all major regional markets posted year-to-year gains,” Neuffer added. “Double-digit annual growth is expected in 2018, with more modest growth projected for 2019.”
Regional Sales Breakdown
China showed the biggest regional year-to-year sales increase with 23.3 percent growth. The Americas followed at 14.1 percent, Japan increased 5.5 percent, and Asia Pacific/All Other rounded out the increases with 3.7 percent growth.
Regional projections for 2018 project a 19.6 percent sales hike in the Americas, followed by a 16.0 percent increase in Asia Pacific, 13.2 percent growth in Europe and a 9.6 percent increase for Japan.