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FRANKFURT – The German semiconductor market will fall 12% to $13.4 billion in 2019, according to Stephan zur Verth, chairman of the Semiconductor Devices Division of ZVEI's Electronic Components and Systems Association.

In the Europe region, which also includes the Middle East and Africa (EMEA), the market will decline 6% to $40 billion in 2019.

In 2020, the German semiconductor market will grow about 5%.

The global semiconductor market will shrink 12% to over $413 billion this year.

"The main reason for the sharp decline in the market is macroeconomic uncertainty. This results, among other things, from the trade conflicts between the US and China and the US and Europe, the impending Brexit and the weakening automotive market," said Verth, who also expects a plus for 2020 with regard to the world semiconductor market. "We expect sales to increase 4% to $429 billion, driven, among other things, by the onset of 5G technology and the use of artificial intelligence. "

Overall, the industry is optimistic about the coming years. The long-term growth trends are intact, and the societal challenges resulting from, among other things, climate change, demographic change and scarcity of resources required new digital solutions, says ZVEI.

"Our industry will move even more into a key role in the coming years. In Europe, therefore, we need a strong microelectronics industry that serves the digital transformation with its own products and solutions."

At 62%, the Asia/Pacific region will continue to have the highest share of the world market for semiconductors in 2019, of which China alone now accounts for well over half. The second strongest region is North and South America, which will lose a small share of the market, with 20%, compared to the previous year. EMEA and Japan are the weakest sales markets in the semiconductor market, accounting for 10% and 9%, respectively.

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