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Global chip sales fell 14.6% year-on-year in May, with negative growth for five consecutive months.

Global semiconductor sales fell 14.6% to $33.1 billion in May from a year earlier, according to data released Monday by the Semiconductor Association of America (SIA), compared with $38.7 billion in the same period last year, a negative growth for the industry for five consecutive months.

John Neuffer, president and CEO of SIA, said: "If global sales grow slightly on a monthly basis, sales in the Americas have increased for the first time in seven months, albeit significantly lower than in the same period last year."

Regionally, semiconductor sales in China, America and Japan are growing by 5.4%, 1.4% and 0.9% respectively.

SIA reports that the industry has been struggling to cope with inventory problems over the past year, with chip sales likely to decline for a third consecutive quarter as sales fell in May. Chip sales in the first quarter of this year were only $96.8 billion, down from $114.7 billion last year.

With the development of artificial intelligence and cloud services technology, the global semiconductor industry has developed strongly in the past two years, but this growth momentum is likely to stop this year. In addition to SIA statistics, previous estimates based on market research firm IDC predicted that global semiconductor revenue would decline after three consecutive years of growth, with global semiconductor revenue expected to decline by 7.2% in 2019.

It is reported that this year's market downturn is largely due to weak demand and excess inventory in some major markets, such as automobiles, mobile phones and cloud infrastructure. Among them, memory chips have become the most important product in excess inventory.

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