In November global chip sales rose for the first time in more than a year. Global semiconductor revenue added up to $48 billion in November, a 5.3% increase from a year earlier, according to the Semiconductor Industry Association. Sales rose a more moderate 2.9% from October.
But the good news didn’t extend to all chip segments. The increase in demand comes from chips used in artificial intelligence and related technologies. Bread and butter, older segment such as memory continued to struggle.
For example, Samsung Electronics, the world’s largest memory chipmaker, this week posted its sixth straight quarter of declining operating profit while revenue fell.
China led the rise in global chip sales in November, with the world’s second-largest economy buying 7.6% more than a year earlier. Chip sales to the Americas gained 3.5% while those to Europe rose 5.6%. Sales to Japan decreased 2.8%, according to the Semiconductor Industry Association.
The numbers “suggest” another booming quarter for AI chip-makers such as Nvidia (NVDA), a solid quarter for chip-makers with auto and smartphone exposure such as Qualcomm (QCOM) and NXP Semiconductors (NXPI), and a tough quarter for memory chip companies such as Micron Technology (MU).
