Results did not meet expectations.
The Japanese yen fell against the US dollar and other foreign currencies over the last three months. The dollar was under 80 yens last December, but rose to over 95 yens this week. This translates into a 20% decline in the yen over the last three months. Automobile manufacturers that rely on exports are reporting significant financial improvement, and have fueled a rise in the Tokyo Stock Exchange. The Nikkei reaches new highs every week. The US stock market indices are also reaching new highs, and many market analysts are optimistic that the run up in stock values will continue.
Let’s check the performance of a manufacturing industry that I am most interested in – the electronics industry. Global semiconductor shipments posted a negative growth rate in 2012 compared to the previous year. The big surprise for the year was a significant drop in December. This slowdown was felt in every country, even in Asia where things are booming for the industry. Worldwide shipments of cellular phones were down in 2012 compared with the previous year. This was very surprising; most of us thought cellphone sales would surpass 2011 levels because of all the hype with the new generation of smartphones.
The worldwide printed circuit industry declined significantly in December. The Taiwanese printed circuit industry posted record revenues every month during the first three quarters in 2012, but screeched to a halt in the fourth quarter, and declined during the last month of the year.
The personal computer industry in Taiwan has an unbelievable 90% share of the global PC industry. Unfortunately, they have a very pessimistic forecast for sales during the first quarter of 2013. Historically, the Japanese circuit board industry has a high level of shipments during the last quarter of the year, but may buck that trend due to a spill over effect from a significant drop in sales during December. All the major products -- build-up multilayer board, double & multilayer flex circuits and semiconductor substrates are showing the same downturn in business.
The best month for the circuit board industry in North America is the last month of the quarter. Most revenues are realized during this period. This trend did not come to fruition for December 2012; this was the worst month of the year. Annual shipments in 2012 came in at a 5% negative growth from 2011, the worst year in recent history.
Industry trends were all over the place during 2012 for the global electronics industry. Industry analysts are not sharing any good news for 2013. It looks like we have to take a wait and see position before we can predict any stabilization, growth or declines for the New Year.
Dominique K. Numakura, This email address is being protected from spambots. You need JavaScript enabled to view it.
DKN Research, www.dknresearchllc.com
DKN Research Newsletter
#1308, March 17th, 2013 (English Edition)
Electronic Packaging Industry News from Japan & Asia
(www.dknresearchllc.com)
Headlines of the week
(Please contact This email address is being protected from spambots. You need JavaScript enabled to view it. for further information of the news.)
1. JX Nippon Oil & Energy (Major copper foil supplier in Japan) 2/28
Has decided to close the poly-silicon business for solar power generator because of serious price competition in the global market.
2. Moritex (Device manufacturer in Japan) 3/4
Has co-developed a new skin condition sensor “Triplesense” combining Near Field Communication technology provided by Dainippon Printing.
3. Toppan Printing (Major printing company in Japan) 3/5
Demonstrated a new 42” flexible signage panel using 16 panels of 10.7” e-paper provided by Plastic Logic in the UK.
4. Hitachi Appliances (Major consumer appliance supplier in Japan) 3/5
Has developed a new coating process for the organic EL light source. It makes light emission rates higher and process cost lower compared to the traditional vacuum evaporation method.
5. Konica Minolta (Major optical device supplier in Japan) 3/5
Has unveiled the new flexible light source with the organic EL technology. Both of thickness and weight are one tenth compared to the glass base products.
6. Innolux (Major display panel supplier in Taiwan) 3/12
Will be the number one display panel supplier for the cellular phones of Nokia with 30 to 35% share.
7. ASE (Major IC packaging house in Taiwan) 3/12
The revenue has been rebounding in March from the decline in February. A demand of flip chip packaging is leading the business.
8. AGC (Major glass material supplier in Japan) 3/11
Has agreed with Triton Microtechnologies in the U.S. to invest 2.1 million US$ for the new R&D project of thin glass interposer.
9. Alps Electric (Major device manufacturer in Japan) 3/12
Has developed a new tiny magnetic sensor (1.6 mm square LGA) for geomagnetism with wide dynamic range of +/-2.4mT.
10. Hitachi Cable (Major cable manufacturer in Japan) 3/14
Has agreed with Shindo Denshi to sell IC packaging material business including TAB and COF for the total restruction.
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