Market Watch
EDITED by CHELSEY DRYSDALE
Hot Takes
  • Smartphone shipments are expected to grow 7.4% in 2021, reaching 1.37 billion units, followed by 3.4% growth in 2022 and 2023, respectively. (IDC)
  • The US PC market grew 17% year-over-year in the second quarter, with total shipments of desktops, notebooks, tablets and workstations reaching 37 million units. (Canalys)
  • Worldwide PC shipments are expected to grow 14% to 347 million units in 2021. Tablet shipments are expected to grow 3.4%. (IDC)
  • DRAM suppliers’ second quarter revenue reached $24.1 billion, up 26% sequentially. (TrendForce)
  • Global wearables shipments grew 32% year-over-year as volumes reached 114.2 million during the second quarter. (IDC)
  • Total North American EMS shipments in July were down 2.9% year-over-year. Sequentially, July shipments fell 26%. EMS orders rose 1.7% compared to July 2020 but dropped 31% compared to June 2021. (IPC)
  • Both Intel and Infineon have cautioned that the semiconductor shortage may persist throughout all of 2022.
  • The global semiconductor packaging market is expected to reach $60.4 billion by 2030, a CAGR of 9.1% from 2021 to 2030. (Allied Market Research)
  • Worldwide server market revenue declined 2.5% year-over-year to $23.6 billion during the second quarter on a 0.1% increase in shipments. (IDC)
  • The Confederation of Indian Industry (CII), Coimbatore, says Tamil Nadu, India, is looking at $40 billion worth of electronics manufacturing in the state by 2025, and Coimbatore should capture at least 30% of it. (CII)
  • The cooling of electronics components sales is expected to moderate in September and through the end of 2021. (ECIA)
  • Electronic skin patch revenue will top $30 billion by 2031. (IDTechEx)
Key Components
MAR.
APR.
MAY
JUN.
JUL.
Semiconductor equipment billings1
47.9%
50.3%
53.1%
59.2%r
49.8%p
Semiconductors2
17.8%
21.8%
26.2%
29.2%r
29%p
PCBs3 (North America)
1.22
1.16
1.11
1.15
1.29
Computers/electronic products4
5.18
5.18
5.29
5.26r
5.25p
Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, ppreliminary, rrevised
Taiwan Sees Major H1 Uptick in PCB Sales
Despite concerns over national sovereignty, the business relationship between Taiwan and China remains robust. Taiwan-based PCB fabricators saw year-to-date revenues rise 19% year-over-year through June to NT$356 billion ($12.9 billion), its highest collective first-half showing, and expect growth to continue throughout the year, reaching an estimated annual output of NT$773.8 billion ($27.9 billion). That’s according to the TPCA, which noted some plants in Taiwan are at 100% of production capacity, and seeking new factories on the island.

TPCA said the growth has been broad-based, with higher demand for IC substrates, multilayer boards, single- and double-sided boards, HDI and flex circuits. End-markets including tablets, PCs, automotive, servers and Netcom products are driving growth.

The only segment to slow, TPCA said, is rigid-flex, mainly because of end-product changes such as Apple’s wireless Bluetooth headset, which now features a SiP design, and its battery module board, which is now all flex.

Looking Good

Trends in the US electronics equipment market (shipments only)

%CHANGE
MAY
JUN.
JUL.
YTD%
Computers and electronics products
-0.6
-0.1
0.4
7.5
Computers
0.4
-0.4
0.7
3.4
Storage devices
5.5
-0.7
-1.8
32.7
Other peripheral equipment
-9.8
-6.8
6.5
8.0
Nondefense communications equipment
0.7
0.8
0.2
11.7
Defense communications equipment
5.1
3.9
0.0
3.9
A/V equipment
6.4
-12.9
10.3
-2.0
Components1
-1.8
0.0
2.0
6.5
Nondefense search and navigation equipment
-3.0
1.7
0.8
2.0
Defense search and navigation equipment
-1.6
0.4
1.2
2.8
Medical, measurement and control
-0.6
-0.3
-0.5
8.2
rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted.
Source: U.S. Department of Commerce Census Bureau, Sept. 2, 2021
US Manufacturing Indices
APR.
MAY
JUN.
JUL.
AUG.
PMI
60.7
61.2
60.6
59.5
59.9
New orders
64.3
67.0
66.0
64.9
66.7
Production
62.5
58.5
60.8
58.4
60.0
Inventories
46.5
50.8
51.1
48.9
54.2
Customer inventories
28.4
28.0
30.8
25.0
30.2
Backlogs
68.2
70.6
64.5
65.0
68.2
Source: Institute for Supply Management, Sept. 1, 2021