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Europe's chip market continues to shrink amidst global growth
The global chip market continued to tick along nicely with 17.9 percent annual growth in January 2025, while Europe's was the only geographical market to get smaller, according to numbers from the Semiconductor Industry Association.
www.eenewsanalog.com, Mar. 10, 2025 –
The global chip market continued to be dragged upwards by 50 percent annual growth in the America’s region. Other regions – excepting Europe – have now settled to mid-to-high single digit percentage annual growth in three-month moving average sales figures from the SIA.
The Americas chip market climbed to a three-month average figure of US$19.54 billion in October, up 50.7percent on the equivalent figure for January 2024. It was noticeable that sequentially the Americas’ 3MMA contracted by 3.5 percent. At the same time the Chinese chip market contracted sequentially by 2.0 percent. Such sequential dips are partly explained by seasonality and the China region resumed steady annual growth after a dip in the previous month.
The European chip market in January contracted by 6.4 percent year-on-year to US$4.10 billion, while Japan’s grew by 5.7 percent. But both of these mature markets are small compared with the Americas, China at US$15.55 billion and Asia-Pacfic at U$13.43 billion.
The market figures continue to reflect the same trends they did throughout 2024, of some companies and markets driven by an AI boom while others are faced with general sluggishness amidst geopolitical turmoil impacting the automotive, industrial and infrastructure markets.
“Following its highest-ever annual sales total in 2024, the global semiconductor market maintained momentum in January, hitting its highest-ever monthly sales total for the month of January, despite a slight decline from the month of December,” said John Neuffer, CEO of the SIA, in a statement.
Monthly data is given by the SIA as a three-month average although the source of the data, WSTS, tracks sales monthly basis. The SIA and other regional semiconductor industry bodies opt to use averaged data because it evens out the actual data that typically shows troughs at the beginnings of quarters and peaks at the ends of quarters.
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