Global chip sales dropped more than 20% in April, but 2024 rebound expected

Global chip sales in April fell more than 20% from a year ago for yet another month where revenue has dropped off by a fifth or more from last year’s record sales, according to an industry trade group late Tuesday. April sales fell 21.6% to $40 billion from April 2022’s $50.9 billion, according to the Semiconductor Industry Association. The trade group now expects the market to fall 10.3% in 2023, with a rebound of 11.9% growth in 2024, using World Semiconductor Trade Statistics forecast data. “The global semiconductor market remains in a cyclical downturn, exacerbated by sluggish macroeconomic conditions, but month-to-month sales ticked up for the second consecutive month in April, perhaps foreshadowing a continued rebound in the months ahead,” said SIA Chief Executive John Neuffer in a statement. Year-over-year, March sales dropped 21.3%, February sales dropped 20.7%, and January’s fell 18.5%, following record sales in 2022 of $573.5 billion. The PHLX Semiconductor Index
SOX,
+1.28%
is up 13.9% from 12 months ago, while the S&P 500 index
SPX,
+0.24%
is up 3.9%, and the tech-heavy Nasdaq Composite Index
COMP,
+0.36%
is up 10.1%