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General OS News

Global chip market at historical 10 year low

By Anton D. Nagy May 29, 2019, 12:00 pm

Global chip revenues fell to US$101.2 billion in the first quarter of 2019, down 12.9% from US$116.2 billion during the same period of 2018, according to a DigiTimes report, citing data from IHS Markit. Given the current status quo, the top 10 global semiconductor suppliers have recorded declines as the chip market posted its worst quarterly performance in 10 years.

The report suggests that memory chips were at the core of the plummet, and, if it weren’t for them, the market would have only declined 4.4%. Excess inventory and falling demand from key end-markets are also reasons that reportedly contributed to the poor performance of the segment.

IHS said that among all suppliers, Samsung, currently at number two, was the one who posted the biggest decline, at 34.6% year-over-year, mostly due to falling demand, rising inventory and plunging prices for memory chips that account for 84% of the company’s semiconductor business. Other top 10 companies have also experienced a poor performance, with third-place SK Hynix recording a 26.3% drop, and fourth-place Micron declining by 22.5% compared to the first quarter of 2018.

The biggest winner from the top 10 seems to be Intel, which posted a negligible 0.3% decline year-over-year, allowing the company to maintain its number one position in the business. Memory isn’t Intel’s strong point, which is one of the reasons why it wasn’t affected, but “the company’s microprocessor business was still affected by rising inventory and decreasing demand from the PC, enterprise and cloud sectors“.

You can read more in the report at the source link below.

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