Circuits Assembly - June 2008 - (Page 16)

W TCH A A/V Recovery Trends in the U.S. electronics equipment market (shipments only). % Change Mar.* YTD Jan. Feb.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 Printed Electronics to Hit $300B by 2028 DUBLIN – Printed electronics will be a $300 billion market within 20 years, claims a recent research report, with the largest segment printed transistors and memory. The technology, says Research and Markets (researchandmarkets.com), will drive lighting, displays, signage, electronics, medical disposables, smart packaging and smart labels. The firm claims more than 150 organizations across the chemical, plastics, printing, electronics and other industries are developing printed transistors and memory, with the first products being sold this year. 8.4 -1.5 9.1 -5.0 -4.9 3.4 -2.7 35.5 2.5 13.9 1.1 10.7 -10.4 -2.8 0.6 -2.1 -0.5 14.8 -11.3 -31.9 -3.9 -17.1 -4.7 -5.4 -1.0 3.1 5.5 1.0 0.8 13.9 1.6 -11.4 0.7 4.4 5.1 -1.8 4.8 6.6 15.1 3.5 -0.4 24.4 -14.5 2.9 0.3 18.9 3.4 12.7 CE Sales to Rise 10% this Year MARJOCA, SPAIN – Sales of consumer electronics at retail stores will rise 8% this year, down from 14% in each of the past two years, says Jürgen Boyny, a consumer electronics analyst for market research institute GfK (gfk.com). Mobile phones will make up about 25% of consumer electronics sales this year, he said, followed by flat-panel TVs (19%), PCs (17%) and digital cameras (6%). Among the regions, China will grow the fastest, at 22%, followed by the Middle East (20%), Russia (20%), South America (17%), Western Europe (12%) and the US (10%). *Preliminary. semiconductors. Seasonally adjusted. Source: U.S. Department of Commerce Census Bureau, May 2, 2008 April PMI a Mixed Bag TEMPE, AZ – Manufacturing failed to grow for the third consecutive month in April, as the PMI registered 48.6%, flat with March. The good news: Backlogs grew, breaking six consecutive months of decline, and new export orders showed continued strength. Customer inventories dropped. The computer and electronic products sector reported growth. The general economy appears to be growing, as a PMI over 41.1%, over a period of time, generally indicates expansion. The year-to-date PMI is 49.1%. Based on historical correlations, the PMI through April corresponds to a 2.5% increase in real gross domestic product. ISM (ism.ws) spokesman Norbert Ore stated, “The manufacturing sector failed to grow in April, as the PMI fell below 50% for the third consecutive month. New orders and production are slowly declining, but prices continue to rise at highly inflationary rates.” For the month, backlogs were up four points to 51.5%; customer inventories dropped six points to 45%; new orders were flat at 46.5%, and production ticked up to 49.1%. Dec. PMI New orders Production Inventories Customer inventories Backlogs 48.4 46.9 48.6 45.4 51.5 43.0 Jan. 50.7 49.5 55.2 49.1 49.5 44.0 Feb. 48.3 49.1 50.7 45.4 49.0 45.0 Mar. 48.6 46.5 48.7 44.9 51.0 47.5 Apr. 48.6 46.5 49.1 48.1 45.0 51.5 TFI Lowers EMS Outlook ALAMEDA, CA – Technology Forecasters (techforecasters.com) lowered its five-year forecast for electronics production and EMS growth, saying, “economic drivers behind the numbers are a clear signal that the U.S. is in a recession.” The research firm also raised its forecast for ODMs, based on final 2007 electronics manufacturing data. The firm now predicts the total available market will grow an aggregate 6.1%; EMS will rise 11.2%, and ODMs will jump 18.5% through 2011. The overall market for outsourced goods and services hit $292 billion in 2007, TFI said. In September, TFI forecast growth rates of 7.1% for the TAM, 13% for EMS and 11.9% for ODMs. Source: Institute for Supply Management, May 1, 2008 Industry Market Snapshot Book-to-bills of various components/equipment. Nov. Semiconductor equipment1 Semiconductors2 Rigid PCBs3 (North America) Flexible PCBs3 (North America) Computers/electronic products4 0.82 4.39% 1.06 1.02 4.97 Dec. 0.85 3.27% 1.01 1.00 4.94 Jan. 0.89 1.70% 0.97 0.96 4.77 Feb. 0.92r 1.35%r 0.99 0.96 4.99r Mar. 0.89p 1.78%p 1.00 0.99 4.95p Metals Index 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 5/8/07 $6.30 $0.94 $199.71 $3.73 2/11/08 $7.69 $1.37 $251.64 $3.55 Price Per Lb. 3/10/08 $8.73 $1.43 $294.94 $3.93 4/7/2008 $9.28 $1.34 $266.27 $3.96 5/6/08 $10.99 $1.17 $248.71 $3.93 Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC , 4Census Bureau, ppreliminary, rrevised 16 Circuits Assembly JUNE 2008 circuitsassembly.com http://gfk.com http://ism.ws http://techforecasters.com http://circuitsassembly.com

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Circuits Assembly - June 2008 Contents Letters Caveat Lector Industry News Market Watch Talking Heads Screen Printing Better Manufacturing China Goes ‘Upmarket’ Out of the Garage Improving Production Line Performance Manufacturing Steps Onto the Enterprise IT Stage Measuring and Controlling Wave Height and Dwell Time Wave Soldering Tech Tips Test and Inspection Process Doctor Pb-Free Lessons Learned Getting Lean Eastern Advances Semicon West Product Preview Product Spotlight Ad Index Assembly Insider Technical Abstracts

Circuits Assembly - June 2008

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