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Weekly Global Update for August 13, 2014

08.13.2014 // Walt D. Custer // Industry Conditions

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Business Outlook: Global Electronics Industry Supply Chain

Updated 2Q’14 Electronics Industry Growth by Sector

Charts from Custer’s “Business Outlook” webinar sponsored by SiliconExpert Technologies, are attached.

With more companies now having reported their calendar 2Q’14 financials we have updated our charts:

  • Global electronic sales grew 4.4% in 2Q’14 versus 2Q’13 (Charts1 & 2). Note this is still an estimate since some large OEMs including HP, Applied Materials, Agilent and Medtronic have not yet reported.
  • Growth by sector for the global electronic supply chain is given in Chart 3. Note that Charts 1-3 are updated from the Business Outlook chart set referenced above from Walt’s Thursday 8/7/14 webinar.
  • A group of 9 large EMS companies reported a 0.7% sales decline in the second quarter (Chart 4). The large Taiwan-listed ODMs also had weak 2Q’14 growth (Chart 5).
  • SEMI equipment growth, although still up over 18% in 2Q’14 versus 2Q’13, appears to have peaked in the current semiconductor business cycle (Chart 6).
  • Chart 7, 8 and 9 show historical sales for groups of PCB process equipment, material and CCL laminate suppliers. Q’2 growth was modest.

Source: Company financials with analysis by Custer Consulting Group

Top PCB Companies Ranked by 2013 Sales

Thanks to our friend and colleague Dr. Hayao Nakahara, Chart 10 lists the top 25 global PCB makers in 2013. They are color-coded by region of ownership.

A much longer list with commentary will be published in the September issue of PC Design & Fabrication magazine.

Source: N.T. Information Ltd

Updated June U.S. Electronics Data

The U.S. “Factory Orders” report for June was just released by the Department of Commerce. Here are a few highlights:

  • Electronic equipment orders rose further above shipments (Chart 11).
  • Military (Chart 12) and electromedical, instrument and control (Chart 13) orders increased and computer equipment orders remained above shipments (Chart 14).
  • Passive component orders and shipments improved (Chart 15).

Chart 16 summarizes the annualized (12/12) and 3-month (3/12) growth of the domestic electronic supply chain in June.

Source: www.census.gov/manufacturing/m3/

Hon Hai July Sales Fall to 17-month low

Hon Hai Precision Industry (Foxconn’s) July sales fell to a 17-month low. Market analysts blamed the decline on product transitions.

Hon Hai reported NT$260 billion in consolidated sales in July, down 17.9% from June 2014 and down 13.3% from July 2013.

Reportedly Apple reduced its July purchases from Hon Hai in anticipation of coming new product introductions.

Industry Sources

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Statements of fact and or opinions expressed in MarketEYE by its contributors are the responsibility of the authors alone and do not imply an opinion of the officers or the representatives of TTI, Inc.

Featured Contributor:
Walt D. Custer

Walt Custer

Walt Custer is an industry analyst focused on the global electronics industry. Prior to forming Custer Consulting Group he was Vice President of Marketing and Sales for Morton Electronic Materials, a global supplier of specialty chemicals and process equipment for the PCB industry.

Custer has been a member of the IPC trade organization since 1975 where he received both the President's and the Raymond E. Pritchard Hall of Fame Awards. He is currently a member of the IPC Executive Market & Technology Steering Committee. Custer is also a Director of the EIPC European PCB trade organization.

He authors regular “Market Outlook” columns for Global SMT & Packaging magazine, the Journal of the HKPCA and the TTI MarketEYE website.

Custer Consulting Group

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