Market Watch
EDITED BY CHELSEY DRYSDALE
2020 Memory Outlook Looking Good
SCOTTSDALE, AZThe 2020 NAND flash market is expected to rise 19%, reversing a 27% decline in 2019. DRAMs are forecast to grow 12%, another strong turnaround from 2019, added IC Insights.

Solid-state computing is expected to drive demand for high-density, high-performance NAND flash this year, even as mobile applications continue to be a significant application. Momentum for 5G connectivity, AI, deep learning, and virtual reality in mobile, data center and cloud-computer servers, automotive, and industrial markets will boost growth in NAND flash and DRAM. Other drivers include increasing electronic content onboard new cars.

Among the IC product categories, 26 are forecast to show growth in 2020, an impressive turnaround from 2019 when only six IC product segments showed sales gains. Five products are expected to enjoy double-digit growth in 2020, an increase from four in 2019 but down from the 17 product categories with double-digit growth in 2018. Seven products are forecast to show flat growth or a market decline in 2020.

Storage Bursts
Trends in the U.S. electronics equipment market (shipments only).
 
%CHANGE
 
Aug.
Sept.
Oct.
YTD%
Computers and electronics products
-0.3
-0.3
.05
3.9
Computers
-2.0
-7.1
1.5
-23.5
Storage devices
-0.3
–11.3
26.7
19.9
Other peripheral equipment
4.6
2.4
-2.3
5.1
Nondefense communications equipment
0.0
0.2
-0.3
10.9
Defense communications equipment
-3.0
-0.4
-8.1
-3.0
A/V equipment
-8.0
-3.9
4.4
28.4
Components1
2.2
-1.5
-0.4
4.2
Nondefense search & navigation equipment
-0.1
-5.7
4.7
2.5
Defense search & navigation equipment
-0.7
1.4
0.1
3.3
Medical, measurement and control
-1.0
0.3
1.3
0.3
rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted. Source: U.S. Department of Commerce Census Bureau, Dec. 5, 2019
Metals Index
January 2020 LME Tin
January 2020  LME Lead
January 2020 LME Copper
January 2020 COMEX Silver
Hot Takes
  • Taiwanese fabricators see an improving order picture in 2020. (TPCA)
  • Global electronic equipment sales increased an estimated 0.3% in the third quarter, based on a combination of company financial reports, individual company projections and estimates. (Custer Consulting)
  • Wearable technology continues to gather pace, building an ecosystem of connected devices and capturing consumer attention to the tune of $108 billion by 2023. (Futuresource Consulting)
  • Worldwide net additions of autonomous vehicles will reach 745,705 units by 2023, up from 137,129 units in 2018. (Gartner)
  • Global AR/VR spending is forecast to be $18.8 billion in 2020, an increase of 79% over 2019. (IDC)
  • Vendor revenue in the worldwide server market declined 6.7% year-over-year to $22 billion during the third quarter, while shipments dropped 3% to 3.1 million units. (IDC)
US MANUFACTURING INDICES
 
JULY
AUG.
SEPT.
OCT.
NOV.
PMI
51.2
49.1
47.8
48.3
48.1
New orders
50.8
47.2
47.3
49.1
47.2
Production
50.8
49.5
47.3
46.2
49.1
Inventories
49.5
49.9
46.9
48.9
45.5
Customer inventories
45.7
44.9
45.5
47.8
45.0
Backlogs
43.1
46.3
45.1
44.1
43.0
Sources: Institute for Supply Management, Dec. 2, 2019
Key Components
 
JUNE
JULY
AUG.
SEPT.
OCT.
Semiconductor equipment billings1
-18.4%
-14.6%
-10.5%
-5.7%r
3.9%p
Semiconductors2
-16.5%
-15.5%
-15.4%
-14.6%r
-13.1%p
PCBs3 (North America)
1.00
1.00
1.02
1.04
1.11
Computers/electronic products4
5.46
5.46
5.48
5.52r
5.48p
Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, ppreliminary, rrevised