Circuits Assembly - September 2008 - (Page 18)

W TCH A Summer Plunge Trends in the U.S. electronics equipment market (shipments only). % Change April 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. Market Edited by Chelsey Drysdale H1 Global Chip Sales Up 5.4% YTD 0.5 -5.7 2.1 5.6 -0.2 23.0 -11.8 -8.6 -1.0 2.1 5.4 8.8 Mayr -2.7 7.7 -6.7 -2.3 4.9 1.9 -6.7 -21.3 -2.2 0.9 9.8 -2.4 June* -3.8 -5.0 1.1 0.5 4.6 -1.7 -5.9 -14.4 0.4 3.2 -6.0 -5.9 5.9 -10.0 -2.4 7.3 -3.9 -8.8 15.5 35.3 1.4 -0.5 -0.7 9.4 SAN JOSE – First-half worldwide sales of semiconductors grew 5.4% year-over-year to $127.5 billion, the Semiconductor Industry Association (sia-online.org) reported. June sales of $21.6 billion were up 8% compared to June 2007, and up 0.5% sequentially. Second-quarter sales of $64.7 billion increased 3% sequentially. SIA said total semiconductor sales in June, excluding memory products, grew 12% year-over-year. Memory dropped 6% year-over-year on sluggish pricing, despite a sharp rise in unit sales. Poll: Top Tier EMS Shift Ahead EL SEGUNDO, CA – Revenue for the global contract electronics manufacturing industry is set to expand to $432.3 billion by 2012, a CAGR of 7.2% from 2007. That’s less than half the 15.5% CAGR from 2002 to 2007, and future consolidation will transform the market by 2013, as competitors rethink how they deliver value to customers, says iSuppli Corp. (isuppli.com). Consolidation will continue during the next five years and may even accelerate, the firm says, adding it may include at least one of the current top tier players. Some 88% of the world’s top EMS/ODM executives believe that by 2013, at least one of these will not exist: Sanmina-SCI (sanmina. com), Celestica (celestica.com) and Elcoteq (elcoteq.com). *Preliminary. 1Includes semiconductors. Seasonally adjusted. Source: U.S. Department of Commerce Census Bureau, August 4, 2008 ISM: Manufacturing Contraction ‘Minor’ TEMPE, AZ – Economic activity in the manufacturing sector was unchanged in July, according to the Institute for Supply Management (ism.ws). For the month, new orders dipped 4.6 points to 45%, while production was up 1.4 points to 52.9%. The PMI was 50%, 20 basis points lower than June. (A reading above 50% indicates the manufacturing economy is generally expanding.) Inventories fell to 45%, down 6.2 points. Customer inventories also dove to 47%, down eight points. Finally, backlogs were at 43%, down 4.5 points. “In this month’s report, manufacturers indicate no change in overall business activity when comparing July to June,” said ISM spokesperson Norbert J. Ore. “This continues a trend biased toward relatively minor contraction established more than 12 months ago. Manufacturing has maintained a reasonable level of activity during a period in which other sectors of the economy have been in recession.” Employment jumped 8.2 points during the month. Mar. PMI New orders Production Inventories Customer inventories Backlogs 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 May 49.6 49.7 51.2 48.0 47.0 46.0 June 50.2 49.6 51.5 51.2 55.0 47.5 July 50.0 45.0 52.9 45.0 47.0 43.0 CEA Raises Consumer Electronics Outlook ARLINGTON, VA – US shipments of consumer electronics will top $173 billion in 2008, according to new data from the Consumer Electronics Association (ce.org). That’s up $2 billion from the trade group’s January estimates. The revised forecast predicts 2008 shipments will grow 7.3%, and another 6% next year, reaching more than $183 billion. The forecast is based on a consensus approach of polling nearly 90 manufacturers and other industry constituents across the CE chain. Leading the way in 2008 are digital displays, with shipment revenues approaching $28 billion, climbing 24% this year. Portable video game systems will also shine in 2008, as consumers continue to seek CE products they can use anywhere, anytime. Smartphones will see revenue growth of 51% this year, comprising 28% of total wireless handset shipments. Source: Institute for Supply Management, August 1, 2008 Industry Market Snapshot Book-to-bills of various components/equipment. Feb. Semiconductor equipment1 Semiconductors2 Rigid PCBs3 (North America) Flexible PCBs3 (North America) Computers/electronic products4 0.92 1.34% 0.99 0.96 4.99 Mar. 0.87 1.82% 1.00 0.99 5.18 Apr. 0.82 3.82% 1.01 0.99 5.16 May 0.79r 4.18%r 0.95 1.01 5.07r June 0.85p 5.91%p 0.94 1.02 5.21p Metals Index Price Per Lb. 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 8/6/07 $7.38 $1.54 $191.65 $3.54 5/6/08 $10.99 $1.17 $248.71 $3.93 6/2/08 $9.60 $0.89 $246.52 $3.62 7/7/08 $10.60 $0.71 $262.02 $3.88 8/4/08 $9.84 $0.98 $253.83 $3.67 Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC , 4Census Bureau, ppreliminary, rrevised 18 Circuits Assembly SEPTEMBER 2008 circuitsassembly.com http://sia-online.org http://isuppli.com http://ism.ws http://celestica.com http://elcoteq.com http://ce.org http://circuitsassembly.com

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

Circuits Assembly - September 2008 Contents Caveat Lector Industry News Market Watch Talking Heads Focus on Business Global Sourcing On the Forefront Screen Printing Better Manufacturing Reflow Soldering with a SnCu Eutectic Pb-Free Alloy Improving OEE in High Mix Facilities Effectively Managing RF Design in Utility Metering Applications Solder Joint Reliability of Different BGAs Reworked Using Low Melting Point Pb-Free Alloys Tech Tips Wave Soldering Pb-Free Lessons Learned Materials World Process Doctor Equipment Advances Product Spotlight Ad Index Assembly Insider Technical Abstracts

Circuits Assembly - September 2008

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