TimesEV
TimesEV
TimesEV
TimesEV
TimesEV
TimesEV
More
    HomeEV ProductsSemiconductorFear of a Global Recession amid cooling semiconductor sales

    Fear of a Global Recession amid cooling semiconductor sales

    Semiconductor sales rose 13.3% in June from a year earlier, down from 18% in May, data from the global peak industry body showed. The current slowdown is the longest since the US-China trade war in 2018. World chip sales growth has decelerated for six straight months, yet another sign the global economy is straining under the weight of rising interest rates and mounting geopolitical risks.

    The three-month moving average in chip sales has correlated with the global economy’s performance in recent decades. The latest weakness comes as concern about a worldwide recession that has prompted chipmakers like Samsung Electronics Co. to consider rewinding investment plans.

    Semiconductors are key components in a world that’s increasingly reliant on digital products and services, particularly during the pandemic when a lot of work and schooling was conducted remotely. Chip sales started to cool as central banks began scrambling to raise interest rates to combat spiraling inflation and Russia’s war on Ukraine and prolonged Covid lockdowns in China prompted a rapid reversal in the international outlook.

    Signs of an international downturn are also observed in trade data from South Korea, the world’s biggest producer of memory chips. Growth in chip exports eased to 2.1% in July from 10.7% in June, the fourth straight monthly slowing. In June, semiconductor stockpiles rose by the most in more than six years.

    It’s a similar story in Taiwan, which is another key player in electronics supply chains. Latest data indicate manufacturing on the island contracted in June and July, while production and demand slumped, with new export orders registering the biggest fall.

    The weakening momentum in these two canaries in the global coal mine is partly due to a slowing economy in China, which continues to impose lockdowns under its Zero-Covid policy. China’s factory activity unexpectedly contracted in July and property sales continue to shrink.

    In the US, the gross domestic product has fallen for two straight quarters, though the National Bureau of Economic Research refuses to call it a recession. In Europe, factory activity plunged in June, further darkening the outlook for both the continent and the wider world.

    Nonetheless, the International Monetary Fund still sees a global expansion this year, and slowing chip sales don’t automatically indicate a recession is imminent.  But they offer a glimpse into the health of an international economy that relies heavily on the tiny components to manufacture everything from cars to smartphones to computers.

    The Washington-based Semiconductor Industry Association, the peak world body says it represents 99% of the US chip industry by revenue and almost two-thirds of non-US chip firms. The sales it releases are compiled by World Semiconductor Trade Statistics.

    Related Post

    Most Popular

    Best Picks

    WISE Testing Solutions: Comprehensive Products and Services for Vehicle Development and EV Battery Testing

    WISE Testing Solutions Pvt. Ltd., a privately held company registered as a limited company, aims to provide a comprehensive range of products and services...

    Anton Paar: Revolutionizing EV Battery Testing with Standardization Initiatives

    Anton Paar, a distinguished company specializing in the development, production, and distribution of precision laboratory instruments and process measuring systems, alongside delivering customized automation...

    Exploring the Challenges and Testing Methods for Electric Vehicle...

    Aimil Ltd. is an esteemed organization celebrated for its exceptional expertise spanning multiple domains such as electric vehicle battery testing (both electrical and mechanical),...

    “The core idea behind u-blox has always been to...

    u-blox develops some of the world’s leading IoT communication and GNSS modules, chips and services supporting the industrial, automotive and consumer markets. Recently Andreas...

    PRAGYATMIKA: Empowering EV, Automotive, and E-Mobility with Cutting-Edge Technology...

    PRAGYATMIKA stands out as a leading provider of effective technology solutions for the EV, automotive, and e-mobility sectors. Their comprehensive services go beyond technological...

    Jean-Louis CHAMPSEIX, VP, Head of Corporate Sustainability, emphasizes :...

    ST addresses twofold imperatives - i.e. making technology itself more sustainable, and using technology to become more sustainable. ST is one of the largest...

    Exploring the Impact of Aarjay International’s Testing & Automation...

    Aarjay International is widely recognized for its outstanding expertise in delivering comprehensive test and automation solutions. Their wide range of services encompasses electronics and...

    Future of High Voltage EV: Wide Band Gap Semiconductors

    Article Courtesy: Sterling Gtake E Mobility Limited INTRODUCTION: Wide band gap semiconductors (SiC & GaN) are regarded as the next-generation power semiconductor for automotive applications...

    Motor Control and Human Interface Technologies from Virtual Forest...

    Forests are a vital part of human existence thus it relies upon them how to conserve the forests and maintain the ecological balance. Over...

    Must Read