Circuits Assembly - January 2008 - (Page 12)

W TCH A Semis Rebound in October Trends in the U.S. electronics equipment market (shipments only). % Change Oct.* YTD August Sept.r Computers and electronics products Computers Storage devices Other peripheral equipment Nondefense communications equipment Defense communications equipment A/V equipment Semiconductors Components1 Nondefense search and navigation equipment Defense search and navigation equipment Medical, measurement and control 0.7 30.8 0.2 -1.5 2.4 1.1 -2.3 -8.5 -0.4 -8.0 2.3 0.4 -0.6 18.5 -8.5 0.8 -1.0 -2.6 -10.5 -11.6 0.3 3.0 -3.3 2.3 2.2 -6.8 3.8 -0.5 -8.2 -4.1 13.8 16.8 -1.7 7.4 1.9 4.7 0.4 -2.8 -11.1 2.6 -2.0 2.8 0.0 -5.1 4.1 21.7 3.8 4.6 Market Edited by Chelsey Drysdale Report: Global Electronics Market to Reach $3.2T by 2012 WELLESLEY, MA – The world electronics market was worth some $1.8 trillion in 2006, and is expected to increase to $2 trillion in 2007 and $3.2 trillion in 2012, a CAGR of 9.5% over the next five years, reports BCC Research (bccresearch.com). Industrial products account for 39.6% of total electronics sales, while computers have the second largest share at 20%. Semiconductors make up 13.5%; consumer makes up 13.4%; communications account for 9.9%, and automotive total the remaining 2.6%, according to the report, “Global Electronics: High Growth Products and New Markets.” Most regions of the world (especially Asia-Pacific) are seeing rapid growth in electronics manufacturing and consumer demand, BCC says. The industry has been growing rapidly since the late 1990s, and it will continue to do so as consumers in developed countries upgrade current products, and those in developing economies make first-time purchases, the research firm adds. rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted. Source: U.S. Department of Commerce Census Bureau, Dec. 5, 2007 New Mfg. Orders Up in November TEMPE, AZ – New orders for manufactured goods were up slightly in November, and production grew 2.3 points to 51.9%. The new orders index stood at 52.6%, above the 50% threshold, signaling expansion, the Institute for Supply Management (ism.ws) reported. The November PMI, a measure of the nation’s productivity, was down 10 basis points sequentially. Inventories were down 30 basis points at 46.9%; customer inventories dropped five points to 49%. Backlogs decreased 4.5 points to 41.5%. “The rate of growth in the sector was down slightly compared to October,” said ISM spokesman Norbert J. Ore. “While other segments of the economy are struggling, manufacturing continues to grow due to continuing strength in new orders, and a recovery in production from last month. Prices, driven higher by energy prices, are once again the major concern.” Prices were up 4.5% in November. Employment contracted during the month. July PMI New orders Production Inventories Customer inventories Backlogs 53.8 57.5 55.6 48.5 51.0 52.0 Aug. 52.9 55.3 56.1 45.4 49.0 50.5 Sept. 52.0 53.4 54.6 41.6 50.0 51.0 Oct. 50.9 52.5 49.6 47.2 54.0 46.0 Nov. 50.8 52.6 51.9 46.9 49.0 41.5 Q3 PC Shipments Up 15.5% LOS ALTOS, CA – Third-quarter PC shipments were up 15.5% year-over-year, says research firm Henderson Ventures (hendersonventures.com). PC growth rebounded with the help of low-cost shipments to emerging economies and growing acceptance of Microsoft’s Vista operating system, while global PC shipment growth has been accelerating, reports Henderson. For 2007, shipments are predicted to hit 264 million, a growth rate of 11.6%, says the firm. The traditional two-year cycle is forecast to continue through 2009, but without a major dent in the expected growth rate for next year. The introduction of WiMax is expected to boost PC purchases next year; as WiMax gains acceptance, users will acquire the capability via a new portable PC, says Henderson. Also, the impact of Vista is likely to peak in 2009. However, global saturation, including many emerging markets, will tamp down the achievable growth rates for the foreseeable future. Henderson forecasts a 10.2% spike in 2009, but notes that even that impressive pace is far below peak levels. Source: Institute for Supply Management, Dec. 3, 2007 Industry Market Snapshot Book-to-bills of various components/equipment. June Semiconductor equipment1 Semiconductors2 Rigid PCBs3 (North America) Flexible PCBs3 (North America) Computers/electronic products4 Sources: 1SEMI, 2SIA Metals Index Aug. 0.82 2.73% 1.06 1.07 4.94 Bureau, Sept. 0.79r 4.39%r 1.08 1.08 4.90r Oct. 0.83p 5.29%p 1.08 1.10 4.98p LME Cash Seller and Settlement for Tin LME Cash Seller and Settlement for Lead Handy and Harman Silver (COMEX Silver) LME Cash Seller and Settlement for Copper 9/10/07 $6.37 $1.37 $186.09 $3.34 Price Per Lb. 10/8/07 11/12/07 $7.12 $1.75 $193.85 $3.62 $7.64 $1.58 $215.79 $3.07 12/10/07 $7.44 $1.14 $213.94 $3.04 July 0.83 1.91% 1.02 1.04 5.08 3IPC , 4Census 0.91 1.87% 1.01 1.12 4.83 (3-month moving average growth), ppreliminary, rrevised 12 Circuits Assembly JANUARY 2008 circuitsassembly.com http://bccresearch.com http://www.ism.ws http://www.hendersonventures.com http://www.hendersonventures.com http://circuitsassembly.com

Table of Contents Feed for the Digital Edition of Circuits Assembly - January 2008

Circuits Assembly - January 2008 Contents Caveat Lector Industry News Market Watch Talking Heads Focus on Business On the Forefront Screen Printing Better Manufacturing Walking on Water Flux Selection for Lead-Free Wave Soldering An A-to-Z Guide to X-Ray Inspection, Part II Evolution in Action Research Priorities for the Electronics Industry Selective Soldering Process Doctor Pb-Free Lessons Learned Materials World Product Spotlight Ad Index Assembly Insider Technical Abstracts

Circuits Assembly - January 2008

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