A 15% increase in global semiconductor sales in January 2024

The Semiconductor Industry Association (SIA) has brought good news for the semiconductor sector. The sales for the industry in January 2024 experienced a 15.2% growth compared to the same period last year, meaning they grew from $41.3 billion in January 2023 to $47.6 billion. However, the total sales in January were 2.1% less than that in December 2023, which recorded sales of $48.7 billion.

The slight decline from December to January is easily understandable. December encapsulates the large holiday shopping season and ranks as one of the best months for global enterprises. A plethora of corporations, including Apple, release new products at the end of the third quarter and the beginning of the fourth quarter, which stimulates interest and demand. The pleasing news is that demand did not plunge significantly in January.

In terms of regions, except Japan and Europe, sales increased in places like China, the Americas, Asia-Pacific, and other regions when comparing year over year. Concurrently, all markets are experiencing a decline in monthly sales, which aligns with the expectations post the holiday shopping season.

Although the semiconductor sector showed signs of recovery in January, the predicament is not yet over. The previous year witnessed a decline in global revenue across the semiconductor industry, leading to strategic downsizing and delays in the construction of new facilities. Chip manufacturers, distributors, and other firms prioritized capital preservation during the most severe economic slowdown phases.