Off to a Good Start
CUSTER AND CUSTER
Global electronic equipment sales grew 3.4% in 1Q’17 vs. 1Q’16 based on combined actual and estimated revenues of 213 publicly traded OEMs (Chart 1). Growth by electronic sector is given in Chart 2. We’ll update these estimates next month after the balance of the companies in our survey release their first quarter financials, but things look good so far.
In the U.S. 1Q’17 growth varied by sector of the electronic supply chain (Chart 3). Semiconductor shipments to N. America were especially strong (well in excess of end market demand) and PCB sales are lagging suggesting that there may be some over ordering of ICs.
Regionally China’s very predictable end market seasonality continues. After a recovery in March electronic equipment sales dropped in April. Chart 4 highlights this ongoing, consumer electronics driven seasonal sales pattern.
EMS and ODM revenues peaked in 4Q’16 in support of the year-end holiday buying season. In addition to their normal seasonality the EMS/ODM industry enjoyed organic growth – with sales increasing 8.5% in 1Q’17 vs. 1Q’16 (Chart 5).
ODM sales (Chart 6) mirrored the Asia/Pacific electronic equipment seasonality shown in Chart 4.
2017 is off to a promising start. Electronics demand has improved. The wildcard is our geopolitical situation. Keep watching!
• Smartphone shipments grew 4.3% to 347.4 million units in 1Q’17. –IDC
• Smartphone shipments increased 7% y/y to 1.4 billion units and 4G LTE capable smartphone shipments grew by 13% y/y to 741 million in 2016. –Forward Concepts
• China’s smartphone shipments grew by 9% y/y to 114 million units in 1Q’17. –Canalys
COMPUTERS & PERIPHERALS
• Notebook shipments increased 10.1% y/y to 35.8 million units in 1Q’17; Taiwan-based ODMs shipments expanded 13.5% y/y to 29.3 million units. –Digitimes Research
• Tablet shipments declined 8.5% y/y to 36.2 million units in 1Q’17. –IDC
• Europe, Middle East, and Africa traditional PC market (desktops, notebooks, and workstations) grew 1.6% y/y and totaling 17.4 million units in 1Q’17. –IDC
• Taiwan’s notebook shipments rose 6.3% y/y in 1Q’17, first uptick since 1Q’14. –MIC
• Gaming notebook shipments are expected to grow over 20% y/y in 2017 from more than four million units shipped in 2016. –Digitimes
• Gaming PC sales are expected to rise from 2015’s six million units to 8.7 million units in 2020, and will account for 13% of consumer PC shipments. –Gartner
• Cloud computing IT infrastructure market value grew 9.2% y/y in 2016 to US$32.594 billion. –IDC
• Autonomous driving market will be worth $83 billion by 2025. –Frost & Sullivan
• Connected car market will grow at 36% CAGR from 5.1 million units in 2015 to 37.7 million units by 2022. –Markets and Markets
• In-vehicle infotainment market is expanding at 7.5% CAGR to $52 billion by 2022. –BIS Research
• Primary automotive display systems market value will grow from $11.6 billion in 2017 to nearly $21 billion in 2022. –IHS Markit
• Aerospace robotics market is forecast to grow at a 172% CAGR to USD 5.7 billion by 2022. –Allied Market Research
• North American Robotics market orders increased 32% y/y to an all-time high total of 9,773 robots valued at approximately $516 million and shipments grew 24% y/y to 8,824 robots valued at $494 million. –Robotic Industries Association
• Wearables shipments rose 21% y/y to 22 million units in 1Q’17. –Strategy Analytics
• Europe’s monitored alarm systems are forecast to grow at 4% CAGR from 8.7 million in 2016 to 10.6 million in 2021; North American monitored alarm systems are forecast to grow at 2.9% CAGR from 32.1 million in 2016 to 37.1 million in 2021. –Berg Insight
• World military expenditure increased 0.4% y/y to $1,686 billion in 2016. –Stockholm International Peace Research Institute
EMS, ODM & Related Assembly Activity
Germany accounted for 13.6% of European EMS revenues and 34.7% of those generated in Western Europe. –Reed Electronics Research
Asteelflash added a state of the art facility in La Soukra, Tunisia.
B&R Automation boosted PCB production capacity by 20% with new SMT line.
BB Electronics appointed Johnny Madsen, Senior Sales Manager.
Benchmark Electronics moved corporate HQ from Angleton, Texas to Arizona.
Compal became second CEM for Apple Watch.
• named Susanna Pyykkö, VP, HR and Communications and Kristian Federley, VP, Engineering and Technology.
• Raahe changed focus to ODM business and designing and manufacturing production testing equipment.
• hired Kevin Kettler as CTO of Cloud business unit.
• opened a new design center in Haifa, Israel.
• added 30 assembly lines and 15 production lines for smartphone and tablet components in Hengyang City, China, primarily for producing Amazon smart devices.
• increased its investment in its robot-development subsidiary in Shenzhen, China by CNY10.39 billion (US$1.51 billion).
• subsidiary, Jusda International spent US$14.268 million acquiring a 40% stake in FSK L&S.
IMI acquired Surface Technology International.
Inovar named Eric Shipley, CFO.
Jabil Circuit’s Executive VP and COO, William “Bill” Muir plans to retire December 31, 2017.
KBC Electronics added two additional Jade Mk II selective soldering systems.
Logic PD promoted Ankur Tandon to VP of Manufacturing.
Mack Technologies purchased its 6th selective soldering system.
MC Assembly completed “Incite Man” Lean Enterprise Simulation workshops at its Boston facility.
Nimbletronics added a Scienscope X-Scope 2000 X-ray inspection system.
Norbit EMS opened a sales office in Gothenburg, Sweden.
Outsource Electronics became Season Electronics.
Proto Labs received ISO 9001, ISO 14001, and ISO 27001 certification for its Japanese facility in Zama-shi, Kanagawa.
SAE Circuits Express installed a NTO 2424-LF lead-free hot air solder leveling machine.
Saline Lectronics added a NIKON XT V 160 X-ray system.
Zober Industries added a new SMT line with EKRA E5-36 large board printer, two FUJI AIMEX IIS and a BTU International Pyromax 125A oven.
Motherboard shipments are expected to see more than 10% decline in 2017 from less than 50 million units in 2016. –Digitimes
ASRock and Elitegroup Computer Systems (ECS) are expected to collectively account for 90% of the worldwide motherboard shipments in 2017. –Digitimes
American Standard Circuits acquired Camtech Technologies.
Elmatica installed a second Ucamco Integr8tor workflow machine.
Firan Technology Group elected Mike Andrade, Robert Beutel, Bradley Bourne, Edward Hanna, Raymond Harris and David Masotti as Directors.
Graphic is planning a £3million 3-story extension and new investments in capital equipment in Crediton, UK.
HT Global Circuits purchased Pho-Tronics.
IPC appointed Dave Hernandez, Senior Director of Learning and Professional Development.
Lenthor Engineering purchased Mirtec MV-6 OMNI 3D AOI Series in line component inspection machine.
Newbury Electronics added a LPKF 5120 Laser drilling and milling machine,
Ecoselect 1 selective soldering machine and a Yamaha I-Pulse M20 SMD pick & place machine.
Materials & Process Equipment
Copper foil shortage has resulted in an approximately 2.8 million sheets per month copper-clad laminate global material shortage. –Ventec COO
Metamaterial market is expected to grow at of 63% CAGR be to USD 4.6 billion by 2025. –MarketsandMarkets’
Quantum dots market will grow at a 46% CAGR to over $7 billion by 2022. –Research and Markets
Silver nanowire market revenue is projected to grow at 6.2% CAGR from of $300 million in 2016 to $410 million by 2021. –IndustryARC
Surface treatment chemicals market is anticipated to grow at 7.8% CAGR from $4.8 billion in 2016 to $8.1 billion by 2023. –BIS Research
Vacuum coating equipment market is set to surpass USD 47 billion by 2024. –Global Market Insights
A. Schulman released thermoplastic polyester for circuit board protection layers.
Air Products started up a new plant in Chongqing City, China.
ASM Assembly Systems named Josef Ernst VP, CRM.
ASSCON added an YXLON Y.Cougar X-ray system to its Technology and Demo Center in Königsbrunn, Germany.
ASYS Group bought Super Dry Totech.
Avantor Performance Materials acquired VWR and Puritan Products.
Fuji Machine Manufacturing acquired Tower-Factory (Germany).
Keysight Technologies, Spreadtrum Communications opened an Innovation Center in Shanghai, China.
LANXESS appointed Stephen Forsyth, Chief Integration Officer, responsible for Chemtura integration.
MacDermid Enthone Electronics Solutions hired Jeff Miller (Account Manager), Chona Okayama (Technical Service), Geoff Leeds (Technical Service Engineer) and Doug Gotelli (Account Manager).
MicroCare Europe added a 350 SM facility in Brussels, Belgium.
Nan Ya is building a copper foil plant in Chiayi, Taiwan with annual production capacity of 18,000 tons.
Nano Dimension began shipping
Dragonfly 2020 desktop machine to beta customers.
Panasonic’s Brent Fischthal was elected to Board of Directors of Manufacturing Enterprise Solutions Association International.
• appointed Patrick Crowley, President of Neltec.
• consolidated its Nelco Products’ electronics Business Unit in Fullerton, California into its Neltec, electronics business unit in Tempe, Arizona.
• named Steve Pittari, VP of R&D.
Shengyi Technology became first world-wide manufacturer to obtain UL listing for FR-4 with RTI of 150 Degrees C.
Speedboard Assembly Services expanded its shop floor in Windsor by 3,000 SF to a total of 25,000 SF.
Uyemura USA appointed Richard DePoto, Manager of Business Development, David Liston, Director of Operations and Mark Eonta, National Sales Manager.
Ventec International appointed Kyle Pattie, Account Manager, Eastern USA.
Yaskawa Europe robotics division expanded its Allershausen, Germany complex by 5,000 SM.
• Semiconductor market grew 2% y/y to $352 billion in 2016. –IHS Markit
• Semiconductor sales increased 18.1% y/y to $30.9 billion in March. –SIA/ WSTS
• Top-10 semiconductor suppliers represented 56% of the 1Q’17 worldwide semiconductor market of $99.6 billion. –IC Insights
• MCU revenue will increase 7% y/y from $17.5 billion in 2016 to $18.8 billion in 2017 and to $25.1 billion in 2021. –IC Insights
• Microprocessor and GPU Market is expanding at 2.2% CAGR to 84 billion USD by 2022. –MarketsandMarkets
• MOSFET market to grow at 3.4% CAGR from revenue neared US$6.2 billion in 2016. –Yole Développement
• System on a Chip market revenue will grow at ~13% CAGR to USD 81 billion from 2016 to 2022 –Market Research Future
• Wafer supply will likely fall short of demand by 10-20% at the end of 2018 and the shortage could persist through 2020. –GlobalWafers
• RFID market is projected to grow at nearly 9% CAGR to USD 15.8 billion by 2021. –Technavio
• Semiconductor wafer-level manufacturing equipment revenue increased 11.3% y/y to $37.4 billion in 2016; top 10 vendors accounted for 79% of the market. –Gartner
• North America-based manufacturers of semiconductor equipment billings increased 69% y/y to $2.03 billion worldwide in March 2017. –SEMI
• Discrete diode market will grow at 4.6% CAGR from 2017 through 2021. –Research and Markets
• Integrated passive devices market will grow at 9% CAGR to USD 1370 million by 2022. –Research and Markets
• Passive optical components market is expected to grow at 17.6% CAGR to $45,600 million by 2022. –Allied Market Research
• Biometric sensor product shipments are expected to achieve 31% CAGR from 2017-2020. –Digitimes Research
• Image sensors market shipments will grow at a 12.3% CAGR from 1.6 million units in 2014 with an overall value of $172 million to close to 4.1 million units in 2022 with a value of $294 million. –Smithers Apex
• Motion sensor market revenues will grow at 11% CAGR to USD 7 billion by 2022. –MarketersMedia
• Smart sensor market is poised to surpass USD 80 billion by 2024. –Global Market Insights
DISPLAYS, PANELS, MONITORS
• LCD TVs shipments dropped 3% y/y to 50 million LCD TVs in 1Q’17. –Sigmaintell
• LCD TV panel shipments increased 0.4% to 60 million units in 1Q’17. –WitsView
• Taiwan-based makers’ LCD TV shipments fell 8.4% y/y to 6.7 million units in 1Q’17, the lowest quarterly level since 1Q’10 LCD TV shipments lowest in 7 years. –Digitimes Research
• Taiwan’s LCD monitor shipments dropped 6.2% y/y to below 20 million units in 1Q’17. –Digitimes Research
Memory and Storage
• DDR4 will become the dominant DRAM generation in 2017 with 58% market share versus 39% for DDR3. –IC Insights
• Server DRAM memory ASPs are expected to rise over 10% in 2Q’17 and will continue their growth in 3Q’17 due to persistent tightness in supply –DRAMeXchange
• Taiwan’s memory chips exports increased 39% y/y to US$2.4 billion in 1Q’17. –MOEA
PRINTED, FLEXIBLE AND ORGANIC ELECTRONICS
• Printed electronics market value is growing at 22% CAGR from USD 3 billion in 2015 to USD 10.3 billion in 2021. –Zion Market Research
• Wireless power and charging market is expected to grow to 325 million units in 2017 after expanding approximately 40% in 2016. –IHS Markit
• Electrostatic discharge packaging market is projected to grow at more than 8% CAGR to USD 5.4 billion by 2021. –Technavio
• Embedded technology market will grow at 5.5% CAGR from $169 billion in 2016 and nearly $221 billion in 2021. –Research and Markets
• PCB connector market revenue will grow at 3% CAGR to more than USD 22 billion by 2021. –Absolute Reports