In 2019, the chip industry experienced its worst decline in the last two decades. This is due to the negative consequences of that trade war that broke out between the largest chip maker, USA, and the largest consumer, China. Specifically, according to a semiconductor industry association announcement, after the 2-power trade, the chip industry's revenue fell 12% to $ 412 billion in 2019. This is the biggest drop since the 2001 chip industry, so industry sales fell 32% as the dot-com bubble burst. There were two key factors that led to the explosion of the dot-com bubble: the first reason was use The second reason was that many analysts focused on aspects of individual businesses that had nothing to do with how they generated their revenue or cash flow.
The pace of decline, however, fell last year as sales rose slightly in the fourth quarter, according to the Semiconductor Industry Association (SIA). The decline in sales in the industry has not prevented investors from betting on a future rebound. In 2019, five of the Index's top 10 performers S&P 500 Index it was manufacturers chips or Companies chip equipment.
Memory chips suffered the most severe blow. Specifically, the prices of these chips fell on the market as production surpassed demand. Memory chips revenue has fallen by 33% since 2018 due to lower memory computer. Demand for memory chips has declined in all markets. Especially in China, whose consumers and factories supply them eventually products in the rest of the world they represent more than one third of their world consumption electronic accessories, the sales memory chips dropped 8,7%, according to the Semiconductor Industry Association. In America, respectively, memory chips sales fell much more than other regions, reaching 24%.