Chip sales fell by 20.7% year-on-year to $39.7 billion in February, according to the Semiconductor Industry Association (SIA).

Compared to January, semiconductor sales fell by 4% (from $41.3 billion). According to SIA CEO John Neuffer, the decline in sales was due to “market cyclicality and macroeconomic headwinds.” However, he believes that the medium- and long-term prospects for the market remain bright due to growing demand in several markets.

Sales in China fell by 34.2% year-on-year, in Asia Pacific and other regions by 22.1%, and in North and South America by 14.8%. Sales only grew in Japan, by 1.2%.

In January, chip sales fell by 18.5% year-on-year to $41.33 billion. Compared to December of the previous year, the market saw a 5.2% decline in sales in monetary terms.

Sales fell most sharply year-on-year in China (31.6%), Asia Pacific and other regions (19.5%), and North and South America (12.4%). Europe and Japan saw a slight increase of 0.9% and 0.7%, respectively.