EL SEGUNDO, CA — Surprising fourth-quarter weakness in the
memory chip market took the wind out of the sails of the global semiconductor
market, causing 2007 growth to fall short of expectations, according to
Global semiconductor market revenue grew 3.3% in
2007, iSuppli says, lower than the firm's 4.1% estimate in November.
the quarter, semi revenues fell 0.5%, but were up 2.4% excluding
Worldwide DRAM revenue fell 19.1% sequentially in the fourth
quarter, below the November estimate of a 4.7% drop. NAND flash revenue declined
3.9%. Overall, memory chip revenue fell 11% sequentially.
“This was a
complete role reversal for memory semiconductors compared to 2006,” said Dale
Ford, senior vice president, market intelligence, for iSuppli. “During the
second half of 2006, memory IC revenues helped to prop up the growth of the
overall semiconductor industry. In 2007, the poor results for memory chips
restrained overall market growth.”
products and ASICs enjoyed the strongest performance of all semiconductor
segments in 2007 with growth of 12.9%. Sony and Toshiba were the
key drivers of growth in this segment due to sales of semiconductors for the PS3
game console. Optical semiconductors were up 7.4%, and discretes grew 4.2%.
Overall, microprocessor revenue grew 2.1%.
SHANGHAI -- As first reported by Circuits Assembly, IPCand Messe Munchen International
have inked a deal under which the two groups will cooperate on an
assembly trade show China. No financial terms were disclosed. The
announcement was made yesterday by MMI managing director Klaus Dittrich.
The show, Electronica and Productronica China 2009, will be co-located
next year with the CPCA Show and Semicon China at the Shanghai
International Exhibition Center in Pudong.
The four shows expect to attract 3,000 exhibitors across 130,000 sq.
ft. of display space and draw 100,000 attendees. In a press
conference, Ditrich said, "We are sure the new partnership secures the
creation of an ideal platform for the SMT industry in China. He
described the deal as involving "joint marketing in China and the rest
of the world."
Promotional literature available at Productronica China this week
claimed the new colocated event would be "the biggest and first SMT
assembly show in China" - ignoring several long-existing Nepcon shows.
The co-located event will bring certain changes. For one, the cost
structure will be roughly 50% of current CPCA rates, which might not
sit well with bigger companies. Other changes include a lottery for
booth space. IPC is supporting the event and providing advertising in
return for a fee.
The Shanghai area is host to numerous electronics assembly trade shows.
In addition, several other area shows target the bare board fabrication
market. The local market is attractive to trade show producers for its
vast number of manufacturing facilities, but is highly contested, and
some domestic trade groups have historically disputed the rights of
others to compete in the local market. However, MMI, which produces the
highly successful Productronica and Electronica shows, opened a large
facility in the Shanghai suburb of Pudong earlier this decade.
Nepcon China, produced by MMI competitor Reed, takes place each spring
as well. However, the Everbright Convention Center, the current show
location, is considered undesirable for heavy equipment shows, as
exhibitors are spread out across two buildings, one of which is three
stories high, and the location has been plagued by power and logistical
SAN JOSE, CA - North American-based manufacturers of semiconductor equipment posted $1.23 billion in orders in February 2008 and a book-to-bill ratio of 0.93, according to a report published by Semiconductor Equipment and Manufacurers International (SEMI). The report shows a book-to-bill of 0.93, meaning that $93 worth of orders were received for every $100 of product billed for the month. A book-to-bill ratio of less than 1.0 indicates a decreasing trend in sales.
The bookings figure is about 8% greater than the January 2008 level of $1.14 billion, but 12% less than the $1.4 billion in orders posted in February 2007.
The three-month average of February 2008 worldwide billings was $1.32 billion. This figure is about 3% greater than the final January 2008 level of $1.28 billion, but about 8% less than the February 2007 billings level of $1.42 billion.
"The three month average for North American bookings and billings improved slightly in February, however they remain at levels below those reported last year," said Stanley T. Myers, president and CEO of SEMI. “Though current inventory and utilization rates are at healthy levels, device manufacturers are being conservative in their Capex spending."
The SEMI book-to-bill is a ratio of three-month moving average of worldwide bookings and billings for North American-based semiconductor equipment manufacturers.
As a part of the Economic Stimulus Act of 2008 that was signed into law
on February 13 by President Bush, two provisions provide
significant benefit to manufacturing companies.
The new law nearly doubles the amount of deductible Code Sec. 179
expensing for 2008 to $250,000, and increases the threshold for
reducing the deduction to $800,000. It applies to property purchased
and put into service in the tax year beginning in 2008. This would benefit small businesses that are purchasing equipment.
The Act also provides a temporary bonus depreciation aimed at encouraging
business investment. Property must be eligible for the modified
accelerated cost recovery system, with a depreciation of 20 years or
less, and must be purchased and placed in service during 2008. The new
law provides taxpayers a 50% first year bonus depreciation of the
adjusted basis of the property.