Circuits Assembly - February 2008 - (Page 16)

W TCH A Defending Their Turf Trends in the U.S. electronics equipment market (shipments only). % Change Nov.* YTD Sept. Oct.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 rRevised. 1Includes Market Edited by Chelsey Drysdale 2008 Electronics Outlook Trimmed 0.6 -2.0 -10.0 2.3 -2.0 4.4 -0.8 -4.5 3.3 23.3 2.8 5.1 -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 -6.2 5.1 -1.1 -8.0 -2.7 14.4 18.3 -2.4 8.1 -1.5 4.8 0.5 2.9 2.9 -3.6 1.5 26.3 3.6 -0.8 0.0 2.1 1.8 -2.1 EL SEGUNDO, CA – Global electronics equipment revenue is expected to rise to $1.6 trillion in 2008, up 6.6% from 2007, iSuppli (isuppli.com) said. The research firm trimmed 40 basis points from its previous forecast of 7% growth. The firm expects 2009 growth of 5.3%. Economic concerns and reductions in capital spending will impact equipment revenue, the firm said. On the strength of a second-half surge in sales, particularly for notebook PCs and 3G handsets, iSuppli raised its 2007 electronics equipment growth outlook to 7.4%, from 6.8%. Experts Cautious on Semis OAK BROOK, IL – A coterie of leading semiconductor experts in December said looming market concerns over higher oil prices, the U.S. mortgage crisis and fears of a possible recession make the outlook for consumer spending a cautious one. The market is slipping slowly, the panel said, but there is hesitant optimism for overall growth. Consumer spending is key because, according to the panel, assembled by the Semiconductor Industry Association (sia-online.org), that group now accounts for more than 50% of semiconductor consumption. SIA predicts a 7 to 8% CAGR from 2006 and 2011, up over 2007 (4%) but below historical patterns. iSuppli Corp (isuppli.com) forecasts 2008 growth of 7.5%, Gartner Dataquest (gartner.com) expects growth of about 6%, Semico Research (semico.com) forecasts 10-11% growth, while analyst Mike Cowan forecasts an 8.15% hike. *Preliminary. semiconductors. Seasonally adjusted. Source: U.S. Department of Commerce Census Bureau, Jan. 3, 2008 December Manufacturing Slows; Backlogs Rise TEMPE, AZ – The housing market felled manufacturing in December, as the PMI dropped 3.1 points to 47.7%, falling below the 50% benchmark for the first time in 11 months. New orders decreased 6.9 points to 45.7%, while production dropped 4.6 points to 47.3%, says the Institute for Supply Management (ism.ws). The 2007 PMI corresponds to a 3.2% increase in real GDP. The December PMI corresponds to 1.8% growth. For the month, inventories and employment were down, while customer inventories and order backlogs were up. “Industries close to the housing market appear to be struggling more than others, and those involved in exports seem to be doing better,” said ISM spokesman Norbert J. Ore. Aug. PMI New orders Production Inventories Customer inventories Backlogs 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 Dec. 47.7 45.7 47.3 45.5 51.5 43.0 Organic Materials to Spike GLEN ALLEN, VA – The market for organic electronics materials will be worth $4.9 billion in 2012, surging to $15.8 billion in 2015, according to analyst NanoMarkets (nanomarkets.net). Leading applications will be RFID, display backplanes and OLED lighting and displays. New kinds of organic semiconductor materials such as rubrene and hybrid materials, including formulations with carbon nanotubes, will spur that market to $4.9 billion in revenues by 2015. The substrate business will grow to $6.9 billion, a majority the flexible type and specially prepared for organic electronics through novel forms of barrier coatings and reduced surface roughness. Source: Institute for Supply Management, Jan. 2, 2008 Industry Market Snapshot Book-to-bills of various components/equipment. July Semiconductor equipment1 Semiconductors2 Rigid PCBs3 (North America) Flexible PCBs3 (North America) Computers/electronic products4 Sources: 1SEMI, 2SIA Metals Index Sept. 0.79 4.39% 1.08 1.08 4.90 Bureau, Oct. 0.80r 4.58%r 1.08 1.10 4.98r Nov. 0.82p 3.93%p 1.06 1.02 4.91p Date 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 10/8/07 $6.37 $1.75 $193.85 $3.62 Price Per Lb. 11/12/07 12/10/07 $7.12 $1.58 $215.79 $3.07 $7.64 $1.14 $213.94 $3.04 1/07/08 $7.44 $1.21 $224.57 $3.14 Aug. 0.82 2.73% 1.06 1.07 4.94 3IPC , 4Census 0.83 1.91% 1.02 1.04 5.08 (3-month moving average growth), ppreliminary, rrevised 16 Circuits Assembly FEBRUARY 2008 circuitsassembly.com http://www.isuppli.com http://www.isuppli.com http://gartner.com http://ism.ws http://semico.com http://nanomarkets.net http://circuitsassembly.com

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Circuits Assembly - February 2008 Contents Caveat Lector Letters Industry News Market Watch Global Sourcing Better Manufacturing Maximizing Lean Copper As a Viable Solution for IC Packaging Embedded Active Components for High-Rel Products Cover Story: XRF Equipment As a RoHS Screening Tool Tech Tips Selective Soldering Test and Inspection Process Doctor Pb-Free Lessons Learned Product Spotlight Ad Index Assembly Insider Technical Abstracts

Circuits Assembly - February 2008

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