EL SEGUNDO, CA -- Average global pricing for commodity electronics
components is expected to rise by 2.3% in the third quarter sequentially, due
to shortages and resulting price hikes for memory chips, according to iSuppli.
Following declines of
8.4% in the fourth quarter 2008, 9.2% in the first quarter 2009 and 5% in the
second, overall prices are expected to undergo a short-term rise in the third
quarter. Most components actually are expected to experience price declines in
the third quarter, but the average is being skewed by DRAM, the firm said.
Prices will begin declining again in the fourth quarter, with a moderate 0.2%
decrease.
“Overall component
pricing is being heavily impacted by price hikes for DRAM, spurred by a
shortage of DDR3 parts,” said Eric Pratt, vice president, pricing and
competitive analysis, at iSuppli. “Overall DRAM pricing is expected to rise by
10.2% in the third quarter.” With DRAM accounting for 9.1% of global
semiconductor revenue in 2008, the price increase in this area is having an
inordinate impact on overall component costs.
Other areas seeing price
increases include analog ICs, discretes and filters.
Pricing will decrease
moderately during the third quarter for most major memory segments. NAND flas
will experience a 0.3% decline, NOR pricing will decrease 1.1%, and EEPROMs
will remain flat.
Declines also are
expected for standard logic ICs, crystals, oscillators, connectors, resistors
and magnetics. An overall decline is expected for capacitors.
Despite these decreases,
the overall rise in the PPI indicates pricing conditions are changing for
commodity components.
“iSuppli previously expected
price decreases would be of a greater magnitude in the third quarter as
commodity component suppliers cut tags to capitalize on rising demand,” Pratt
said. “However, semiconductor suppliers have scaled back their capacity
significantly during the downturn. This means supplies are somewhat tighter
than expected, preventing prices from declining as much as expected.”
SCOTTSDALE, AZ – China's IC market is expected to reach $100.1 billion in
2013 and represent 35% of the worldwide IC market, up from 14% in 2003,
according to IC Insights.
 

In
2001, the Asia-Pacific IC market (including China, Taiwan, Singapore, Korea, etc.)
first surpassed the Americas to become the leading IC-consuming market. 
 

In
2008, the Asia-Pacific IC market was $111.2 billion, and, for the first time,
was larger than the Americas, European, and Japanese IC markets combined, says
the research firm.
 

With more of the world's electronics systems forecast
to be produced in Asia-Pacific (non-Japan), and China in particular, IC
Insights believes Asia-Pacific IC market growth will continue to significantly
outpace total IC market growth for at least the next five years.
 

In
2009, China and Taiwan together are expected to represent about 75% of the IC
market in the Asia-Pacific region. 
 

In 2013, IC Insights forecasts the
China and Taiwan IC market together will reach about $139 billion and represent
almost 80% of the total Asia-Pacific IC market and almost half (48%) of the
worldwide IC market.

In 2008, China's IC market increased 5% to $56.2
billion, compared to a 6% decline for the total worldwide IC market. Although
China's IC market is forecast to decline 8% in 2009, this performance would
still be much better than the 17% drop expected for the total IC market.
Moreover, the Chinese IC market is forecast to have a 2008-2013 CAGR of 12%,
double the 6% forecast for the worldwide IC market during this same time
period.
AUSTIN,
TX -- Mobile phone display shipments are
expected to improve through 2009 due to relatively strong demand for
smartphones, video capabilities and the growing China market.
Total
mobile phone display shipments are forecast to increase 16.3% and 17.6% in the
second and third quarter, respectively, or 36.9% in aggregate, reversing a drop
of 11% sequentially and 19% year-over-year, according to DisplaySearch.
“Growth
in mobile phone display shipments will be driven by demand from major mobile
phone manufacturers such as Nokia, Samsung, LG, Sony Ericsson and Motorola, as
well as Chinese brands including Huawei, ZTE as well as Tianyu and
white box manufacturers,” said Hiroshi Hayase, DisplaySearch’s director of
small/medium display research. “In addition, the availability of low cost
mobile phones in these regions will also contribute to the anticipated growth
for this segment.”
More
than 20% of mobile phone displays were shipped to Chinese brands and white box
manufacturers, mainly in China. White boxes are unbranded mobile phones
designed to be similar to popular designs by top-tier brands such as Nokia,
Samsung and Apple. Produced in
China-based manufacturing facilities, these knockoffs are sold at significantly
lower price points. The total amount of mobile phone displays shipped for the
China market is expected to exceed display shipment amount for Samsung Telecom.
As a result, the demand for mobile phone displays will increase.
The number of mobile phone
shipments reached 276.1 million in the first quarter. Nokia retained its
top position with 31.7% share, followed by Samsung, LG, Motorola and Sony
Ericsson.
SAN JOSE–Worldwide sales of semiconductors for the second quarter were $51.7 billion, up 17% sequentially, the Semiconductor Industry Association reported today.
TEMPE, AZ – New orders for manufactured products jumped in July, carrying production along for the ride, according to the latest data from the Institute for Supply Management.
Read more: July Manufacturing Shows Glimmer of Recovery
