Manufacturing a semiconductor wafer. Photo: Alfredo Sosa/The Christian Science Monitor via Getty Images

Global chip sales rose nearly 14% last year to a record $468.8 billion, according to new numbers from the Semiconductor Industry Association. However, growth slowed significantly in the second half as the industry enters what appears to be a period of slower growth.

Why it matters: Chips are at the heart of all manner of electronics, from phones and PCs to broader markets like cars and appliances. Plus, unlike the gear they end up in, a significant number of semiconductors are not only designed in the U.S. but also manufactured here.

  • Chip sales growth is seen slowing to just 2.6% this year, according to the World Semiconductor Trade Statistics organization.
  • "We may be moving into a cyclical period [where we are] experiencing slower growth," SIA CEO John Neuffer said in an interview. But he added that the industry's long-term outlook is "very strong" as more chips go into more products.

Slowing growth: Several factors are weighing on the chip business, beyond the fact that it is a cyclical industry that has boomed for the last couple of years. In particular, there are concerns that the U.S.-China trade dispute as well as a slowing domestic Chinese market for consumer electronics could be hurting business.

  • "We want this to get resolved," Neuffer said. "We want the tariffs to get lifted."
  • Ideally, he said, the issues would be resolved in a way that increases intellectual property protections, a key concern for the U.S. high tech community.

By the numbers:

  • Total chip unit shipments topped 1 trillion for the first time.
  • Memory was the largest and fastest growing type of semiconductor, with sales up 27.4% to $158 billion.
  • Sales in 2018 rose in every region, led by China, where sales were up 20% for the year.

Go deeper: Computer chips are still "Made in USA"

Go deeper

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 11:30 a.m. ET: 11,304,534 — Total deaths: 531,659 — Total recoveries — 6,111,195Map.
  2. U.S.: Total confirmed cases as of 11:30 a.m. ET: 2,841,124 — Total deaths: 129,689 — Total recoveries: 894,325 — Total tested: 34,858,427Map.
  3. States: Photos of America's pandemic July 4 ICU beds in Arizona hot spot near capacity.
  4. Public health: U.S. coronavirus infections hit record highs for 3 straight days.
  5. Politics: Trump extends PPP application deadlineNew Jersey gov. wants national face mask requirement
  6. World: Mexican leaders call for tighter border control as infections rise in U.S.
  7. Sports: 31 MLB players test positive as workouts resume.
  8. 1 📽 thing: Drive-in movie theaters are making a comeback.
3 hours ago - Sports

Sports return stalked by coronavirus

Tampa Bay Rays left fielder Austin Meadows bumps elbows Friday during a workout at Tropicana Field. Photo: Kim Klement/USA Today Sports via Reuters

When MLB teams arrived at the ballpark this weekend for the first summer workouts of 2020, the comforting sounds of baseball brought smiles to players' faces.

Between the lines: Even the loudest crack of the bat couldn't mask the eerie silence or distract from the ever-present coronavirus threat.

3 hours ago - Health

239 scientists call on WHO to recognize coronavirus as airborne

People walk at the boardwalk in Venice Beach. Photo: Apu Gomes/AFP via Getty Images

A group of 239 scientists in 32 countries is calling for the World Health Organization to revise its recommendations to account for airborne transmission as a significant factor in how the coronavirus spreads, the New York Times reports.

The big picture: The WHO has said the virus mainly spreads via large respiratory droplets that fall to the ground once they've been discharged in coughs and sneezes. But the scientists say evidence shows the virus can spread from smaller particles that linger in air indoors.