According to The Semiconductor Industry Association, the worldwide sales of semiconductors reached $14.5 billion in the second quarter of 2023. This means it is an increase of 4.7% in comparison to the first quarter of the year, however it is 17.3% less when compared to the same quarter of the previous year.
The Semiconductor Industry Association President and CEO, John Neuffer, remained optimistic in his current analysis of the market. He claims that even though semiconductor sales are down in comparison to the previous year, revenue is up for the fourth consecutive month – providing some reassurance that the market may continue on this trajectory for the rest of the year.
As mentioned in our previous blog on the global semiconductor sales increase in April , the WSTS (World Semiconductor Trade Statistics) published its most recent forecast in May. In this forecast it was predicted that there would be a downturn of 10.3% in 2023, followed by a robust recovery as they estimate a growth percentage of 11.8% for 2024.
The chip shortage may have lessened recently, but the slow transition to more advanced chips is causing others to be stockpiled while others are still in short supply.
One of the industry’s that was impacted the most by the chip shortage was the automotive industry, which was dealt a significant blow by the COVID-19 pandemic. It is estimated that more than 9 million units of light-vehicle production was lost because of the semiconductor shortage. Fast forward to quarter one and two of 2023 and the same losses related to semiconductor shortages decreased to around 524,000 global units. So, although the supply shortages remain there, they are easing off over time and availability has become much more predictable, allowing automotive manufacturers to plan ahead.
Although the chip shortage seems to have eased off back to pre-pandemic levels, some predict we may face another shortage on the horizon. Geopolitical tensions between Russia and Ukraine may have an impact, as well as the unpredictability of natural disasters which has the potential to prevent manufacturing. Then there is the other influencing factors, such as AI and new technology which seems to be progressing at a unpredictable rate – so there is always the uncertainty of how this will impact demand.
With the uncertainty of global events and other influencing factors, it can be difficult to plan ahead for these circumstances that directly affect supply chains and demand.
At Lantek, we are here to make sure you are as organised as possible in such events. Whether you’re looking for everyday components or obsolete electronic parts, we are here to support you every step of the way.
Our Scheduled Ordering Service allows you take more control of your production line, whilst saving money in the process. We give you the convenience of placing one large order, up to twelve months in advance. This gives you the added benefits of price breaks, lower unit costs that are fixed for a year and the additional piece of mind of knowing that your stock is held in a dedicated facility allocated only for your use.