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Demand soars for CMOS image sensors

Tue, 22 May 2012 13:04:00 CDT

New camera-equipped portable equipment, including touchscreen smart phones and media tablets, will drive demand for CMOS image sensors through 2016, according to researcher IC Insights.

Image sensor sales will grow 8 percent to a record $6.3 billion compared to $5.8 billion in 2011, IC Insights reported. Growth will continue through 2016 when the image sensor market reaches $10.8 billion. Besides smart phones and tablet computers, digital imaging applications embedded in automobiles, medical equipment, security networks, and other vision-recognition systems will also drive image sensor growth, according to IC Insights.

Electronics executives expect second half growth

James Carbone — Mon, 21 May 2012 9:12:00 CDT

Electronics component manufacturers and distributors expect business to improve as the year progresses, despite economic uncertainty in the U.S. and the debt issues in Europe.

Industry executives, attending the recent Electronics Distribution Show (EDS) in Las Vegas, said that they were cautiously optimistic that component demand would build during the rest of the year, although first-quarter demand and revenue was weaker compared to the fourth quarter of 2011 for many companies.

Media tablet shipments declined 38 percent from fourth quarter

Tue, 15 May 2012 11:04:00 CDT

Shipments of media tablets in the first quarter totaled 17.4 million units, a 120 percent increase from the first quarter of 2011, according to researcher IDC. However, media tablet shipments were down 38 percent compared to the fourth quarter of 2011.

IDC reported the decline in first quarter shipments was forecast, but the drop was steeper than expected. IDC had forecast a 34 percent decline in shipments in the first quarter from the previous quarter.

Micron sets sights on Elpida

Mon, 14 May 2012 10:23:00 CDT

Micron Technology is negotiating to acquire Japanese memory chipmaker Elpida, which had filed for bankruptcy protection in February.

If Micron, based in Boise, Idaho, acquires Elpida, Micron would become the second largest DRAM manufacturer with about 25 percent of the market share. The acquisition would position Micron right behind Samsung, the current leader in the global DRAM market.

Prices, leadtimes will stay stable for IPDs

Gina Roos — Mon, 14 May 2012 9:58:00 CDT

Buyers can expect stable supply and pricing for integrated passive devices (IPDs) in 2012. Leadtimes for thick film resistor-capacitor (RC) networks typically range from six to eight weeks, while deliveries for silicon-based protection and filter devices are comparable in the eight- to 12-week range.

While suppliers do not expect any supply issues this year, there was "some minor fluctuation in deliveries" for silicon-based devices, due to the floods in Thailand which impacted backend assembly/packaging/test houses, according to Ashok Chalaka, president and CEO, OnChip Devices Inc., based in Santa Clara, Calif.

Global semiconductor sales declined in the first quarter

Thu, 10 May 2012 12:51:00 CDT

Global sales of semiconductors in the first quarter declined 7.9 percent compared to the first quarter of 2011, according to the Semiconductor Industry Association (SIA).

Sales in the first quarter totaled $69.9 billion down from $75.9 billion in the first quarter of 2011, the SIA reported. First quarter 2012 sales were also down 2.2 percent from the fourth quarter of 2011.

Printed circuit board orders rise

Wed, 9 May 2012 11:25:00 CDT

Combined shipments of rigid printed circuit boards (PCBs) and flexible circuits in March declined 12.2 percent from March 2011, while orders booked increased just 0.2 percent, according to Association Connecting Electronics Industry (IPC). However, shipments and orders increased in March compared to February.

The trade group noted that year to date, combined industry shipments were down 6.5 percent and bookings were up 4.1 percent. Compared to February, combined shipments of PCBs and flexible circuits in March 2012 increased 11 percent and bookings increased 8.8 percent. The combined (rigid and flexible) industry book-to-bill ratio in March 2012 strengthened to 1.06, IPC reported.

Panasonic Electronic Components Jiangmen China Factory Suffers Storm Disaster

Wed, 9 May 2012 11:17:00 CDT

Thank you for your strong support of Panasonic Film Capacitors and the entire Panasonic Electronic Components product line manufactured by Panasonic Industrial Devices (Jiangmen) Co., Ltd. (PIDJM).

On April 29, 2012 at midnight, a strong storm, which news sources identified as a tornado, occurred locally South of Guangdong, China.

IDT makes two acquisitions

Tue, 8 May 2012 9:45:00 CDT

Integrated Device Technology, Inc. (IDT) has acquired Fox Electronics in an all-cash transaction for approximately $30 million, and has agreed to buy PLX Technology for $330 million.

Fox Electronics, based in Florida, makes oscillator products, quartz crystals, and voltage-controlled crystal oscillators. It had $23 million in revenue in 2011.

DRAM contract prices increased in April

Tue, 8 May 2012 9:33:00 CDT

Despite oversupply, contract prices for DRAM increased about 5 to 6.5 percent in the first half of April, according to researcher TrendForce.The av

erage contract price of 4 gigabyte (GB) DRAM modules increased 6.58 percent, while the 2 GB module price rose 5 percent, TrendForce reported.

Semiconductor equipment orders rise

Thu, 3 May 2012 14:10:00 CDT

A 10.7 percent increase in new orders resulted in a sharp rise in the semiconductor equipment book-to-bill ratio.North American-based manufacturers of semiconductor equipment posted a 10.7 percent increase in new orders as revenue increased to $1.48 billion in March from $1.33 billion in February, according to trade association SEMI.

New U.S anti-counterfeit part measures will have global supply chain impact

Thu, 3 May 2012 13:53:00 CDT

New Department of Defense counterfeit parts regulations could have a broad impact on hundreds of global companies that supply billions of dollars of parts and products to the US government, according to researcher IHS.

The 2012 U.S. National Defense Authorization Act (NDAA) will impact not only U.S. companies doing business with the government, but with overseas suppliers as well.

Smartphones, media tablets drive semiconductor demand in 2012

Tue, 1 May 2012 9:57:00 CDT

Semiconductor revenue will grow more than expected this year because of healthy demand for portable equipment, according to researcher IHS.

Chip revenue will grow about 4.3 percent to $324.7 billion in 2012, IHS reported. Earlier, IHS had forecast that revenue growth would be at 3.3 percent.

OEMs rethink low-cost labor outsourcing

James Carbone — Tue, 1 May 2012 9:07:00 CDT

Many large and mid-size electronics manufacturers have abandoned the idea of locating manufacturing in countries that have the lowest-cost labor rates.

Instead, more OEMs and electronics manufacturing services (EMS) providers are taking a regional approach and building products in the regions in which they want to sell them. Electronics manufacturers, especially mid-size companies, are basing outsourcing decisions on total cost rather than just low labor rates.

Resistor prices and leadtimes are stable for now

Gina Roos — Tue, 24 Apr 2012 9:22:00 CDT

Buyers can expect stable lead times and pricing for fixed resistors in 2012, with the only exception being axial-leaded resistors. Some suppliers increased prices by as much as 25 percent in the first quarter of 2012, primarily due to raw materials increases, transportation costs, and labor costs in China.

Lead times for most standard resistors range between six to eight weeks, and, in some cases, can be as short as four weeks. Most suppliers do not foresee any changes over the next six months that could impact deliveries.

Ultrabooks, iPads and iPhones will drive NAND flash growth in 2012

Fri, 20 Apr 2012 13:16:00 CDT

Ultrabooks equipped with solid-state drives will help foster 8 percent growth for flash memory in 2012 as revenue will increase to nearly $23 billion, up from $21.2 billion in 2011 according to researcher IHS.

With growing demand from smart phones and media tablets, as well as ultrabooks, NAND revenue will post healthy growth through 2016 when the market reaches $30.9 billion, the researcher reported.

Weak demand means lower polysilicon prices

Thu, 19 Apr 2012 13:01:00 CDT

Buyers can expect contract and spot market prices for polysilicon – a key raw material in the production of solar panels and semiconductors – to decline this year because of excess supply, according to researcher IHS.

“Following major declines in 2011, the photovoltaic (PV) industry is in for another round of major price erosion in 2012, as polysilicon production runs far ahead of demand,” said Henning Wicht, director and principal analyst for photovoltaics at IHS. He noted that spot market prices for polysilicon plunged by 65 percent in 2011, the biggest decline since 2009.

Global semiconductor revenue grew less than 2 percent in 2011

Wed, 18 Apr 2012 11:26:00 CDT

Worldwide semiconductor revenue grew 1.8 percent to $306.8 billion in 2011, although five of the top 10 semiconductor manufacturers suffered sales declines in 2010, according to researcher Gartner Inc.

In terms of revenue growth rates, QUALCOMM and Intel led the pack. Intel, the largest semiconductor company, grew revenue 20.7 percent to $50.6 billion in 2011 as its market share grew to 16.5 percent compared to 16.3 percent in 2010, Gartner reported. QUALCOMM posted 38.8 percent sales growth as its revenue increased to nearly $10 billion. QUALCOMM is the sixth largest semiconductor company.

PC shipments increased in first quarter

Tue, 17 Apr 2012 10:09:00 CDT

Flooding in Thailand, which disrupted production of hard-disk drives, had little impact on computer sales in the first quarter as PC shipments increased 1.9 percent to 87.3 million units, according to researcher Gartner Inc. The researcher had earlier forecast that unit shipments would drop 1.2 percent in the quarter.

“In general, the hard-disk drive (HDD) supply shortage had a limited impact on PC supply during the first quarter,” said Mikako Kitagawa, principal analyst at Gartner. He added that there was “moderate impact on low-end consumer notebooks and the white-box market in selected regions.”

Nokia’s Lumia 900 smart phone carries a $209 BOM

Mon, 16 Apr 2012 14:03:00 CDT

Nokia’s new Lumia 900 smart phone has a bill of materials (BOM) totaling $209, according to an analysis of the device by researcher IHS. The Lumia 900 also has a manufacturing cost of $8, bringing the total cost for Nokia to produce the phone to $217.

With the retail price of the phone coming in at $450, the BOM represents 46 percent of the cost, IHS reported. The cost analysis includes the hardware and manufacturing costs and not expenses such as software, licensing, and royalties.

Semiconductor growth in India to rise 20 percent in 2012

Thu, 12 Apr 2012 11:17:00 CDT

Driven by growing demand for mobile phones, computers, and televisions, semiconductor revenue in India will increase 20 percent to $9.2 billion as the country will become the fastest growing market for semiconductor consumption, according to market researcher Gartner Inc.

Globally, semiconductor revenue is forecast to grow 4 percent to $316 billion in 2012. Mobile phones, media tablets, PCs, servers, liquid crystal display (LCD) televisions, solid state drives, and set-top boxes will account for nearly 50 percent of total global semiconductor consumption during 2012.

Viasystems to buy DDi

Wed, 11 Apr 2012 9:59:00 CDT

Electronics manufacturing services provider Viasystems Group Inc. will acquire DDi Corp. for $268 million, the companies announced.

With the acquisition, Viasystems, based in St Louis, Mo., will increase its market share in the military and aerospace market, along with the industrial and instrumentation market, broadening its customer base.

Ceramic capacitor inventories remain high

Gina Roos — Mon, 9 Apr 2012 14:05:00 CDT

High inventory levels and sluggish demand means it will be a buyer’s market for ceramic capacitors with falling prices and stable leadtimes.

Buyers can expect single-digit price drops for many ceramic capacitors, although other specialty ceramic capacitors should have stable pricing. Leadtimes will be in the 6 to 12 week range for most ceramic capacitors, and will only stretch if there is a sudden, unexpected uptick in demand, according to capacitor manufacturers.

Orders for new printed circuit boards increase

Fri, 6 Apr 2012 9:37:00 CDT

Combined shipments of rigid printed circuit boards and flexible circuits in February decreased 2.3 percent from February 2011, while new orders booked increased 6.5 percent, according to the Association Connecting Electronics Industries (IPC).

Compared to the previous month, industry board shipments and new orders combined increased 6 percent in February.

Hard drive shipments declined 4.5 percent in 2011

Thu, 5 Apr 2012 8:39:00 CDT

Hard disk drive production in Thailand that was shut down by severe flooding last October will not return to pre-flood levels until the second half of 2012, according to researcher International Data Corp. (IDC).

Worldwide shipments of hard disk drives (HDD) declined 4.5 percent in 2011, due in large part to flooding in Thailand which shut down production facilities of Western Digital and Toshiba, as well some factories of drive component suppliers.

Semiconductor foundry business grew 5.1 percent in 2011

Wed, 4 Apr 2012 9:27:00 CDT

Communications equipment is the single biggest application for semiconductor foundries.The global semiconductor foundry market increased 5.1 percent to $29.8 billion in 2011 driven by mobile applications, according to researcher Gartner Inc.

Strong sales of media tablets and mobile phones prevented a slide in semiconductor demand and foundry revenue, noted Samuel Tuan Wang, research director at Gartner. Compared to 2010 when foundry revenue grew 40.5 percent from 2009, the foundry market in 2011 was "relatively flat.”

Analog Devices acquires Multigig for high-speed clocking technology

Tue, 3 Apr 2012 12:27:00 CDT

NORWOOD, Mass.--(BUSINESS WIRE)-- Analog Devices, Inc. (stock symbol: ADI) today announced that it has acquired Multigig, Inc., a small, privately-held San Jose, California, company specializing in highly innovative high-performance clocking technology. The acquisition will enhance ADI’s clocking capabilities in stand-alone and embedded applications, and will strengthen ADI’s industry-leading position in delivering high-speed data converters and signal processing solutions for our customers.(visit ADI's clock and timing portfolio page)

Expect stable prices for analog ICs for rest of the year

James Carbone — Tue, 3 Apr 2012 11:29:00 CDT

Prices for analog semiconductors will remain soft and leadtimes will be steady through the year, despite rising demand as OEMs and electronics manufacturing services providers (EMS) increase purchases.

Increasing demand will mean the analog chip market will grow four percent to $46.3 billion in 2012 after flat sales in 2011, according to researcher IC Insights, headquartered in Scottsdale, Ariz. Analog Devices’ integrated circuits (ICs) include amplifiers/comparators, interface ICs, voltage regulators and reference devices, data converters and application-specific analog products that target specific end uses such as automotive, telecommunications, computer, and consumer applications.

Semiconductor equipment orders increased in February

Mon, 2 Apr 2012 11:24:00 CDT

The three-month average of semiconductor equipment orders in February totaled $1.33 billion, a 12.2 percent increase from January, according to trade association SEMI. However, orders were down 16.5 percent from February 2011.

The three-month average of worldwide billings in February 2012 was $1.32 billion, a 6.4 percent increase from January. Billings declined 28.3 percent from February 2011 when billings were $1.84 billion.

OSD market to grow seven percent in 2012

Thu, 29 Mar 2012 10:16:00 CDT

The global market for optical electronics, sensors and discretes (OSD) will grow seven percent to $61.6 billion in 2012 driven by strong demand for sensors, according to market researcher IC Insights. Demand will remain strong through at least 2016 when the OSD market will reach $95.1 billion.

The OSD market, including micro-electromechanical systems-based sensors, fiber optic transmitters, CMOS image sensors, light-emitting diodes (LEDs), and power transistors grew eight percent in 2011 to $57.4 billion, IC Insights reported.

Purchases of chip equipment will decline in 2012

Wed, 28 Mar 2012 13:59:00 CDT

Worldwide semiconductor manufacturing equipment spending will drop 11 percent to $38.9 billion in 2012 from $44 billion in 2010, according to researcher Gartner Inc.

Weak market conditions for semiconductors in the second half of 2011 resulted in cutbacks in manufacturing expansion plans of chip suppliers, noted Klaus Rinnen, managing vice president at Gartner. “This investment weakness will continue through the first half of 2012 and will surge in the second half of the year,” he said. “There is a risk that some capacity expansion plans will slip from the second half of 2012 into 2013.”

Semiconductor inventories should decline in first quarter

Tue, 27 Mar 2012 13:22:00 CDT

Semiconductor inventory levels at suppliers will decline 0.5 percent in the first quarter after reaching an 11-year high in the fourth quarter of 2012, according to researcher IHS.

The decline in average semiconductor days of inventory (DOI) is a sign that market conditions are improving for the chip industry. Because of excess production and weak demand, average global inventory semiconductor inventory levels at chip suppliers increased to 84.1 DOI in the fourth quarter, compared to 81.3 in the third quarter, IHS reported.

RoHS Recast still causes confusion in the supply chain

Gina Roos — Mon, 26 Mar 2012 9:27:00 CDT

Most electronics OEMs understand that they must meet new requirements of RoHS Recast, an update of the European Union's (EU) Restriction on the Use of Certain Hazardous Substances (RoHS) Directive. RoHS, which went into effect in 2006, was revised last year, and there is some confusion in the electronics industry over several key points of the law.

Design Chain Associates (DCA) recently addressed some of the most frequently asked questions about changes to the law which restricts the use of lead, mercury, cadmium, hexavalent chromium, polybrominated diphenyl ether, and polybrominated biphenyl in electronics equipment.

New iPad 32 GB costs Apple $375.10 to produce

Wed, 21 Mar 2012 13:50:00 CDT

The bill of materials for Apple’s new iPad 4G LTE, equipped with 32 gigabytes (GB) of NAND flash, totals $364.35, according to a cost analysis of the device by researcher IHS.

The device has a manufacturing cost of $10.75, bringing the total cost to produce the new iPad to $375.10, IHS reported. The BOM of the 16 GB 4G LTE version amounts to $347.55, and the 64 GB version’s BOM is estimated at $397.95.

Worldwide microprocessor demand increased in 2011

Tue, 20 Mar 2012 12:49:00 CDT

Worldwide PC microprocessor revenue increased 13.2 percent to more than $41 billion in 2011 as unit shipments and average prices rose, according to researcher international Data Corporation (IDC).

Global processor revenue was buoyed by strong fourth-quarter demand as revenue increased 14.2 percent to $10.9 billion, compared to the fourth quarter of 2010, IDC reported.

Flextronics to acquire EMS specialist Stellar Microelectronics

Mon, 19 Mar 2012 10:14:00 CDT

Electronics manufacturing services (EMS) provider Flextronics has signed a definitive agreement to acquire Stellar Microelectronics, a full-service EMS provider based in Valencia, California.

Stellar Microelectronics specializes in advanced custom packaging solutions for the aerospace, defense, and medical industries. Its annual sales are just under $100 million. Additional terms of the deal were not disclosed.

Gartner: Semiconductor market will rise 4 percent in 2012

Wed, 14 Mar 2012 13:12:00 CDT

Worldwide semiconductor revenue will grow 4 percent to $316 billion in 2012, driven by rising demand for media tablets, smart phones, and PCs, according to researcher Gartner Inc.

"The semiconductor industry is poised for a rebound starting in the second quarter of 2012," said Bryan Lewis, research vice president at Gartner. "The inventory correction is expected to conclude this quarter, as foundry utilization rates are bottoming and the economic outlook is stabilizing."

Japan earthquake, one year later: Electronics companies rethink sourcing choices

James Carbone — Mon, 12 Mar 2012 15:07:00 CDT

One year ago, Japan was reeling from a massive earthquake and tsunami that slammed into the island nation, killing more than 22,850 people, leveling homes and businesses, and causing meltdowns of three reactors at the Fukushima nuclear power plant.

While the human cost of the natural disaster was enormous, the March 11, 2011 quake in northeastern Japan also had a huge impact on the electronics supply chain. The earthquake destroyed or damaged many fabs and factories that produce semiconductors, passive electronic components, and other materials used in the production of parts and electronics equipment.

What buyers need to know about sourcing fans

Gina Roos — Mon, 12 Mar 2012 13:43:00 CDT

Buyers can expect shorter leadtimes and better prices for cooling fans as some major fan manufacturers push to provide complete thermal management solutions. These manufacturers are offering more product accessories, options, and value-added and custom services.

This trend could also drive new product development teams, including buyers and designers, to look at the cooling solution much earlier in the design stage. Many OEMs wait until the latter part of the design cycle to source cooling solutions, which leads to increased costs. Often purchasers cannot find cooling fans with the required airflow performance in a frame size that fits their enclosures.

Fab equipment spending stays flat

Thu, 8 Mar 2012 13:31:00 CST

Spending by semiconductor suppliers on fab equipment will be flat in 2012, but will increase 13 percent in 2013, according to trade association SEMI.

Fab equipment spending will total $38.55 billion compared to $38.96 billion in 2011, SEMI reported. In 2013 fab equipment purchases by chipmakers will rise to $45.5 billion.

Hard drive prices and profit margins rise

Tue, 6 Mar 2012 14:36:00 CST

Prices for hard-disk drives (HDD) from Seagate and Western Digital surged in the fourth quarter of 2012, due in part to flooding in Thailand that halted production of drives and components used in drives.

The flooding resulted in drive shortages and drove up prices as well as the gross profit margins of drive manufacturers, according to researcher IHS.

Intel to sell its stake of two wafer fabs

Tue, 6 Mar 2012 8:51:00 CST

Intel will sell its stake in two NAND flash memory wafer fabs to Micron for $600 million, the two companies announced.

Under the agreement, Micron will purchase Intel’s share of IM Flash Singapore (IMFS) and IM Flash Technologies (IMFT) in Manassas, Va.

Semiconductor equipment orders increased in January

Thu, 1 Mar 2012 14:33:00 CST

Orders for semiconductor equipment increased 7 percent in January to $1.18 billion compared to $1.1 billion in December 2011, according to trade association SEMI.

However, new orders for equipment were 22.1 percent lower than January 2011 when they totaled $1.51 billion, SEMI reported.

Orders increase for printed circuit boards

Wed, 29 Feb 2012 15:01:00 CST

Shipments of rigid printed circuit boards (PCBs and flexible circuits) in January declined 3.5 percent from January 2011, while orders booked increased 6.2 percent, according to the Association Connecting Electronics Industries (IPC).

Rigid PCB and flexible circuit sales followed “normal seasonal patterns in January,” with sales down from December, said Sharon Starr, IPC market research director.

Elpida files for bankruptcy

Tue, 28 Feb 2012 13:15:00 CST

Elpida Memory, the third largest global DRAM manufacturer, has filed for bankruptcy in Japan as the debt-riddled company seeks financial protection from creditors.

The company, which has suffered five consecutive quarters of financial losses, is $5.6 billion in debt. It had been seeking a partnership with other DRAM manufacturers, but an alliance never materialized and the company opted for bankruptcy.

Smartphones, media tablets drive wireless semiconductor growth

James Carbone — Thu, 23 Feb 2012 9:17:00 CST

The wireless semiconductor market will grow 12 percent annually and will outperform the overall semiconductor market because of strong demand for wireless chips by smartphone and media tablet manufacturers among other customer segments.

The good news for chip buyers is that despite robust growth for wireless semiconductors, chipmakers, for the most part, should be able to keep up with demand, although some chipmakers may have tight supply at times. Prices for many wireless semiconductors will drop.

Chipmakers closed 49 wafer fabs between 2009 and 2011

Fri, 17 Feb 2012 12:46:00 CST

Semiconductor companies closed 49 wafer fabs from 2009-2011, but wafer capacity increased because more 300 mm wafer fabs came on line, according to researcher IC Insights.

The industry has been reducing its older capacity since 2007. The bulk of these closings were older capacity includes fabs that use 200 mm, 150 mm, 125 mm and 100 mm wafers, the Scottsdale, Ariz.-based researcher reported.

Reports of counterfeit parts rise

Thu, 16 Feb 2012 9:48:00 CST

The number of counterfeit parts in the electronics supply chain increased to more than 1,300 in 2011 from 815 in 2010, according to a new report by researcher IHS.

In 2009 there were 324 incidents of counterfeit parts reported in the electronics supply chain, with the bulk of them at defense and aerospace manufacturers, IHS reported. In 2010 that number grew to 815 and in 2011, the number of reported counterfeit part incidents swelled to 1,363, according to IHS. It was the first time that the reported number of counterfeit parts reported exceeded 1,000.

Hard-disk drive prices will drop in the first half of 2012

Wed, 15 Feb 2012 8:58:00 CST

Buyers can expect prices of hard-disk drives to fall in the first and second quarters as drive manufacturers restore production that was halted by severe flooding in Thailand in October, according to researcher IHS.

However, while prices will decrease, they will remain inflated at 2011 levels. The average global drive price increased 28 percent in the fourth quarter after flooding knocked out drive production for major drive manufacturers. Prices will decline 3 percent in the first quarter and 9 percent in the second, IHS reported.

Regulators approve Google’s acquisition of Motorola Mobility

Tue, 14 Feb 2012 9:03:00 CST

Google’s planned acquisition of cell phone maker Motorola Mobility has cleared two important hurdles as regulators in the U.S and Europe has given the thumbs up to the proposed $12.5 billion deal.

The U.S. Department of Justice (DOJ) and the European Union said the acquisition would not lessen competition in the cell phone business.