SAN FRANCISCO – Deutsche Bank remains optimistic that PC unit growth will accelerate through year-end.
The firm believes current expectations of 10 to 11% unit growth will trend up toward the company’s previous estimate of 15% year-over-year growth, the result of continued strength in emerging markets, consumer and the beginning stages of a corporate PC upgrade cycle in the second half of the year.
Inventory correction has been largely cleared and manufacturing trends are firming, says DB. A relatively benign PC pricing environment continues, the company adds.
Evidence of an accelerating PC demand trend is visible among Taiwanese manufacturers; Quanta Computer increased its forecast to 30 to 50% year-over-year growth up from 20 million units shipped last year.
More broadly, Asian PC demand is tracking to 10 to 12% year-over-year unit growth in the June quarter, with early indications suggesting 10 to 15% in the September quarter.
Overall, demand appears normal, the firm said, with a slow and steady ramp expected into the second half of the year.
Motherboard units accelerated in May to up 17% year-over-year. Notebook data have also remained strong, with Taiwan notebook units up 63% year-over-year in May, accelerating from 37% growth in April. Notebooks are expected to be up 41% in the second half of the year.
LCD pricing has strengthened recently, DB said. Overall LCD pricing is up 5% in May versus the first-quarter average.
Notebook and desktop pricing was relatively stable this quarter, with average ASPs for notebooks down 1%.
FRANKFURT - The printed circuit board (PCB) market in Germany grew 14% sequentially in March 2007, according to the VdL (Association of the Printed Circuit Board Industry) and the Electronic Components and Systems Group of the ZVEI.
Meanwhile, the PCB market for the first quarter of the year is at the same level as last year.
However, incoming orders slid by 9% compared to February, but VdL and ZVEI attribute this to the large orders in the first half of last year from Asia.The demand remains flat; however VdL and ZVEI are optimistic of the German PCB market this year due to the new lead-free requirements. Book-to-bill ratio was 0.85 in March and 1.0 for the first quarter of the year.
TAIPEI, Taiwan - According to sources, Unimicron Technology anticipates improved revenues in the thrid and firth quarters of 2007 as it adjusts product mix to increase high-end shipments.
Chairman Tzeng Tze-chang, at a recent investor conference said that 2006 was a year of extraordinary growth for the PCB industry and Unimicron is unlikely to see a repeat of 2006 performance in 2007. The chairman remains optimistic about 2007, saying Unimicron's growth will return to pre-2006 levels.
The company continues developing high-end products, including handset-use high-density interconnect (HDI) boards, and chip-scale package (CSP) substrates, Tzeng said. The chairman said the high-end product lines are helping improve the company's margins, which he predicts may hit a record in 2008.
SALO, Finland. The closure of the Salo plant, partnership talks in Asia and a delay in the start-up of the India plant where all announced on June 15, 2007 at 4:40 pm by Aspocomp in the following press release.
The statutory labor co determination negotiations that were launched in May concerning the personnel at Aspocomp Oy and Aspocomp Group Oyj were concluded today. As a result, it was decided that a total of 237 personnel, consisting of 183 non-salaried and 54 salaried employees, will be made redundant. Production at the Group's Salo plant will be closed down and employment of 215 personnel terminated. The aim is to shut down production by mid-July and implement the planned personnel reductions in 2007. Aspocomp intends to use part of the plant's production equipment in its facilities in China and India.
The negotiations concerned about 350 employees in Finland, excluding the personnel of the Oulu plant. After the personnel reductions, headcount in Finland will total 219 employees. Of those, 161 personnel work at the Oulu plant. Part of the Group's research and development will remain in Finland to serve the company's global customers. In addition, the Group will start product development in the premises of its Chinese plant this year.
The goal of the layoffs and the shutting down of the Salo plant is to reach annual savings in excess of EUR 10 million. Balance sheet write-offs and non-recurring costs resulting from the layoffs are estimated to total about EUR 20 million. Of this, write-off of the plant building accounts for about EUR 11 million. The shutting down of the plant is anticipated to decrease the Group's net sales for 2007 by about EUR 10 million and reduce loss before non-recurring items by about EUR 3 million.
The full-year 2007 result is expected to be markedly unprofitable. Aspocomp Group Oyj's liquidity is estimated to remain weak due to the negative result and a reduction in certain credit limits that the company previously had available. A larger than planned part of the net proceeds obtained from the rights offering is used for the company's working capital requirements. After closing down the Salo plant and excluding the effect of the plant project in India, the Group's profit from the continuing operations is expected to improve to the break-even level.
Negotiations on partnership in Asia, delay in the plant project in India Aspocomp has previously announced that it will be active in the industry's consolidation trend. The Group is presently negotiating on potential cooperation with strategic partners in order to accelerate its growth in Asia and to finance its planned investment program.
The possible choice for strategic partnership will affect the timing for the start-up of the plant in India. The Group will also continue negotiations with alternative financiers to the plant project. The duration of the partnership and financing negotiations cannot be estimated and the company cannot guarantee their outcome.
BANNOCKBURN, IL - IPC,Association Connecting Electronics Industries said today that rigid PCB shipments in North America are down 12.8 percent. Further the overall bookings are down 11.8 percent April 2007 versus April 2006. Year to date, rigid PCB shipments are down 9.9 percent and bookings are down 18.9 percent. Compared to March, rigid PCB shipments slipped 15.5 percent and rigid bookings were down 12.6 percent.
”The April slowdown is a seasonal pattern we see just about every year," said IPC President Denny McGuirk. "This year, however, the industry is also affected by a cooling economy. Overall PCB sales in the first four months of 2007 are running about nine percent below the same period in 2006, but the positive book-to-bill ratios are signs of near-term stability in the North American PCB industry."
While some feel the book-to-bill ratio indicates stability, the first quarter results, coupled with April's poor showing, may be a sign that further contraction is coming.
BANNOCKBURN, IL – IPC,Association Connecting Electronics Industries, announced the April findings from its monthly North American Printed Circuit Board Statistical Program.
Rigid PCB shipments are down 12.8% and bookings are down 11.8% in April 2007 from April 2006. Year to date, rigid PCB shipments are down 9.9% and bookings are down 18.9%. Compared to the previous month, rigid PCB shipments decreased 15.5% and rigid bookings decreased 12.6%. Yet, the book-to-bill ratio for the North American rigid PCB industry in April 2007 reached parity at 1.00, which is a sign of near-term stability.
