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Trends in the US electronics equipment market (shipments only)

%CHANGE
APR.
MAY.
JUN.
YTD%
Computers and electronics products
0.7
-0.6
-0.2
8.0
Computers
0.7
0.4
-2.2
2.4
Storage devices
9.0
5.5
2.6
32.3
Other peripheral equipment
11.6
-9.8
-7.0
8.9
Nondefense communications equipment
-2.3
0.7
0.4
13.5
Defense communications equipment
-3.6
5.1
3.1
3.3
A/V equipment
2.3
6.4
-12.9
-1.6
Components1
-0.6
-1.8
-1.2
7.0
Nondefense search and navigation equipment
4.4
-3.0
1.7
2.0
Defense search and navigation equipment
1.2
-1.6
0.1
2.9
Medical, measurement and control
0.4
-0.6
0.1
8.7
rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted.
Source: U.S. Department of Commerce Census Bureau, Aug. 3, 2021
Hot Takes
  • Chromebook shipments in the second quarter grew 68.6% year-over-year, with volumes reaching 12.3 million units. (IDC)
  • The top four Asian PCB players – China, Taiwan, Japan, and South Korea – accounted for nearly 90% of the global PCB output. (TPCA)
  • The US market for home automation systems is forecast to grow from $9 billion in 2021 to $15.8 billion by 2026, a CAGR of 12% from 2021 to 2026. (Research and Markets)
  • The Germany region PCB industry grew 19% in the first quarter, and the book-to-bill was 1.13. (ZVEI)
  • The tablet segment grew 4.2% year-over-year in the second quarter, with shipments totaling 40.5 million units. (IDC)
  • Smartphones saw overall shipment volumes up 13.2% year-over-year in the second quarter. Vendors shipped a total of 313.2 million devices during the period. (IDC)
  • The 5G in IoT market will approach $272.4 billion globally by 2026, a 17.6% CAGR. (Research and Markets)
  • The worldwide shortage of semiconductors is expected to last for years to come amid increasing risk and supply constraints. Significant shortages will continue through the first quarter of 2023 at a minimum. (Supplyframe)
  • Worldwide shipments of traditional PCs (desktops, notebooks and workstations) reached 83.6 million units during the second quarter, up 13% year-over-year. (IDC)
  • Shipments by North American EMS companies in June were up 14% compared to the same month last year and 31% sequentially. EMS orders for the month rose 61% year-over-year and 44% from the previous month. (IPC)
  • China’s electronics assembly value reached a new high of nearly $346.3 billion in 2020, nearly half of the entire Asia/Pacific market. (New Venture Research)
  • Worldwide revenues for the AI market, including software, hardware and services, is estimated to grow 15% year-over-year in 2021 to $341.8 billion. (IDC)
  • Thirty two of the 33 IC product categories are expected to experience sales growth in 2021, with 29 product categories expected to see double-digit growth. (IC Insights)
  • The global smart wearable devices market will reach $137 billion by 2030, growing 14.7% annually over 2020-2030, with a CAGR of 18.6% for unit shipments. (Research and Markets)
  • Thailand’s manufacturing production index is expected to grow 4 to 5% this year, on higher exports of circuit boards and electronics parts.
  • Economic growth in the US in 2021 is expected to be 6.6%, while 2022 GDP growth is forecast to be 4.5%. (IPC)
  • The overall component average sentiment index, which peaked at 157.7 in March, slowed to 128.7 in July, with concerns related to the US economy and inflationary pressure coupled with parts shortages thought to account for the change. (ECIA)
US Manufacturing Indices
MAR.
APR.
MAY
JUN.
JUL.
PMI
64.7
60.7
61.2
60.6
59.5
New orders
68.0
64.3
67.0
66.0
64.9
Production
68.1
62.5
58.5
60.8
58.9
Inventories
50.8
46.5
50.8
51.1
48.9
Customer inventories
29.9
28.4
28.0
30.8
25.0
Backlogs
67.5
68.2
70.6
64.5
65.0
Source: Institute for Supply Management, Aug. 1, 2021
Key Components
FEB.
MAR.
APR.
MAY
APR.
Semiconductor equipment billings1
32.4%
47.9%
50.3%
53.1%r
58.4%p
Semiconductors2
14.7%
17.8%
21.8%
26.2%r
29.2%p
PCBs3 (North America)
1.29
1.22
1.16
1.11
1.15
Computers/electronic products4
5.20
5.18
5.18
5.24r
5.28p
Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, ppreliminary, rrevised
Report: Shortage of FC-BGA Substrates to Persist through 2025
AUSTIN, TX – Despite capacity increases this year, and additional plans through 2025, demand for FC-BGA substrates is outstripping supply, says TechSearch International. The gap between manufacturing demand and capacity will continue through 2025.

What’s driving the insatiable demand? Larger substrates are required to support high-performance applications, including silicon interposers larger than reticle size and large-area fan-out, says the firm.

With 7, 8, 9, or 10 build-up layers required on each side, more manufacturing capacity is needed to meet package demand for servers, AI, and network switching applications.