Trade war plunges global chip sales to $ 98.2 billion

Trade tensions between the United States and China have created uncertainty in the semiconductor industry, with global sales falling for a second consecutive quarter.
Semiconductors are tiny chips that incorporate the latest technologies, from flat-screen TVs to smartphones to electric cars and the Internet.
According to data from the Semiconductor Industry Association (SIA), the body representing US interests in chip manufacturing, global chip sales reached $ 98.2 billion for the quarter ended June 30, down from 16.8% compared to 117.9 billion USD. The previous year
"Annual sales of all clbades of semiconductor products have declined in all major regional markets," said John Neufer, president of the Semiconductor Industry Association.
Chip sales in the first quarter rose from $ 111.1 billion a year earlier to $ 96.8 billion, down 13%.
The latest quarterly data came a few days after US President Donald Trump pledged to launch a new 10% tariff on Chinese goods valued at $ 300 billion. from early September.
The semiconductor industry badociation warned the International Trade Commission in June that a new round of US $ 300 billion worth of trade tariffs with China would have serious consequences for the US economy.
According to the badociation: "IT companies are an important sector of the US economy and any downturn in this sector will have a multiplier effect on a wide range of other sectors, which significantly affects US economic growth and there is no scenario where tariffs on technology products The information is positive for the US economy. "
According to research and consulting firm Bernstein, China manufactures more than 90% of smartphones, 65% of personal computers and 67% of smart TVs in the world.

However, the country had to buy a lot of chips to manufacture these devices from abroad, especially the United States, but the pressure exerted by the US authorities on Chinese companies to stop the development of high technology in Beijing it prompted to seek self-sufficiency in the semiconductor industry.
According to the chief economist of the Chinese Ministry of Industry and Information Technology, the production of Chinese semiconductor industry has reached 1.6 trillion yuan (231 billion) in 2018, or about 50% of the world market.