Market Watch
EDITED by CHELSEY DRYSDALE
Hot Takes
  • Semiconductor sales are finishing 2021 up more than 20% at $550 billion after growing 10.8% to $464 billion in 2020. (SEMI)
  • The electronic component sales sentiment index for November was down 8.3 points sequentially to 111, and is expected to fall below 100 in December for the first time in 18 months. An index below 100 suggests a contracting market. (ECIA)
  • More Wi-Fi 6 devices will ship in 2022 than 5G devices, to the tune of at least 2.5 billion Wi-Fi 6 devices versus roughly 1.5 billion 5G devices. (Deloitte)
  • Global AR/VR device shipments in 2022 will reach 12.02 million units, up 26% year-over-year, with Oculus and Microsoft the leaders in the consumer and commercial markets, respectively. (TrendForce)
  • Inventory-to-sales for new vehicles in the US is 0.389, which means the auto sector can only cover 12 days of sales with current inventory levels. (IPC)
  • Recruiting workers remains difficult, with 57% of companies reporting it has gotten worse in the last month. Seventy-two percent of North American firms report ease of recruiting workers is declining, while 37% of firms in APAC and 43% of those operating globally report the same. (IPC)
  • Some 58% of electronics manufacturers report orders are expanding, while 40% report declining profit margins, and 19% report improving margins. (IPC)
  • Ninety-eight percent of North American manufacturers indicate rising material costs compared to 90% in Europe, 88% in APAC, and 78% among global manufacturers. (IPC)
  • Global shipments of traditional PCs are forecast to reach 344.7 million units in 2021, up 14%. (IDC)
  • The gaming console market will generate $81 billion in 2022, up 10% from 2021. (Deloitte)
  • Global shipments for wearables grew 9.9% during the third quarter, reaching 138.4 million units. (IDC)
  • The 90-day moving average sales at North American EMS companies fell 4.4% year-over-year in October. Shipments fell 0.8% sequentially. October orders rose 40% year-over-year and 22% from the previous month. (IPC)
  • IT spending in India is forecast to total $101.8 billion in 2022, an increase of 7% from 2021. (Gartner)
  • By 2025, 30% of critical infrastructure organizations will experience a security breach that will result in the halting of an operations- or mission-critical cyber-physical system. (Gartner)
  • IC growth will climb 11% in 2022, following a 26% jump in 2021. (IC Insights)
  • The worldwide market for smart home devices grew 10.3% year-over-year in the third quarter of 2021, with more than 221.8 million device shipments. (IDC)
  • The global flexible electronics market is projected to reach $61 billion by 2030, expanding at a CAGR of 8.5% from 2021 to 2030. (Precedence)
Everyone Needs Storage

Trends in the US electronics equipment market (shipments only)

%CHANGE
AUG.
SEP.
OCT.
YTD%
Computers and electronics products
0.3
0.6
-0.2
6.1
Computers
-1.4
-4.3
0.9
2.2
Storage devices
-1.6
0.1
-2.4
31.0
Other peripheral equipment
-1.7
2.6
-0.6
4.8
Nondefense communications equipment
0.7
-0.1
0.2
7.7
Defense communications equipment
-2.5
1.7
2.1
3.9
A/V equipment
-1.8
10.0
-3.3
-1.6
Components1
1.0
3.3
1.0
6.3
Nondefense search and navigation equipment
-0.7
-0.1
0.7
2.7
Defense search and navigation equipment
-0.6
-0.8
0.3
2.6
Medical, measurement and control
1.2
-0.2
-0.1
6.4
rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted.
Source: U.S. Department of Commerce Census Bureau, Nov. 3, 2021
Semi Equipment Sales to Top $100B for 1st Time
TOKYO – Global sales of semiconductor manufacturing equipment by original equipment manufacturers were expected to reach a new high of $103 billion in 2021, surging 44.7% from the previous industry record of $71 billion in 2020, SEMI said in mid December.

The market is expected to further expand to $114 billion by 2022.

“Crossing the $100 billion mark reflects the global semiconductor industry’s concerted and exceptional drive to expand capacity to meet strong demand,” said Ajit Manocha, president and CEO, SEMI. “We expect continuing investments in the digital infrastructure buildout and secular trends across multiple end markets to fuel healthy growth in 2022.”

Wafer fab equipment segment sales are expected to grow 12.4% in 2022 to about $99 billion.

US Manufacturing Indices
JUL.
AUG.
SEP.
OCT.
NOV.
PMI
59.5
59.9
61.1
60.8
61.1
New orders
64.9
66.7
66.7
59.8
61.5
Production
58.4
60.0
59.4
59.3
61.5
Inventories
48.9
54.2
55.6
57.0
56.8
Customer inventories
25.0
30.2
31.7
31.7
25.1
Backlogs
65.0
68.2
64.8
63.6
61.9
Source: Institute for Supply Management, Dec. 1, 2021
Key Components
JUN
JUL.
AUG.
SEP.
OCT.
Semiconductor equipment billings1
59.2%
49.8%
37.8%
35.5%r
41.3%p
Semiconductors2
29.2%
29.6%
30.0%
27.6%r
24%p
PCBs3 (North America)
1.15
1.29
1.48
1.25
1.15
Computers/electronic products4
5.26
5.27
5.26
5.27r
5.28p
Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, ppreliminary, rrevised