SIA says the overall outlook remains stagnant.
KUALA LUMPUR: The US-based Semiconductor Industry Association (SIA) reported a 0.3% increase in global sales of semiconductors in March 2016 at US$26.1bil, the first time in five months but the going will continue to be tough for the sector.
The SIA said the sales were higher on-month from US$26bil. For the first quarter of 2016, sales fell 5.5% to US$78.3bil compared to the previous quarter and 5.8% lower than a year ago.
Its president and CEO John Neuffer said global semiconductor sales increased in March for the first time in five months, “but soft demand, market cyclicality, and macroeconomic conditions continue to impede more robust growth.”
He pointed out Q1 sales lagged behind last quarter across nearly all regional markets, with the Americas showing the sharpest decline.
Regionally, month-to-month sales increased in Japan (4.8%), Asia Pacific/All Other (2.3%), and Europe (0.1%), but fell in China (-1.1%) and the Americas (-2.8%).
Compared with a year ago, sales in March increased in Japan (1.8%) and China (1.3%) but fell in Asia Pacific/All Other (-6.4%), Europe (-9.8%), and the Americas (-15.8%).
Neuffer said 83% of US semiconductor industry sales are into markets outside the US, so access to overseas markets is imperative to the long-term strength of our industry.
“The Trans-Pacific Partnership (TPP) is a landmark trade agreement that would tear down myriad barriers to trade with countries in the Asia-Pacific. The TPP is good for the semiconductor industry, the tech sector, the American economy, and the global economy. Congress should approve it,” he said.
Subscribe or renew your subscriptions to win prizes worth up to RM68,000!
