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Global chip sales reach record high in 2022 China remains largest market

Update time : 2023-02-07 08:56:39

Although the chip shortage caused by the epidemic turned into a supply glut around the middle of last year, slowing sales sharply, global chip sales are still up slightly throughout 2022, reaching a record high. The Semiconductor Industry Association (SIA) recently released data showing that global chip sales rose 3.2 per cent to a record $573.5 billion in 2022 from $555.9 billion in 2021.

However, the chip industry encountered significant headwinds in the second half of the year, with chip sales falling 14.7 per cent year-on-year to US$130.2 billion in the fourth quarter of 2022, 7.7 per cent lower than sales in the third quarter of 2022. The association also said that sales in December 2022 were down 4.4 per cent from November to $43.4 billion.
The analysis attributed the industry's gloom to three factors: firstly, falling demand due to uncertainty in the global economic outlook; secondly, overcapacity in chips and excessive inventories to be absorbed; and thirdly, a lack of innovation in electronic products such as mobile phones, leading to a lengthening interval for people to replace their devices.
In terms of regions, the Americas will see the largest increase in sales in 2022, at 16.0%, while China remains the largest chip market with sales of US$180.3 billion, but down 6.3% compared to 2021, and Europe and Japan will also see annual sales growth, at 12.7% and 10.0% respectively.
Compared to November 2022, sales declined in all regions in December: Europe by 0.7%, Japan by 0.8%, China by 5.7% and the Americas by 6.5%.
In terms of chip type, analogue chips (those most commonly used in automobiles, consumer goods and computers) saw the largest increase in sales, up 7.5% year-on-year to $89 billion, while logic chips and memory chips accounted for the largest share of sales, with global sales of $176 billion and $130 billion respectively.
In a statement, SIA CEO John Neuffer said, "While market cyclicality and macroeconomic conditions have led to short-term fluctuations in sales, the long-term outlook for the semiconductor market remains very strong as chips play an increasing role in making the world smarter, more efficient and more connected. "
During this US earnings season, many chipmakers have mentioned that rising channel inventory levels have become the biggest headwind. As seen in the earnings reports of Intel, AMD and Qualcomm, a two-year chip shortage situation due to the new crown epidemic has quickly turned into a chip glut in 2022.

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