$468.8 Billion Semiconductors Record Sales in 2018

6 February, 2019

According to SIA, the industry posted highest-ever annual sales and shipped 1 trillion units for first time in 2018. Growth slowed during the second half of the year

The global semiconductor industry posted sales of $468.8 billion in 2018, the industry’s highest-ever annual total and an increase of 13.7% compared to the 2017, according to the Semiconductor Industry Association (SIA). “Global demand for semiconductors reached a new high in 2018, with annual sales hitting a high-water mark and total units shipped topping 1 trillion for the first time,” said John Neuffer, SIA president and CEO. “Market growth slowed during the second half of 2018, but the long-term outlook remains strong.”

Indeed, Global sales for the month of December 2018 reached $38.2 billion,  down 7% compared to November 2018. Fourth-quarter sales of $114.7 billion were 0.6% higher than the fourth quarter of 2017, but 8.2% less than the third quarter of 2018 (The numbers were compiled by the WSTS).

Memory was the largest semiconductor category by sales with $158.0 billion in 2018, and annual growth of 27.4%. Within the memory category, sales of DRAM products increased 36.4% and sales of NAND flash products increased 14.8%. Logic devices accounted for $109.3 billion sales and micro-ICs, a category that includes microprocessors, accounted for $67.2 billion sales. 

Other fast-growing product categories in 2018 included power transistors (14.4% growth and total sales of $14.4 billion) and analog products (10.8% growth and total sales of $58.8 billion. Even without memory products, sales of all other products combined increased by nearly 8% in 2018. China led the annual sales with 20.5% growth. The Americas followed with 16.4%, Europe 12.1%, Japan 9.2%, and All Other showe a 6.1% annual growth in 2018.

According to  IC Insights, Semiconductor unit shipments climbed to 1,068.2 billion units in 2018 and are expected to climb to 1,142.6 billion in 2019, which equates to 7% growth for the year. The researchers believe that most of the growing semiconductor categories in 2019 are those that are essential building-blocks for smartphones, automotive electronics systems, and devices that are used in artificial intelligence computing systems such as big data and deep learning applications.

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