Global Semiconductor Market 2Q Sales Down 1.9%... Third Consecutive Quarter of Decline

Global Semiconductor Market Q2 Sales Reach $151.8 Billion, Down 1.9% from Previous Quarter

Semiconductor image / Source=Pixabay

[Asia Economy Reporter Kim Pyeonghwa] The semiconductor market in the second quarter recorded negative growth compared to the previous quarter, marking a decline for the third consecutive quarter. This was influenced by decreased sales from major market players such as Intel.

On the 22nd, market research firm Omdia announced that the global semiconductor market sales for the second quarter of this year amounted to $151.8 billion (approximately 213.8 trillion KRW), a 1.9% decrease compared to the first quarter ($161.2 billion, approximately 227.7 trillion KRW). This marks the third consecutive quarter of sales decline since the fourth quarter of last year.

Cliff Limbach, Senior Research Analyst at Omdia, evaluated, "The second quarter of this year was the third worst Q2 performance in the 20 years Omdia has been tracking the market."

Omdia noted that Intel, which accounts for more than 10% of the total semiconductor market, recently experienced a decline in profits, adding downward pressure on overall market sales. The combined decrease in second-quarter earnings of top market companies Intel and Nvidia reached $3.7 billion (approximately 5.2 trillion KRW). The strength of the US dollar against foreign currencies also contributed to the decline in total sales converted to US dollars for US-based companies.

Considering the cyclical nature of the semiconductor market, Omdia forecasted that the second half of this year through the first half of next year could be a period of adjustment during which the market normalizes.