CUSTER AND CUSTER
BY WALT CUSTER AND JONATHAN CUSTER
Business conditions have continued to improve throughout 2017. The global Purchasing Managers Index (Chart 1) was at a 44-month high in September, forecasting continued world manufacturing growth ahead.
Electronic equipment sales have accelerated throughout the year. Based upon preliminary data, third quarter global electronic equipment sales rose 6.7% compared to the same quarter last year (Chart 2).
Semiconductor sales have been especially strong, up almost 20% globally in 2017 versus 2016 – as they are driven by both better end market demand and memory chip shortages and resulting price increases (Chart 3). SEMI capital equipment (Chart 4) has benefited from the strong chip demand. It was especially strong by S Korean memory chip producers.
As 2017 moved into the autumn “busy season”, the Taiwan-based ODM companies are enjoying their normal seasonal upturn. September 2017 ODM sales were up 3.3% vs. September 2016 and up 30% sequentially from August 2017(Chart 5).
The 2016 global printed circuit market was recently estimated by IPC to be US$ 58.2 billion with over 50% of the production being in China (Chart 6). This autumn China’s sales have again risen seasonally (Chart 7). For this full year world printed circuit sales will likely increase 2-3%.
2017 has been positive – for the electronic equipment end markets, EMS and ODM companies, active & passive components, process equipment and materials!
y/y to 31.3 million units. –Digitimes Research
• Tablet shipments dropped 17.9% y/y to 33.4 million units in 2Q17. –Digitimes Research
• Asia Pacific hardcopy peripherals market grew 4.9% y/y to 7.8 million units in 2Q17. –IDC
INTERNET OF THINGS
• IoT connected devices are predicted to reach 7 billion by 2022. –ON World
• IoT in manufacturing market is forecast to reach $150 billion by 2024. –Global Market Insights
• China’s IoT market value is estimated to grow from CNY900 billion in 2016 to more than CNY1.5 trillion (US$228 billion) by 2020. –CEIS
MEDICAL
• Medical electronics market is poised to surpass $148 billion by 2024. –Global Market Insights
NETWORK EQUIPMENT
• Consumer and enterprise wireless local area network market segments grew 2.5% y/y to $2.37 billion in 2Q17. –IDC
• Server shipments expanded 2.4% y/y to 2.8 million units in 2Q17, while revenue grew 2.8% y/y to $13.9 billion. –Gartner
ROBOTS/AUTOMATION
• Cognitive & artificial intelligence systems spending will grow at a 50% CAGR from $12 billion in 2017 to $58 billion in 2021. –IDC
• Collaborative robots market will grow at 57% CAGR from $176 million in 2016 to $4,300 million in 2023, led by automotive industry. –ReportsnReports
• Human machine interface market is forecast to grow at 9% CAGR to $7.4 billion by 2022. –Research and Markets
• Industrial control and factory automation market is expected to grow at 7.4% CAGR from $155 billion in 2017 to $240 billion by 2023. –RnR Market Research
• Industrial robots sales for the electrical and electronics industry increased 41% y/y to 91,300 units in 2016. –International Federation of Robotics
• Smart glass market is expected to grow at 17% CAGR from $3.3 billion by 2017 to $8.4 billion by 2023. –MarketsandMarkets
WEARABLES
• Combined augmented reality and virtual reality headset market will grow at 56% CAGR from 13.7 million units in 2017 to 81 million units by 2021. –IDC
• Wearable device shipments will increase 16.6% y/y to total of 122 million devices in 2017. –IDC
• Wearable smartwatches are forecast to reach $17.4 billion in 2021. –Gartner
EMS, ODM & Related Assembly Activity
Global contract manufacturing industry will grow at a 5.3% CAGR from $425 billion in 2016 to $551 billion in 2021 and total electronics assembly value will grow from $1.4 trillion in 2016 and to approximately $1.7 trillion in 2021. –Research and Markets
European EMS industry top five companies by global revenue in 2016 were Scanfil, Kitron, HANZA, GPV and NOTE. –Reed Electronics Research
Testing, Inspection and Certification market is expected to grow at 5% CAGR from $184 billion in 2017 to $248 billion by 2023. –MarketsandMarkets
ACE electronics N.V., (Diest, Belgium) added a Viscom S3088 ultra 3D AOI system.
AIMTRON installed an SJ Inno Tech HP520 SPI screen printer.
AMI achieved ISO 13485:2003 certification for medical devices.
APS Energia spent 1.2 million zloty to add a modern SMD assembly line at its engineering and production center near
Warsaw, Poland.
Arian Technologies set up a standalone company to carry out custom design work to complement Arian EMS’s assembly business in Ashington, UK.
ASTEELFLASH promoted Mathieu Kury to Business Development Manager.
AZP purchased two BX Benchtop AOI systems from Nordson YESTECH.
Benchmark Electronics moved its HQ to 52-acre, Class A office park in Tempe, Arizona.
Cirtronics installed a Nordson DAGE Quadra 5 flexible X-ray inspection machine in New Hampshire.
Enics invested 5 million Euros to expand its plant in Elva, Estonia.
EPE added a Nordson ASYMTEK S-920 Spectrum fluid dispensing system in Manchester, New Hampshire.
Excel Electronics received IPC J-STD-001 and IPC-A-610 Qualified Manufac-turers Listing Class 2 certifications.
Fabrinet named Seamus Grady, CEO and Tom Mitchell, Executive Chairman.
Foxconn/ Hon Hai
• is building its $10 billion, 20 million SF manufacturing campus in Mount Pleasant, Wisconsin.
• is planning to invest over CNY37.5 billion to build a new smartphone plant in China’s Nanjing, Jiangsu Province.
• set up three regional training centers in India’s East Godavari district.
• plans allocated $5.74 billion to establish a smartphone and LCD TV manufacturing facility in Nanjing, China, which will include R&D, chip making facilities and a logistics center.
Gospell Digital Technology opened a factory in Calabar, Nigeria with 3 SMT Automatic chip placements lines, 4 pneumatic assembly lines and a production capacity of 200,000 set top boxes per month.
GPV opened a 4,500 SM electronics plant in Guadalajara, Mexico.
Jabil
• added an Anda iCoat5 selective conformal coater.
• and EnviroLeach launched an e-waste recycling plant in Memphis, Tennessee.
• subsidiary Nypro doubled the size of its medical device facility to more than 170,000 SF in Gurnee, Illinois.
Kitron invested in a SMT line in Johnstown, Pennsylvania.
Leoni opened a wiring systems production in Kolomyia city, Ukraine.
Libra Industries hired Alan Vannasy as Sr. PCB Designer.
Linn Products added four Europlacer iineo+ placement platforms.
Lite-On Technology invested US$45 million to establish an automotive electronics subsidiary in Suzhou and US$35 million for a storage devices and components subsidiary in Changzhou, China.
Logic PD named Jamie Jansen, VP of Sales.
Microart Services added two high-speed SMT production lines to its ISO 9001:2008 and 13485:2003 registered facility in Markham, Ontario.
Newbury Electronics celebrated 60th anniversary with £150,000 investment in new equipment.
Oppo Mobiles set up mobile phone manufacturing facility in Greater Noida, India.
P4Q Electronics added a Sawyer Robot.
Salcomp opened an 85,000 SM factory in Guigang, China.
Sanmina
• closed its factory on the Indonesian island of Batam.
• reached a milestone of connecting more than 25,000 pieces of manufacturing equipment to the 42Q cloud solution.
Sypris Electronics installed a new electronics manufacturing SMT production line in Tampa, Florida.
Texcel Technology added a Kurt Ersa Versaflow 3/45 selective soldering machine.
TUV Rheinland India moved into a 14,000 SM facility in Electronic City in Bangalore.
Venture Corporation acquired a 60-year leasehold land site in Batu Kawan Industrial park in Malaysia.
VirTex appointed Steve Kithil, Business Development Manager.
ZKW Elektronik invested in a Scorpion high-speed dispenser from Essemtec.
PCB Fabrication
WORLD
• PCB production increased 2.2% y/y in real terms to estimated $58.2 billion in 2016, while North American PCB production decreased 0.1%. –IPC
• PCB & MCM electronic system design revenue increased 16.4% y/y to $195 million for 2Q17. –ESD Alliance
• PCB design software market is forecast to increase at 13% CAGR to $4,800 million in revenues by 2026. –Future Market Insights
• PCB E-scrap market is expected to expand at 7.3% CAGR to 3.1 million tons by 2026. –Researchmoz
American Standard Circuits achieved AS9100 Rev D certification.
Bay Area Circuits added an Excellon HS-2L Intelli-Drill system in Fremont, California.
Cadence Design Systems appointed John Wall, Sr. VP and CFO.
Calumet Electronics hired 30 new employees in September and another 30-40 in October.
CTI America opened a PCB manufacturing plant in Maryland.
Elmatica hired Terho Koivisto as Country Manager in Finland.
Hofstetter PCB acquired APL Oberflächentechnik.
Ion Science completed its move into a new ultra-modern 1500m² facility in Fowlmere, England with the purchase of a complete iineo Europlacer SMT pick and place production line system.
Meiko Electronics is investing $50 million to build a plant in Vietnam’s Quang Minh Industrial Park.
Prototron Circuit appointed Lynda Bain to lead sales in U.S. Midwest.
Shimadzu plans to double PCB production capacity in Philippines by 2019 with addition of more manufacturing lines.
Taiwan Pucka developed six layer flex circuits using all screen-printing process for wearable devices.
Unitech Printed Circuit Board appointed Hung Hsien-ching, President after Hsu Cheng-hung stepped down.
Materials & Process Equipment
SMT market is projected to expand at 6.8% CAGR from $3.8 billion in 2017 to $5.2 billion by 2022. –Knowledge Sourcing Intelligence
Specialty chemicals market totaled $556 billion in 2016, driven by growing global demand for personal electronics and the increasing buying power of Chinese consumers. –IHS Markit
Advanced composites market will grow at 11% CAGR from $38.4 billion by 2022 to $23 by 2017. –RnRMarketResearch
Automotive electronics’ conformal coatings market is projected to grow at over 6% CAGR to $915 million by 2021. –Technavio
Conducting polymers market value is expected to grow at 9% CAGR from $4.4 billion in 2017 to $6.8 billion by 2022. –Markets and Markets
Conductive inks market is projected to expand at 6.2% CAGR from US$ 2,500 million in 2015 to US$ 4.4 billion by 2025. –Coherent Market Insights
Copper and copper alloy foils market is expected to grow at 6.1% CAGR from $985 million in 2017 to $1400 million in 2023. –Market Research Future
Electrodeposited copper foils market value is estimated to expand at 11.6% CAGR from $6,700 million in 2017 to $16,000 million by the end of 2025. –Persistence Market Research
Electronic chemicals market is forecast to reach $39 billion by the end of 2026, on the back of growing demand from the semiconductor & IC and PCB industries. –Reportlinker
Epoxy composite market is expected to
grow at ~7.4% CAGR to ~ $38 billion by 2023. –Market Research Future
ESD foam packaging market will grow at 6.3% CAGR from $173 million in 2017 to $233 million in 2022 due to the swift surge in the miniaturization of electronic devices. –Transparency Market Research
Glass fiber market is forecast to grow at 4.8% CAGR to $9.4 billion by 2022. –Lucintel
Laser equipment market (excluding marking) will grow at a 15% CAGR to $4 billion by 2022. –Yole Développement
Solder ball market is anticipated to rise at 6.3% CAGR from $187 million in 2016 to $324 million by 2025. –Transparency Market Research
Thermal interface materials market is forecast to grow at 12% CAGR from $867 million in 2016 to $1,700 million by 2025. –Research and Markets
3M
• appointed Paul Keel to Sr. VP, Business Development and Marketing-Sales, and Jon Lindekugel to Sr. VP, Supply Chain.
• opened a design center in Japan.
CAC acquired the assets used to manufacture aluminum-bonded-copper from Oak Mitsui.
Camtek completed sale of its PCB business to affiliate of Principle Capital.
Creative Electron moved to larger facility in San Marcos, California.
Dow Chemical CEO, Andrew Liveris joined board of battery firm Novonix.
DWFritz Automation appointed Steve Pecis, VP of Operations.
Electrolube
• opened a R&D facility in Suzhou, China.
• received automotive standard IATF 16949.
ESI appointed Lynne Camp to Board of Directors.
Europlacer officially opened its manufacturing base and French HQ in Rocheserviere, France.
GÖPEL electronic officially inaugurated new production building for test and inspection systems in Jena, Germany.
Indium Corporation named Brian Reid, VP of Global Operations; Rick Short, Corporate Associate VP and Sr. Director of Marketing Communications; Dawn Roller, Associate VP of Human Resources and Bill Jackson Sr. Director and GM of the Compounds Business Unit
InnoLas Solutions opened a new application and R&D center in Gilching, Germany.
Isola Group named Sean Mirshafiei, Global VP of Marketing.
Keysight Technologies’ corporate HQ in Santa Rosa was partially damaged by Northern California fires.
Nano Dimension opened an 8,600 SF nano particle ink production facility in Ness Ziona, Israel.
Nordson ASYMTEK named Per Orla-Jensen, GM of the Americas Sales and Support Teams and promoted Russ Horne to Sales Engineer and Marc McCormick to Technical Product Specialist for the Americas.
Nordson VP, General Counsel and Secretary, Robert Veillette retired.
Oak-Mitsui plans to close its aluminum bonded copper manufacturing operation in Hoosick Falls, NY by January 2018.
Omron opened a new Nordic Automation Center in Malmö, Sweden.
Panasonic introduced new software solution, ‘Manufacturing Operations Optimizer MFO’ that accurately emulates the mounting process of electronic components on PCBs.
Park Electrochemical named Benjamin Shore, Sr. VP of Business Development and John Jongebloed, President of Neltec Business Unit.
Taiyo America expanded its technical support and new business development with a new Dallas/Fort Worth office.
Tongtai Machine and Tool opened technical center in Thailand.
Ventec appointed John Pardini, Global Account Manager for IMS Materials and hired Robert Art as Area Sales Manager for Central and Eastern Europe.
Components
SEMICONDUCTORS
• Semiconductor revenue is forecast to increase 19.7% y/y to $411 billion in 2017 driven by memory, which is expected to grow 57% y/y. –Gartner
• Semiconductors sales increased 23.9% y/y to $35.0 billion in August 2017. –SIA/ WSTS
• Semiconductor equipment billings grew 35% y/y to record US$14.1 billion in 2Q17. –SEMI
• Semiconductor fab equipment spending (new and refurbished) is expected to increase 37% y/y in 2017, reaching a new annual spending record of about US$55 billion. –SEMI
• Silicon wafers market will expand at 8.5% CAGR from $333 million in 2016 to $503 million in 2022. –Market Research Future
CHINA’S
• total pure-play foundry sales are expected to grow 16% y/y to about
$7.0 billion in 2017. –IC Insights
• blank 12-inch silicon wafers demand is forecast to increase to 1.1-1.3 million pieces per month in 2018, up from 500,000 units in 2017. –Digitimes
European semiconductor sales increased 18.8% y/y to US$ 3.222 billion in August 2017. –ESIA
North American semiconductor equipment manufacturers’ billings increased 27.7% y/y to $2.18 billion in August 2017. –SEMI
South Korea’s semiconductor manufacturing equipment shipments grew 212% y/y to US$4.79 billion in 2Q17. –SEMI
Taiwanese semiconductor industry is expected to increase 3.5% y/y to NT$2.54 trillion (US$84.5 billion) in 2017. –Deputy Minister of Economic Affairs
Power semiconductor revenues grew by 3.9% y/y in 2016 and are expected to grow by 7.5% in 2017 to $38.3 billion. –IHS Markit
Tablet applications processor market grew 5% y/y to US$984 million in 1H17. –Strategy Analytics
DRAM bit production will grow at 19.6% in 2018 as major suppliers intend to slow down the pace of their capacity expansions and technology migrations for chip price stability. –DRAMeXchange
COMPONENTS
• Nanoelectromechanical systems market is predicted to expand at 37.4% CAGR from $11.3 million in 2016 to $55.4 million by 2021. –BCC Research
• Power transistor sales grew 5% in 2016 to $12.9 billion and are forecast to rise 6% to new record of $13.6 billion in 2017. –IC Insights
• RF GaN device market will grow at 14% CAGR to $733 million in 2021 driven by defense applications. –Strategy Analytics
DISPLAYS, PANELS, MONITORS
• PC monitor shipments dropped 6.4% y/y to 28.5 million units in 2Q17; full year market shipments are expected to decline from 117 million units in FY’17 to less than 112 million units in 2020. –IDC
• Large TFT LCD market unit shipments are expected to increase 1% y/y in 2017 as area shipment grow 6% to 180 million SM. –IHS Markit
• OEM TV shipments increased 4.3% y/y to 33 million units in 1H17. –Sigmaintell
LED
• LED market is poised to grow at 10.4% CAGR to approximately $63 billion by 2025. –Research and Markets
• LED lighting module market will expand at 22.6% CAGR from nearly $4 billion in 2016 to $14 billion in 2022. –Yole Développement
• High-brightness LED production value is forecast to grow 2-5% annually in 2018-2022 from US$13 billion in 2017. –Digitimes Research
• China LED chip output value is forecast to grow 30% y/y in 2017 after 11.5% y/y expansion in 2016. –GGII
SENSORS
• Automotive sensing market (MEMS and classic active sensors such as pressure, inertial, magnetic, imaging, radar and LiDAR) is expected to grow from $11 billion in 2016 to $23 billion by 2022. –Yole Développement
• Biomedical sensors market value will expand at 6% CAGR from $13 billion in 2016 to $18 billion by the end of 2022. –Research and Markets
• CCD and CMOS sensors market will grow at 17% CAGR from $14 billion in 2017 and $30 billion by 2022. –Research and Markets
• Force sensors market is projected to grow at 5% CAGR from USD 2 billion in 2016 to USD 2.7 billion by the end of 2022. –Research and Markets
• Hall-effect current sensor market is expected to grow at 8.4% CAGR from $910 million in 2017 to $1,475 million by 2023. –MarketsandMarkets
• Image sensor market is expanding at slightly above 10.5% CAGR from USD11.4 billion in 2016 to USD 20.8 billion by 2022. –Zion Market Research
LIDAR
• applications (cartography, corridor mapping, exploration, meteorology, automotive and urban planning) market is predicted to grow at 26% CAGR to more than $5.2 billion by 2022. –Markets and Markets
• sensor production cost is expected to gradually decrease from as high as US$5,000 in 2017 to US$1,500 in 2022 and US$500 in 2027. –Yole Development
Smart sensor market will grow at 18.9% CAGR from $20.75 billion in 2016 to $82 billion by 2024. –Esticast Research
UV sensor market will grow at 29% CAGR from 2017 through 2021. –Research and Markets
Wireless sensor network annual unit shipments will triple in 2022 from 1 billion in 2018. –Research and Markets