Global Chip Sales Point to Shift in Supply Chain Balance
In the midst of the stock market tumbling in China and general, global economic malaise, there is still much to be said for sustainable growth trends across the semiconductor and electronics industry, from foundries to end-devices.
However, along with this positive macro-trend for the industry is a disruptive shift that heralds a change in the balance of power and in long-standing supply chain relationships.
Despite the valid economic concerns many have for China’s stability, there are equally strong positive indicators for electronics growth based on the volume and scale of demand in the emerging markets of China, India, and other Asia-Pacific nations (APAC).
Certainly, not all is humming along for the semiconductor and electronics industry; demand for smartphones and tablets is slowing in North America and continued decline in PC sales remains problematic along with diminishing hope that Microsoft’s Windows 10 release would spur the typical enterprise and consumer refresh cycles. While concerns about some device sales linger, phablets are surging, picking up tablets’ slack, as IC Insights underscores in a report.
Global semiconductor sales numbers point to continued positive outlooks for the industry. The Semiconductor Industry Association (SIA) announced that chip sales in May rose a solid 5.1 percent, adding to 25-months of consecutive monthly growth on a year-on-year basis. The Americas led global semiconductor sales with 11.4 percent increase year-over-year, followed by Asia-Pacific with 3.3 percent.