08/10/2016 //
Markit Economics (now part of IHS) just released its July Purchasing Managers Indices by country and major region.
Source: www.markiteconomics.com
The Semiconductor Industry Association (SIA) announced worldwide sales of semiconductors reached $79.1 billion during the second quarter of 2016, an increase of 1.0% over the previous quarter and a decrease of 5.8% compared to the second quarter of 2015. Global sales for the month of June 2016 reached $26.4 billion, an uptick of 1.1% over last month’s total of $26.1 billion, but down 5.8% from the June 2015 total of $28.0 billion. Cumulatively, year-to-date sales during the first half of 2016 were 5.8% lower than they were at the same point in 2015. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.
“Global semiconductor sales increased slightly from Q1 to Q2 but remain behind the pace from last year, due largely to global economic uncertainty and sluggish demand,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Sales into Japan and China have been a bright spot midway through 2016, and a modest rebound in sales is projected during the second half of the year.”
Source: www.semiconductors.org
Custer Comments:
The U.S. Department of Commerce just released its June “Factory Orders” report, a more detailed version of the Durable Goods report published a week earlier:
Source: www.census.gov/indicator/www/m3/
Here are our updated estimates of 2Q’16 growth of the world electronic supply chain. Note that these estimates are still very preliminary as many companies in our sector composites have yet to report their 2Q’16 financial results.
Remember these are still early estimates.
Source: Company financials with Custer Consulting Group analysis
Russia's Roscosmos space corporation will spend about 259 million rubles ($3.9 million at the current exchange rates) by 2020 to develop and create electronics to substitute foreign analogues in the country's aerospace equipment, according to the data published on Russia's federal procurement portal.
According to the data, the corporation plans to spend 50 million rubles in 2016, 52 million in 2017, 54 million in 2018, 56 million in 2019 and 47.4 million in 2020.
Russia switched to an import substitution policy in mid-2014, after the West imposed several rounds of sanctions against the country citing its alleged involvement in the Ukrainian internal conflict.
Imported products are currently replaced both with Russian production and goods from countries, which have not introduced sanctions against Russia.
Source: www.sputniknews.com
Walt Custer is an industry analyst focused on the global electronics industry. Prior to forming Custer Consulting Group he was Vice President of Marketing and Sales for Morton Electronic Materials, a global supplier of specialty chemicals and process equipment for the PCB industry.
Custer has been a member of the IPC trade organization since 1975 where he received both the President's and the Raymond E. Pritchard Hall of Fame Awards. He is currently a member of the IPC Executive Market & Technology Steering Committee. Custer is also a Director of the EIPC European PCB trade organization.
He authors regular “Market Outlook” columns for Global SMT & Packaging magazine, the Journal of the HKPCA and the TTI MarketEYE website.