World Trade Semiconductor Statistics Sees Slowdown Next Year

The World Trade Semiconductor Statistics organization estimates that component sales will increase 2.6 percent next year to $490 billion, the latest warning that global demand for semiconductor may finally be leveling out. The projected growth rate contrasts with 16 percent in the current fiscal year and around 22 percent the year before, when revenues went over $400 billion for the first time.

Semiconductor sales are projected to end the year at $478 billion, according to the World Semiconductor Trade Statistics organization, which pools revenue data from 42 different companies in the sector. The market for memory chips is forecast to grow 33.2 percent this year, followed by discrete semiconductors and optoelectronics at growth rates of 11.7 percent and 11.2 percent, respectively.

“Although strong sales of DRAM products continue to boost overall market growth, sales in all other major product categories [have] also increased year-to-year,” John Neuffer, president and chief executive officer of the Semiconductor Industry Association, said of the results. He added in a statement: “Double-digit annual growth is expected in 2018, with more modest growth projected for 2019.”

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