Circuits Assembly - November 2008 - (Page 14)

W TCH A Semis Tank Trends in the U.S. electronics equipment market (shipments only). % Change June 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 Julyr 6.0 -2.5 -1.6 -11.2 -3.0 11.1 -3.2 38.9 -1.9 -5.4 -3.6 13.4 Aug* -5.1 -3.3 -9.5 2.1 -7.3 -13.9 -7.7 -17.1 -0.4 0.9 1.8 -1.2 YTD 0.7 -4.2 -4.7 0.9 -0.9 25.0 -14.0 -6.9 -1.9 0.3 3.4 11.3 US Tech Exports Down 3%, Imports Up 3% in 2007 WASHINGTON, DC – US high-tech exports totaled $214 billion in 2007, down 3% compared to 2006, according to AeA (aeanet.org). High tech is the single largest merchandise export sector in the US, or 18% of all US exports, says the association. High-tech imports totaled $333 billion last year, up 3%, resulting in a high-tech trade deficit of $118 billion. The largest overseas markets for US high-tech exports were the European Union ($46.6 billion), Canada ($29.4 billion), Mexico ($26 billion), China ($14.5 billion), Japan ($11.9 billion), and Singapore ($9.2 billion). China was the leading importer of high-tech products to the US ($112.3 billion), followed by Mexico ($51.3 billion), the EU ($33.4 billion), Japan ($29.2 billion), and Malaysia ($25.1 billion). -3.6 -3.3 2.1 -2.2 5.7 2.8 -5.8 -14.3 -0.7 3.7 -8.0 -5.4 *Preliminary. 1Includes semiconductors. Seasonally adjusted. Source: U.S. Department of Commerce Census Bureau, October 2, 2008 September Fall for Production TEMPE, AZ – The manufacturing sector in September dropped to its lowest level since October 2001 – the month following the terrorist attacks on New York City and Washington – the Institute for Supply Management (ism.ws) reported. Computer and Electronic Products was among the six sectors showing growth, however. The overall economy grew for the 83d consecutive month. The Manufacturing PMI was 43.5%, the lowest mark since October 2001’s 40.8%. A reading above 50% indicates expansion in manufacturing. ISM spokesman Norbert J. Ore said, “The PMI indicates a significantly faster rate of decline in manufacturing during September, marking a departure from the 2008 trend toward negligible growth or contraction each month. The Prices Index fell to the lowest level in 21 months. The New Orders index was 38.8%, down 9.5 points sequentially. A reading above 51.6%, over time, is generally consistent with a rise in the Census Bureau’s manufacturing orders figures. May PMI New orders Production Inventories Customer inventories Backlogs 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 Aug. 49.9 48.3 52.1 49.3 54.5 43.5 Sept. 43.5 38.8 40.8 43.4 53.5 35.0 2008 Semi Forecast Downgraded SCOTTSDALE, AZ – IC Insights (icinsights.com) slashed its 2008 semiconductor revenue forecast by $6 billion and revised its yearly growth outlook to 4% this year. In June, the firm predicted 2008 growth of 7% to $250.3 billion. The firm attributed the change to an inventory correction in the logic market and the pricing collapse of the NAND flash market. Overall, IC unit growth is set to increase 8%, with average selling prices down 4% this year. The firm said long-term trends would sustain pricing stability, resulting in a CAGR of 10.6% between 2007 and 2012. Capital spending will decrease 18% this year as a result of leading chipmakers easing up on expansion. For 2009, IC Insights expects semiconductor capital spending to be likely in the 8 to 10% range. PC Market Refuses to Sputter EL SEGUNDO, CA – Second-quarter worldwide PC unit shipments grew 14.5% year-over-year to reach 70.2 million units. No changes occurred sequentially among the top five OEM rankings, says iSuppli Corp. (isuppli.com).Overall PC shipments came in higher than forecast, said iSuppli, whose latest forecast for the 2008 PC market estimates unit growth of 12.5%. Source: Institute for Supply Management, October 1, 2008 Industry Market Snapshot Book-to-bills of various components/equipment. Apr. Semiconductor equipment1 Semiconductors2 Rigid PCBs3 (North America) Flexible PCBs3 (North America) Computers/electronic products4 0.82 3.82% 1.01 0.99 5.16 May 0.79 4.18% 0.95 1.01 5.07 June 0.81 5.91% 0.94 1.02 5.21 July 0.83r 7.11%r 0.94 1.01 5.08r Aug. 0.83p 7.04%p 0.95 0.90 5.25p 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 10/8/07 $6.37 $1.75 $193.85 $3.62 7/7/08 $10.60 $0.71 $262.02 $3.88 8/4/08 $9.84 $0.98 $253.83 $3.67 9/2/08 $8.82 $0.88 $186.68 $3.34 10/6/08 $7.69 $0.76 $160.20 $2.70 Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC , 4Census Bureau, ppreliminary, rrevised 14 Circuits Assembly NOVEMBER 2008 circuitsassembly.com http://www.aeanet.org http://www.icinsights.com http://www.ism.ws http://www.circuitsassembly.com

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

Circuits Assembly - November 2008 Contents Caveat Lector Industry News Market Watch Talking Heads Focus on Business On the Forefront Screen Printing Better Manufacturing RoHS Conversion for Medical Devices Supporting Full-Service Customer Requirements at the Regional EMS Level Speed Thrills Tech Tips Wave Soldering Process Doctor Pb-Free Lessons Learned The Defects Database Getting Lean Materials World Product Spotlight Ad Index Assembly Insider Technical Abstracts

Circuits Assembly - November 2008

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