An international statistics agency forecasts the global semiconductor market will modestly contract this year but return to growth in 2020.

The World Semiconductor Trade Statistics, a market researcher on the supply and demand of chips, has released its latest forecast.

It says that following 13-point-seven percent growth in 2018, the worldwide semiconductor market is expected to contract three percent in 2019 to 454-point-five billion dollars but return to growth in 2020.

The readjusted figure of a three percent fall is sharply down from its previous forecast of two-point-six percent growth issued in November.

Memory chip sales, which hit an all-time high last year, are forecast to drop more than 14 percent to some 135 billion dollars this year while all other products are expected to grow in the low single digits compared to 2018.

The report said that for 2019, the Americas, Europe and Asia Pacific are expected to show negative growth after posting strong growth in 2018 for a second consecutive year.

An industry official stressed that the prevailing view is the market will return to growth next year as inventory levels are being quickly modified and there are continuously new areas of demand, including artificial intelligence and autonomous cars.