Global chip sales decline for fifth straight month

Global chip sales dropped nearly 15% in May from a year ago and logged a fifth straight month of declines, according to the Semiconductor Industry Association Monday, as the industry has struggled with inventory issues over the past year. Global chip sales reached record high levels in the third quarter of 2018, and then declined for a second straight quarter. Global chip sales declined 14.6% to $33.1 billion from the year-ago period, SIA said. With May's results, it appears as chip sales are on track for a third quarter of consecutive declines. "Global semiconductor sales fell well short last year's monthly total in May, marking the fifth straight month of negative sales growth on a year-to-year basis," said John Neuffer, SIA president and chief executive, in a statement. "On a month-to-month basis, global sales increased modestly and sales into the Americas increased for the first time in seven months, although year-to-year sales into the Americas were down substantially." The PHLX Semiconductor Index is up 30% for the year, compared with an 18% gain in the S&P 500 index and a 22% gain in the tech-heavy Nasdaq Composite Index .

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