Market Watch
EDITED BY CHELSEY DRYSDALE
DRAM Sales to Decline 38% in 2019
SCOTTSDALE, AZ Despite a 38% sales decline expected this year, the DRAM market is forecast to remain the largest of all IC product categories again in 2019, with sales of $62 billion, says IC Insights.

The DRAM market will account for 17% of total IC sales this year, according to the firm. By comparison, DRAM sales accounted for 23.6% of the total IC market in 2018.

The NAND flash market is forecast to slip from second to third position in the ranking, with total sales falling 32% to $40.6 billion in 2019. Taken together, the DRAM and NAND flash memory categories are forecast to account for 29% of the total $357.7 billion IC market this year, compared to 38% of the total IC market in 2018.

Tough Defense
Trends in the electronics equipment market (shipments only).
 
%CHANGE
 
APR.
MAY
JUNE
YTD%
Computers and electronics products
1.4
0.4
-0.7
5.3
Computers
0.4
-4.5
-6.1
-16.5
Storage devices
16.1
-5.6
-3.1
23.4
Other peripheral equipment
2.8
1.8
2.3
8.2
Nondefense communications equipment
1.3
-0.3
1.1
11.7
Defense communications equipment
-18.4
8.0
12.4
7.6
A/V equipment
5.8
7.7
-0.3
39.0
Components1
-1.4
0.7
2.3
2.5
Nondefense search and navigation equipment
0.9
-0.9
-1.7
3.9
Defense search and navigation equipment
2.2
-3.0
-1.6
3.1
Medical, measurement and control
2.2
-0.1
-2.3
2.5
rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted. Source: U.S. Department of Commerce Census Bureau, Aug. 2, 2019
Hot Takes
  • Worldwide sales of smartphones to end users will total 1.5 billion units in 2019, down 2.5%. (Gartner)
  • The Brazilian electric-electronics industry has cut its 2019 production forecast to 2%, from 7% in the previous estimate. (Abinee)
  • In 2018, worldwide contract manufacturing services market revenue increased 15%, resulting in combined EMS and ODM revenue of nearly $542 billion. (NVR)
Key Components
Book-to-bills of various components/equipment.
 
FEB.
MAR.
APR.
MAY
JUNE
Semiconductor equipment1
-22.7%
-24.9%
-28.5%
-23.6%r
-19%p
Semiconductors2
-10.6%
-13%
-13.7%
-14.8%r
-16.8%r
PCBs3 (North America)
1.06
1.00
1.02
0.99
1.00
Computers/electronic products4
5.42
5.41
5.35
5.39r
5.44p
Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, ppreliminary, rrevised
Metals Index
LME Tin
LME Copper
LME Lead
COMEX Silver
  • The worldwide tablet market declined 5% year-over-year during the second quarter as global shipments fell to 32.2 million units. (IDC)
  • The wearables market will reach $50 billion 2019, more than double since 2014. (IDTechEx)
  • Taiwanese PCB fabricators reported rigid exports grew 6.1% and flex exports fell 4.06% year-over-year in July. (TPCA)
  • Worldwide semiconductor revenue is expected to decline 9.6% to $429 billion in 2019. (Gartner)
US Manufacturing Indices
 
MAR.
APR.
MAY
JUNE
JULY
PMI
55.3
52.8
52.1
51.7
51.2
New orders
57.4
51.7
52.7
50.0
50.8
Production
55.8
52.3
51.3
54.1
50.8
Inventories
51.8
52.9
50.9
49.1
49.5
Customer inventories
42.7
42.6
43.7
44.6
45.7
Backlogs
50.4
53.9
47.2
47.2
43.1
Sources: Institute for Supply Management, Aug. 1, 2019