Market Watch
EDITED by CHELSEY DRYSDALE
Covid Rebound

Trends in the U.S. electronics equipment market (shipments only)

%CHANGE
MAR.
APR.
MAY.
YTD%
Computers and electronics products
0.9
0.7
-0.3
8.3
Computers
-3.1
0.7
0.8
4.5
Storage devices
0.9
9.0
3.6
29.2
Other peripheral equipment
-5.1
11.6
-8.3
14.1
Nondefense communications equipment
0.9
-2.3
0.7
14.1
Defense communications equipment
-1.3
-3.6
4.6
3.4
A/V equipment
-1.8
2.3
6.4
1.3
Components1
0.7
-0.6
-0.8
7.8
Nondefense search and navigation equipment
-1.3
4.4
-2.6
1.7
Defense search and navigation equipment
0.2
1.2
-1.4
2.9
Medical, measurement and control
1.2
0.4
-0.3
9.1
rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted.
Source: U.S. Department of Commerce Census Bureau, July 2, 2021
Hot Takes
  • Revenue of listed Taiwanese PCB companies grew at an annual rate of 16.8% year-over-year in May, up 1.1% sequentially. Total revenue of listed PCB material-related companies grew over 70% in the same month. (TPCA)
  • Shipments of tablets are expected to grow 1.8% in 2021. Global tablet volume is expected to reach 166.5 million units over the course of this year. (IDC)
  • Semiconductor manufacturers worldwide will have started construction on 19 new high-volume fabs by the end of this year and break ground on another 10 in 2022 to meet accelerating demand for chips in communications, computing, healthcare, online services and automotive. (SEMI)
  • The worldwide IC market is forecast to grow 24% in 2021, exceeding $500 billion for the first time. (IC Insights)
  • Global smartphone sales to end-users grew 26% in the first quarter of 2021. (Gartner)
  • Worldwide contract manufacturing revenue increased 7.1% in 2020. (New Venture Research)
  • Total North American EMS orders in May rose 10.5% year-over-year and decreased 19% sequentially. EMS shipments for the month were up 1.9% year-over-year and down 3.9% sequentially. (IPC)
  • Consumer electronics revenue will cross $1.5 trillion by 2027. (Global Market Insights)
  • The global government Internet of Things endpoint electronics and communications market will total $21.3 billion in 2022. (Gartner)
  • The head-mounted display market is expected to grow to $36.5 billion by 2026, a CAGR of 46% between 2021 and 2026. (Research and Markets)
  • Server ODMs saw shipments fall short of customer orders by 10 to 30% in the first half of 2021, with the shipment shortfall likely to widen in the second half of the year because of chip shortages. (DigiTimes)
  • Worldwide shipments of traditional PCs, including desktops, notebooks and workstations, reached 83.6 million units in the June quarter, up 13.2% from the second quarter 2020. (IDC)
US MANUFACTURING INDICES
FEB.
MAR.
APR.
MAY.
JUN.
PMI
60.8
64.7
60.7
61.2
60.6
New orders
64.8
68.0
64.3
67.0
66.0
Production
63.2
68.1
62.5
58.5
60.8
Inventories
49.7
50.8
46.5
50.8
51.1
Customer inventories
32.5
29.9
28.4
28.0
30.8
Backlogs
64.0
67.5
68.2
70.6
64.5
Source: Institute for Supply Management, July 1, 2021
Key Components
JAN.
FEB.
MAR.
APR.
MAY
Semiconductor equipment billings1
29.8%
32.4%
47.9%
50.3%r
53.1%p
Semiconductors2
13.2%
14.7%
17.8%
21.8%r
26.2%p
PCBs3 (North America)
1.14
1.29
1.22
1.16
1.11
Computers/electronic products4
5.12
5.20
5.18
5.18r
5.22p
Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, ppreliminary, rrevised