Electronics Production | September 30, 2008
Part 1: IC Insights lowers 2008 IC market forecast by 3 points
The market researcher IC Insight has lowered their IC market forecast - in their September Update of the McClean Report - by 3 points. Part 1 of 4.
Economic Trends As was mentioned in the August update, 2Q/08 GDP results in the euro-zone (-0.2%) and Japan (-0.6%) were negative. In contrast, U.S. GDP growth in 2Q/08 was revised upward to 3.3% from initial reports of 1.9% growth. However, as the $160 billion U.S. economic stimulus boost continues to wear off in the second half of the year, 3Q08 GDP growth in the U.S. is forecast to slow to only 1.0% with an increasing possibility of negative GDP growth in 4Q/08 and 1Q/09 (which would technically put the U.S. into a recession). As shown above, China’s GDP growth rate slowed only slightly in 2Q/08 from 1Q/08 and was still above 10%. Because of surging inflation over the past couple of years, the Chinese government has been attempting to slow its double-digit GDP growth to less than 10%. However, over the past few months, inflation has moderated in China and with its exports already showing the negative effects of a slowing worldwide economy, the Chinese government, in mid-September, reduced its interest rates for the first time in six years! With a “hard” economic landing for the Chinese economy being loosely defined as 8% or less GDP growth, it appears that the Chinese government, with its reduction of interest rates, is trying to make sure economic growth does not fall too much over the next few quarters. On September 15, the U.S. stock markets had their biggest one-day percentage decline since September 14, 2001, when the U.S. stock markets first opened after the terrorist attacks of September 11, 2001. While the volatility in the U.S. stock markets (the Dow Jones Industrial average declined by over 500 points on September 15, 2008) may be a precursor to a significant slowdown or recession in the U.S. economy, historically, the annual change in the Dow Jones industrial average has not had a very good correlation with worldwide semiconductor market growth. It is interesting to note that even after the big drop in the U.S. stock markets on September 15, 2008, hurricane Ike hitting the Houston, Texas, area hard on September 13 and 14, and OPEC’s decision to cut back oil production, the price per barrel of oil dropped to $95 on September 15. At this level, the price per barrel was down over 35% from its record high of $147 per barrel set in mid-July. Of course, the lower the price per barrel of oil, the better chances for a stronger worldwide economy heading into 2009. Another positive sign is the relatively healthy U.S. ISM PMI (Purchasing Managers Index) figure. This index was described in detail in the Mid-Year Update and is a good gauge of manufacturing strength in the U.S. With “50” being the dividing line between expansion and contraction of this sector, the figures through August indicate a flat manufacturing environment. While the current levels are certainly not exciting, past U.S. recessions have witnessed this number dropping all the way down into the high-30s to low-40s. Thus, at this point, we should probably be thankful for figures near 50. ----- NOTE: As of September 25, 2008, the proposed massive $700 billion U.S. economic bailout package had not been passed. IC Insights assumes that this bill will pass in some form and that a collapse of the U.S. financial system will not occur. Moreover, assuming a large bailout package is enacted, IC Insights believes that it will help set the stage for a noticeable recovery in the U.S. economy in the second half of 2009, which in turn supports our forecast for 8% growth in the worldwide IC market next year. Chart Source: IC Insight
Big Ass Fans adds third Hentec/RPS machine Complementing the purchase of two Hentec Industries/RPS Automation Vector 300 selective soldering machines in 2018, Big Ass Fans (BAF), a high-volume, low- speed (HVLS) airflow manufacturer, has just added a third machine to its factory in Newman Lake, Washington.
CE3 Electronics Inc. taps MIRTEC for 3D AOI technology Canada-based CE3 Electronics has purchased a MIRTEC MV-6 OMNI 3D AOI machine.
Gémosz is still looking to grow – but the pandemic brought new perspectives Winston Churchill famously said, “Never let a good crisis go to waste”. While this was said in a vastly different context than the current crisis of the COVID-19 pandemic, there is still truth to the fact that a crisis not only allows for change – but sometimes forces it.
North American PCB industry sales up 4.3% in April The IPC says that total North American PCB shipments in April 2020 were up 4.3% compared to the same month last year. Compared to the preceding month, April shipments fell 18.2%.
Volkswagen intensifies e-mobility activities in China Volkswagen has initiated the next chapter for its business in China. The automotive giant plans to increase its share in JAC Volkswagen, its joint venture for e-mobility.
GPV Selects Aegis as global smart factory partner Driven originally by accelerating customer expectations for traceability, GPV has selected Aegis’ FactoryLogix Smart digital manufacturing solution, targeting multiple values and benefits.
REDCOM EMS expands certification for medical device manufacturing New York-based REDCOM EMS has secured ISO 13485:2016 certification, complementing the company’s existing ISO 9001:2015 and AS9100D certifications.
Ozark Integrated Circuits nabs U.S. Air Force grant Arkansas-based Ozark Integrated Circuits Inc., located in the Arkansas Research and Technology Park at the University of Arkansas, has received a USD 750,000 award from the U.S. Air Force.
Norwegian EMS adds employees to Polish unit The last couple of months Norautron has welcomed three new colleagues at its office in Sdunska Wola, Poland.
Daimler’s battery production in Kamenz gradually increases production Local battery production is described as an important success factor for Mercedes-Benz AG’s electric offensive and a key element to flexibly and efficiently meet the global demand for electrified vehicles.
Tepcomp invests in new additional production line Finnish EMS provider, Tepcomp Group, has made a significant investment at its production plant in Turku. The new surface mount technology production line will significantly improve the productivity and energy efficiency of the plant.
Valoe is on schedule with both production and expected deliveries Valoe says it will start manufacturing IBC test modules in Juva, Finland in June and cell deliveries from Lithuania to customers is scheduled to start according to plan.
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.
Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000 The impact of COVID-19 on Rolls-Royce and the whole of the aviation industry is unprecedented. RR has already taken action to strengthen the financial resilience of its business and to reduce cash expenditure in 2020. However, this will not be enough.
Data Link Solutions to provide MIDS cabinet terminals to US Navy The U.S. Navy has awarded a USD 3.2 million production contract to Data Link Solutions (DLS), a joint venture between BAE Systems and Collins Aerospace, for new Multifunctional Information Distribution System (MIDS) cabinet terminals.
Incap restarts production in India In a move to contain the COVID-19 pandemic, the government of India instructed all state governments to introduce a lockdown in March. As a consequence, Incap had to close its factory in Karnataka, India on 23 March.
NAND Flash Revenue Undergoes 8.3% QoQ Growth in 1Q20 NAND Flash bit shipment in 1Q20 was relatively on par with 4Q19, says the DRAMeXchange research division of TrendForce. The overall ASP of NAND Flash products also climbed during the period. As a result, the global NAND Flash revenue for the quarter went up by 8.3% QoQ to USD 13.6 billion.
Gorenje reduces the number of layoffs At the end of April, due to a sharp drop in orders and revenues as a result of the COVID-19 pandemic, the Hisense Europe Group launched a redundancy program in four companies in Slovenia.
NA semiconductor equipment industry posts April 2020 billings North America-based manufacturers of semiconductor equipment posted USD 2.26 billion in billings worldwide in April 2020 (three-month average basis), according to SEMI.
AWS Electronics to wear the Incap name Following the acquisition of AWS Electronics Group by Incap Corporation in January 2020, the company's units in the UK and Slovakia will now be trading as Incap Electronics UK Ltd. and Incap Electronics Slovakia s.r.o.Load more news
- Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000
- COVID-19 highlights the gravity of the secondary market for SME
- China falls far short of its "Made-in-China 2025" goal
- Data Link Solutions to provide MIDS cabinet terminals to US Navy
- GlobalFoundries to implement ITAR at US manufacturing facility