The Semiconductor Industry Association (SIA) has reported a significant drop in global chip sales in February, with a decrease of 20.7% to $39.7 billion compared to the same month last year, marking the largest drop in 14 years. This decline has persisted for six consecutive months, attributed to market cyclicality and macroeconomic headwinds. Despite the short-term challenges, SIA President and CEO John Neufer remains optimistic about the medium- and long-term market outlook due to growing demand in various markets.

In terms of regional sales, the Americas experienced a decline of 14.8% in February compared to the same month last year, Europe decreased by 0.9%, China by 34.2%, and Asia-Pacific and other regions by 22.1%. However, Japan saw a slight increase of 1.2%. In comparison to January, sales also decreased in North and South America by 5.3%, Europe and Japan by 0.3%, China by 5.9%, and the Asia-Pacific Region by 3.6%.

The SIA represents a significant portion of the US semiconductor industry and a substantial percentage of chip manufacturers from other countries, accounting for approximately 99% and 66% respectively. The decline in chip sales reflects the current challenges faced by the semiconductor industry, which plays a crucial role in various sectors such as consumer electronics, automotive, and telecommunications.