Global Semiconductor Sales Hit Record High in Q2, Up 8.3% from Q1

[Asia Economy Reporter Jeong Hyunjin] In the second quarter of this year (April to June), global semiconductor sales reached $133.6 billion (approximately 153.1 trillion KRW), marking an 8.3% increase compared to the first quarter, which had set an all-time high record. This is interpreted as a continuation of sales growth driven by the full-scale onset of the semiconductor 'super cycle.'

According to the industry on the 7th, the Semiconductor Industry Association (SIA) of the United States recently announced in a report that the global semiconductor sales for this year reached $133.6 billion, up 29.2% year-on-year and 8.3% quarter-on-quarter. The SIA cites data from the World Semiconductor Trade Statistics (WSTS) and publishes monthly sales figures that include about 98% of the U.S. semiconductor industry and approximately two-thirds of semiconductor companies outside the U.S.

Monthly Semiconductor Sales Trends Worldwide (Source: Semiconductor Industry Association, USA)

In the first quarter, global semiconductor sales amounted to $123.1 billion, surpassing the previous super cycle peak in the third quarter of 2018 and setting an all-time high since SIA began publishing statistics. Considering this, the second quarter sales of this year have broken the record again. Monthly, global semiconductor sales increased from $40 billion in January to $44.5 billion in June. Since May ($43.6 billion), semiconductor companies have been achieving monthly sales exceeding the $41.8 billion recorded in October 2018, when the super cycle was in full swing.

Sales increased across all regions worldwide. As of June, Europe showed the highest growth with a 43.2% increase year-on-year, while the Asia-Pacific region also grew by 34.0%. China’s sales rose by 28.3%, and the Americas and Japan showed growth rates of 22.9% and 21.2%, respectively.

John Neuffer, President of SIA, stated, "Second-quarter semiconductor sales grew significantly compared to the second quarter of last year across all major product categories and key regions," adding, "As the world becomes smarter, more productive, and increasingly connected, semiconductor demand is expected to grow in the long term."

With the global semiconductor market performing well, major domestic semiconductor companies also posted strong results in the second quarter. Samsung Electronics announced in its Q2 earnings report that its semiconductor (DS) division recorded sales of 22.74 trillion KRW, a 20% increase. SK Hynix also revealed that its Q2 sales reached 10.3217 trillion KRW, up 22% quarter-on-quarter.

In the third quarter, global semiconductor sales are expected to continue growing, centered on the memory market. Market research firm DRAMeXchange reported last month that the fixed transaction price of DDR4 8Gb PC DRAM rose 7.89% month-on-month to $4.10. This marks the first time in over two years, since April 2019, that DRAM fixed prices have entered the $4 range. The fixed transaction price of NAND flash 128Gb 16Gx8 MLC, a general-purpose product for memory cards and USBs, also increased by 5.48% month-on-month to $4.81.

Taiwanese market research firm TrendForce forecasted that the average fixed transaction price of DRAM in the third quarter will rise 3-8% quarter-on-quarter, and NAND fixed prices are also expected to increase by an average of 5-10% compared to the second quarter. Industry insiders anticipate that semiconductor companies’ sales will continue to grow for the time being as memory semiconductor prices rise amid sustained semiconductor demand.

This content was produced with the assistance of AI translation services.