Printed Circuit Design & Fab - November 2007 - (Page 6)

MARKET WATCH Navigation Becoming Motorist ‘Must’ JUNE % CHANGE JULYr AUG.* 2.6 -27.3 7.2 4.2 1.0 13.4 -1.4 25.4 -1.9 2.9 2.3 1.7 0.2 18.6 1.3 -1.7 1.9 1.0 0.1 -6.6 0.4 -7.2 3.0 0.0 YTD -0.1 -10.1 -12.7 2.8 -2.0 3.7 3.5 -3.4 5.5 20.4 4.8 3.1 EL SEGUNDO, CA – Since the start of 2006, awareness of GPSbased navigation technology has exploded into the public consciousness, moving rapidly from the “nice-to-have” to the “must-have” category, says iSuppli Corp. (isuppli.com). Personal navigation devices (PNDs) are developing rapidly as vendors cut prices to maintain share. Despite falling ASPs, PND revenue is expected to increase fourfold between 2006 and 2013, reaching $16.5 billion. iSuppli estimates 40 companies now are offering GPS navigation capabilities on a range of products, from PNDs and embedded systems, to smart phones. The firm expects shipments of GPS-enabled mobile handsets to reach 250 million units by 2010, up from more than 70 million units in 2006. COMPUTERS REBOUND FOR STRONG YEAR-END FINISH Trends in the U.S. electronics equipment market (shipments only). Computers/electronics products Computers Storage devices Other peripheral equipment Nondefense communications equipment -4.1 -10.7 -7.6 0.6 0.8 Defense communications equipment -15.6 A/V equipment Semiconductors Components1 Nondefense search and navigation equipment Defense search and navigation equipment Medical, measurement and control rRevised. 1Includes 0.2 -14.9 1.2 0.8 -2.4 1.1 SE Asia Outsourcing to Grow SINGAPORE – EMS revenues in Southeast Asia topped $20.7 *Preliminary. semiconductors. Seasonally adjusted. Source: U.S. Department of Commerce Census Bureau, XXXXX 2007 Manufacturing Growth Slowed in September TEMPE, AZ – Economic activity in the manufacturing sector expanded in September for the eighth consecutive month, while the overall economy grew for the 71st consecutive month, reports ISM (ism.ws). Manufacturing grew at a slower rate in September, as the PMI registered 52%, down 0.9 points from August, says ISM. New orders registered 53.4%, down 1.9 points sequentially. Production dipped to 54.6%, 1.5 points lower. Manufacturers’ inventories registered 41.6%, a decrease of 3.8 points. Customers’ inventories were 50%, up 1 point. Backlogs reached 51%, 0.5 points higher sequentially, the firm reports. ISM spokesman Norbert J. Ore said, “The trend is toward slower growth in manufacturing, as the rate of growth in both new orders and production slowed. The sector is apparently in excellent shape with regard to inventories, as the inventories index fell to 41.6%, indicating significant inventory liquidation. Overall, September looks like a good month for manufacturing.” MAY PMI New orders Production Inventories Customer inventories Backlogs 55.0 59.6 58.3 46.1 48.0 52.5 JUNE 56.0 60.3 62.9 45.3 47.0 53.5 JULY 53.8 57.5 55.6 48.5 51.0 52.0 AUG. 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 billion in 2006 and are on track to reach $38.4 billion in 2013, as MNCs migrate from the U.S. and Europe, Frost & Sullivan (frost.com) reports. EMS providers generally prefer making investments in larger markets such as China and locating near OEM customers. However, with long-term growth expected, they are likely to set up or expand their existing bases in Southeast Asia to minimize the risks of concentrating on just a few geographical areas, says the firm. Medium-volume products such as medical equipment and automotive electronics are seen as the better fit for Southeast Asia, since EMS providers will have sufficient volume to cover fixed costs. These products contain a high degree of IP specific to OEMs, thereby presenting a significant entry barrier for ODMs and any new participants. Hence, specializing in low-volume products can prove advantageous to EMS providers in the long term, Frost reports. 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 7/9/07 $6.44 $1.34 $188.73 $3.65 PRICE PER LB. 8/6/07 $7.38 $1.54 $191.65 $3.54 9/10/07 $6.37 $1.37 $186.09 $3.34 10/9/07 $7.12 $1.75 $193.85 $3.62 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 0.98 MAY JUNE JULY AUG. 0.98 0.91 0.83r 1.91%r 1.02 1.04 5.08r 0.83p 2.74%p 1.06 1.07 5.01p 2.27% 2.5% 1.87% 1.00 1.28 4.83 0.98 1.32 4.76 1.01 1.12 4.83 Source: Institute for Supply Management, Oct. 1, 2007 Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, pPreliminary, rRevised 6 PRINTED CIRCUIT DESIGN & FAB NOVEMBER 2007 http://isuppli.com http://frost.com http://ism.ws

Table of Contents Feed for the Digital Edition of Printed Circuit Design & Fab - November 2007

Printed Circuit Design & Fab - November 2007 Contents Our Line Market Watch Around the World Happenings ROI Packaging HDI Design and Fab Plating Design Tools Metric Design Productronica Product Preview Marketplace Ad Index The Signal Doctor

Printed Circuit Design & Fab - November 2007

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.