Printed Circuit Design & Fab - February 2009 - (Page 8)

AROUND thE world Government Spending Fueling China IC Market SAN JOSE – Massive government spending will drive significant growth in China’s semiconductor industry to 2020, according to a just released report. China’s central and local governments have announced investments totaling up to $50 billion toward semiconductor-related projects, says SEMI. China is the world’s leading market for IC consumption, accounting for approximately 28%. Increasingly, this demand will be met with China-produced chips, including leading-edge ICs produced in 300-mm fabs, says SEMI. Meanwhile, equipment and materials suppliers that can leverage current China industry relationships and expand contacts to the next-generation buyers will prosper, the trade group says. In the past five years, China’s government influenced the investment of about $7 billion in new fabs. That figure could triple, as another $20 billion to $25 billion will be invested by local governments throughout the country. Going forward, the central government will invest up to $30 billion in the industry by 2020, according to SEMI. Not only has China become the world’s IC consumer, fab materials spending in China will reach $1.5 billion by 2010, with the highest growth rate among all the key microelectronic markets in the world. In addition, with recent 300-mm fab announcements by SMIC, Hynix, Promos and others, and recent changes in the Taiwan government, greater technology spending is anticipated. copper clad laminate Suppliers Adjusting to Weak Demand TAIPEI, TAIWAN, SEOUL, KOREA ANd MELVILLE, NY – Across the globe, copper clad laminate (CCL) suppliers are making adjustments to production volumes and product pricing to cope with weakening demand. Park Electrochemical announced in December that sales for the third quarter were down 23% and profit fell by over 60%. CCL suppliers in Taiwan and Korea are said to be conducting price wars following demand drop and lower copper prices according to industry sources. The average copper price has dropped from $3.67 per pound in August down to a December low of $1.29 per pound, a 65% drop. Some CCL suppliers have taken losses on copper in inventory that was purchased at the higher third quarter 2008 prices and not sold when demand dropped throughout the fourth quarter. These materi- als are being sold at a loss to clear inventory. Some CCL suppliers in Taiwan and Korea are quoting laminate materials based on current copper prices in an attempt to gain market share and reduce inventory levels. This is a change to the common practice of quoting based on an average cost of copper over the previous two-to-three month period. At the same time many CCL suppliers are cutting production, closing plants and reducing headcount. The decline in CCL prices and weakened demand impacts raw material prices and production as well. As an example, glass fabric manufacturer Taiwan Glass Industrial has stopped production at two more furnaces, TT-6 in Taoyuan, Taiwan and TGF-2 in China. The company had already stopped operations at three other furnaces earlier in December. henderson: 2009 electronics equipment Outlook “Lackluster” LOS ALTOS, CA – The outlook for the global electronics equipment indus- try this year will be bleak, according to the December market forecast from research firm Henderson Ventures. Based on the economic forecast, worldwide electronics equipment production is forecast to fall 2.2% during 2009 following a lackluster gain of 1.2% in 2008. The forecasted recovery in 2010 is projected to be 6.7%. According to Henderson key regional performance predictions for 2009 and 2010 are: United States – 2009 decline of 4.4%, 2010 an increase of 4.3%. Japan – 2009 will see a decline of 5.3%, 2010 an increase of 4.6%. Western Europe – 2009 decline of 6.0%, 2010 an increase of 3.8%. China – 2009 will see an increase of 2.3%, 2010 an increase of 10.1%. If the forecast holds up, every region except China will contract over the next two years compared to 2008’s projected volumes, Henderson said. The decline is a result of contracting demand. Declines in commodity prices in 2009 should allow some equipment manufactures to maintain profitability. According to Henderson, mobile markets will be hard hit with cutbacks forecast for previously planned 3G rollouts that will dampen handset sales. Overall, handsets sales are predicted to decline 3.2% in 2009, then rebound with 10.3% growth in 2010. 2008 handset sales are projected to be up 6.2% for the year. 8 printEd CirCuit dESign & fAB FEBRUARY 2009

Table of Contents Feed for the Digital Edition of Printed Circuit Design & Fab - February 2009

Printed Circuit Design & Fab - February 2009 Contents Our Line Market Watch Around the World Happenings ROI Tip Jar BGA Bulletin Interconnect Strategies Final Finsh Forum Defects Database Embedded Active Components In Multilayer LCP Packages Simulation: The Need for Speed Advanced Registration Systems The DC Design Squeeze Ad Index Do You Really Want a Better Autorouter? Designing With Conductive Materials, Part 1 Off th eShelf Marketplace On the Forefront

Printed Circuit Design & Fab - February 2009

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.