Market Watch
EDITED by CHELSEY DRYSDALE
US Manufacturing Indices
MAY
JUN.
JUL.
AUG.
SEP.
PMI
61.2
60.6
59.5
59.9
61.1
New orders
67.0
66.0
64.9
66.7
66.7
Production
58.5
60.8
58.4
60.0
59.4
Inventories
50.8
51.1
48.9
54.2
55.6
Customer inventories
28.0
30.8
25.0
30.2
31.7
Backlogs
70.6
64.5
65.0
68.2
64.8
Source: Institute for Supply Management, Oct. 1, 2021
Key Components
APR.
MAY
JUN.
JUL.
AUG.
Semiconductor equipment billings1
50.3%
53.1%
59.2%
49.8%r
37.6%p
Semiconductors2
21.8%
26.2%
29.2%
29.6%r
29.7%p
PCBs3 (North America)
1.16
1.11
1.15
1.29
1.48
Computers/electronic products4
5.18
5.24
5.26
5.27r
5.27p
Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, ppreliminary, rrevised
Looking Good

Trends in the US electronics equipment market (shipments only)

%CHANGE
JUN.
JUL.
AUG.
YTD%
Computers and electronics products
-0.1
0.1
0.3
7.0
Computers
-0.4
1.1
0.8
3.1
Storage devices
-0.7
-3.7
-0.5
32.9
Other peripheral equipment
-6.8
5.9
-2.2
5.9
Nondefense communications equipment
0.8
0.1
0.7
10.5
Defense communications equipment
3.9
0.0
-2.5
4.1
A/V equipment
-12.9
10.3
-3.6
-3.1
Components1
0.0
2.0
-0.5
6.0
Nondefense search and navigation equipment
1.7
0.9
-0.8
2.4
Defense search and navigation equipment
0.4
1.1
-0.1
2.8
Medical, measurement and control
-0.3
-0.8
1.3
7.6
rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted.
Source: U.S. Department of Commerce Census Bureau, Oct. 4, 2021
Hot Takes
  • Taiwan’s PCB sales will reach an all-time high this year. (TPCA)
  • Spending on compute and storage infrastructure products for cloud infrastructure, including dedicated and shared environments, decreased 2.4% year-over-year in the second quarter to $16.8 billion. (IDC)
  • Growth in electronic component sales have stabilized in recent months following wide swings in growth expectations over the past 20 months. (ECIA)
  • In 2020, new car sales were down approximately 15% year-over-year, driven by changing consumer needs around travel, job uncertainty, and factory closures during lockdowns. (IDTechEx)
  • By 2022, with current trajectories and assuming no supply constraints, electrification in the automotive sectore will demand an additional $7.4 billion worth of semiconductor material compared to a scenario without electrification. (IDTechEx)
  • Eighty-eight percent of electronics manufacturers that responded to a recent survey have experienced increased lead times, and 31% saw production delays of eight weeks or more, due to the global component shortage. Some 58% of those companies expect the shortages to end in the second half of 2022 at the earliest. (IPC)
  • Total North American EMS orders in August rose 28% year-over-year and 29% sequentially. Shipments for the month were down 3.2% compared to the month in 2020. Sequentially, shipments grew 17%. (IPC)
  • Semiconductor shortages and the delayed packaging and testing of the chips will cause production of global light vehicles to drop by five million this year. (IHS Markit)
  • Prices for rare earth metals have surged and will likely impact the prices of electronics for end-users in the coming months. (Nikkei Asia)
  • The AOI market is projected to reach $1.66 billion by 2026, a CAGR of 21% from 2020 to 2026. (MarketsandMarkets)
  • Global shipments of traditional PCs, inclusive of desktops, notebooks, and workstations, reached 86.7 million units during the third quarter, up 3.9% from the prior year. (IDC)
  • Taiwan’s major notebook ODMs, including Quanta Computer, Wistron, Compal Electronics and Inventec, are not expected to sustain regular peak-season shipment momentum in the second half of the year. (DigiTimes)
  • The global PC market saw annual growth of 5% in the third quarter, with shipments of desktops and notebooks, including workstations, settling at 84.1 million units. (Canalys)
  • Electrically conductive adhesives are predicted to increase their market share with the transition toward integrated and flexible electronics. (IDTechEx)
  • Notebook shipments for 2021 will likely reach 240 million units, a 16.4% annual increase. (TrendForce)
  • Worldwide shipments of gaming PCs and monitors are expected to grow at five-year compound annual rates (CAGRs) of 4.8% and 13.2%, respectively. (IDC)
  • Sales of printed circuit board and multichip module design software rose 16.8% year-over-year to $284.4 million for the period ended Jun. 30. (ESD Alliance)
  • The global 5G technology market is expected to reach $65.5 billion by 2026. (Research & Markets)
  • While DDR5 products gradually enter mass production, NAND Flash stacking technology will advance past 200 layers. (TrendForce)