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Archive for August 5th, 2022

June Swoon—IC Sales Turn Negative as Economy Weighs on Market

Friday, August 5th, 2022

Never-before seen decline in June IC market driven by steep drop in memory pricing.

The IC market recorded its first-ever June sequential sales decline this year, based on data from WEMA, SIA, and WSTS dating back to 1976. Typically, high single-digit or double-digit sales gains have been the pattern for June IC sales. Even in its previously weakest year (1985), June IC sales increased 1%.  Never, until this year, have June IC sales declined.

This extraordinary result was startling for at least two reasons.  First, June is a quarter-ending five week month and that alone has historically been enough to generate a sales uptick compared to the four-week month of May. Second, June is normally one of the strongest months of the year for IC sales since OEMs are buying chips to build into their new systems in time for back-to-school and end-of-year holiday sales.
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