Chip sales in July are still declining! Analysts: The semiconductor industry is facing headwinds

According to data from the Semiconductor Industry Association (SIA), following a decline in chip sales in May and June, overall semiconductor sales in July remained poor, down 15% from the same period last year. Analysts believe this shows that chip manufacturers are still facing problems of weak demand and excessive inventory.

According to Bloomberg, Nomura Securities analyst David Wong said this means that the semiconductor industry is still facing headwinds, which is consistent with the future guidance given by many chip manufacturers when releasing financial reports in the past six weeks, and will also serve as an indicator of the chip-related market.

Citigroup and Morgan Stanley both said that chip sales in July did not meet their expectations. Morgan Stanley believes that due to the poor sales of memory chips, even if the logic chips perform well, they cannot make up for the gap. Morgan Stanley analyst Joseph Moore said that due to the constant changes in demand in the terminal market, the overall chip market performance is still weak.

However, research firm Longbow Research believes that demand will not pick up in the second half of the year, and analyst Shawn Harrison even said that the market's general view on the fourth quarter of this year is too optimistic.

However, RBC Capital Markets believes that given the poor sales for several consecutive months, the semiconductor industry may have almost bottomed out and the possibility of continued decline is not high.

The Philadelphia Semiconductor Index fell 2.2% on Tuesday, due not only to poor data released by the Semiconductor Industry Association, but also to the impact of new tariffs implemented on September 1. Bloomberg pointed out that China is not only a major source of profit for chip manufacturers, but also an important link in the supply chain, making chip manufacturers deeply affected by the Sino-US trade war.