Sales of semiconductor chips fell 4% globally in February month over month, to $39.7 billion, according to a report from the Semiconductor Industry Association (SIA) on Thursday.

That figure is 20% lower compared to $50 billion in sales seen in February 2022, according to SIA data.

SIA President and CEO John Neuffer said, “Global semiconductor sales continued to slow in February, decreasing year-to-year and month-to-month for the sixth consecutive month.”

Neuffer added “Short-term market cyclicality and macroeconomic headwinds have led to cooling sales, but the market’s medium- and long-term prospects remain bright, thanks to growing demand across a range of end markets.”

The report’s regional breakdown showed that in Japan, sales year to year increased slightly in February (1.2%), however they declined in Europe (-0.9%), North and South America (-14.8%), China (-34.2%), and the remainder of the world (-22.1%). Sales month to month fell across all regions, the report noted.

The SIA represents nearly two thirds of non-US semiconductor companies, and 99% of the broader semiconductor industry by revenue.

Vital to the production of most modern electronic devices, from smartphones to self-driving cars, washing machines, computers, and even military devices like guided missiles, the majority of semiconductors are produced in East Asia, with Taiwan producing over 60% of the global supply. The majority of the remainder is produced by either South Korea, Japan, the US, or China.