Chip market will shrink in 2016, says WSTS

June 09, 2016 // By Peter Clarke
Crystal ball
The global semiconductor market will fall by 2.4 percent in 2016 to $327 billion before turning to modest growth in the following years, according to the European Semiconductor Industry Association referring to figures from the World Semiconductor Trade Statistics (WSTS) organization.

WSTS has overturned its previous prediction of growth in 2016 (see Analog, US to lead chip market growth ) and delayed the prospect of growth. It now reckons that global market will grow in 2017 and 2018 led by the Asia-Pacific region and by optoelectronic, sensor and analog ICs.

WSTS May 2016 forecast summary. Note: numbers in the table are rounded to whole millions of dollars, which may cause totals by region and by product groups to differ slightly. Source: ESIA and WSTS.

For 2016, growth in optoelectronics (1.8 percent), sensors (7.6 percent), and analog (1.0 percent) is expected to be offset by declines in memory (-10.2 percent) and logic (-2.5 percent).

By geography, for 2016, declines are expected across all regions with the largest decline in Americas. This all-round declining prediction comes despite year-on-year growth shown by the Japanese marker in the first four months of 2016 (see Japan grows again as global chip market shrinks ).

WSTS has come out as the most bearish of forecasters but close to IDC that recently forecast 2016 market contraction at 2.3 percent with the global market shrinking to $324 billion (see IDC joins forecasters predicting chip market fall ). Two other market research firms, Gartner and TrendForce, have previously predicted a contraction of 0.6 percent (see Gartner agrees 2016 chip market will fall and Chip market set to shrink in 2016, says TrendForce ).

Related links and articles:

www.eusemiconductors.eu

www.wsts.org

News articles:

IDC joins forecasters predicting chip market fall

Gartner agrees 2016 chip market will fall

Chip market set to shrink in 2016, says TrendForce

Analog, US to lead chip market growth

Japan grows again as global chip market shrinks