In a positive sign for chipmakers during a year of uncertainty, industry officials on Monday said November 2020 chip sales jumped by 7% over a year earlier to $39.4 billion.
That amount was also 1.1% higher than October 2020 when sales reached $39 billion, according to the Semiconductor Industry Association.
Sales in the Americas in November were $8.46 billion, up by 12.5% over a year earlier-- the largest percentage improvement of any region. November sales in the Americas were also up by 2% over October sales. November was the eleventh consecutive month that sales increased by double digits in the region.
Global sales for all of 2020 are tracking well ahead of 2019 “despite substantial headwinds caused by the pandemic and other macroeconomic factors,” noted SIA CEO John Neuffer in a statement. The November uptick of 7% was the highest percentage increase on a year-to-year basis since March.
While semiconductor sales were up in 2020, that nonetheless compares to a relatively down year in 2019. Sales in 2019 were $412 billion, a decrease of 12% from 2018’s total sales of nearly $ 469 billion, the industry’s higher-ever annual total. At the end of 2018, monthly sales had reached more than $42 billion, ahead of the November 2020 total of $39.4 billion.
For all of 2020, the World Semiconductor Trade Statistics organization in December forecast total global market sales to reach $433 billion, up 5% over 2019, but still down $36 billion from 2018’s record high—a decrease of 7.6%.
In 2021, WSTS has also projected global sales to grow by 8.4% with double digit growth in memory and optoelectronics. All products and regions are expected to grow in 2021.
Looking at the multi-year upward trend, semiconductor sales saw strong growth globally from $27 billion in monthly sales in 2016 to November 2018’s high point of $42 billion.
The SIA uses statistics compiled by the WSTS organization. SIA represents 98 % of the U.S. semiconductor industry by revenue along with nearly two-thirds of non-U.S. chip firms.
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