Worldwide Semiconductors Sales increased 8% y/y to $87 billion in 3Q'14 (Charts 1-5)

  • Worldwide sales of semiconductors reached $87 billion during the third quarter of 2014, an increase of 5.7 percent over the previous quarter and a jump of eight percent compared to the third quarter of 2013.
  • Third quarter sales outperformed the latest World Semiconductor Trade Statistics (WSTS) industry forecast.
  • Global sales for the month of September 2014 reached $29 billion, eight percent higher than the September 2013 total of $26.9 billion and 1.9 percent more than last month's total of $28.5 billion.

The Semiconductor Industry Association (SIA) announced that worldwide sales of semiconductors reached $87 billion during the third quarter of 2014, an increase of 5.7 percent over the previous quarter and a jump of eight percent compared to the third quarter of 2013. Third quarter sales outperformed the latest World Semiconductor Trade Statistics (WSTS) industry forecast. Global sales for the month of September 2014 reached $29 billion, 8 percent higher than the September 2013 total of $26.9 billion and 1.9 percent more than last month's total of $28.5 billion. All monthly sales numbers are compiled by WSTS and represent a three-month moving average.

 

"Through the third quarter of 2014, global semiconductor sales remain strong and well ahead of last year's pace," said Brian Toohey, president and CEO, Semiconductor Industry Association. "The industry has now posted seven consecutive months of sequential monthly growth, and year-to-year growth has been strong across nearly all semiconductor product categories, with DRAM and analog leading the way."

Source: www.sia-online.org

Global Manufacturing Purchasing Managers' Index held steady at 52.2 in October (Charts 6-7)

JPMorgan's Global Manufacturing Purchasing Managers' Index (PMI) held steady at 52.2 in October.

"The global PMI continues to signal 3-4 percent annualized gains in manufacturing output as we head toward year-end," said David Hensley, a director at JPMorgan.

"While the new orders data suggest that demand is generally holding up well, this good news is countered to some degree by indications in the survey that finished goods inventory is increasing rapidly."

Source: www.markiteconomics.com
  www.jpmorgan.com

Top 20 Semiconductor Suppliers in 2014 (Chart 8)

TSMC, MediaTek, and SK Hynix's sales are each expected to jump by >20% this year.

IC Insights' November Update to The 2014 McClean Report will show a forecast ranking of the 2014 top 25 semiconductor suppliers with the companies' sales broken down on a quarterly basis. A preview of the forecast for the top 20 companies' total 2014 sales results is presented in Chart 8. The top 20 worldwide semiconductor (IC and O S D—optoelectronic, sensor, and discrete) sales ranking for 2014 includes eight suppliers headquartered in the U.S., three in Japan, three in Europe, three in Taiwan, two in South Korea, and one in Singapore, a relatively broad representation of geographic regions.

This year's top-20 ranking includes two pure-play foundries (TSMC and UMC) and six fabless companies. Pure-play IC foundry GlobalFoundries is forecast to be replaced in this year's top 20 ranking by fabless IC supplier Nvidia. It is interesting to note that the top four semiconductor suppliers all have different business models. Intel is essentially a pure-play IDM, Samsung a vertically integrated IC supplier, TSMC a pure-play foundry, and Qualcomm a fabless company.

IC foundries are included in the top 20 ranking because IC Insights has always viewed the ranking as a top supplier list, not as a market share ranking, and realizes that in some cases semiconductor sales are double counted. With many of our clients being vendors to the semiconductor industry (supplying equipment, chemicals, gases, etc.), excluding large IC manufacturers like the foundries would leave significant "holes" in the list of top semiconductor suppliers. Foundries and fabless companies are clearly identified in Figure 1. In the April update to The McClean Report, market share rankings of IC suppliers by product type were presented and foundries were excluded from these listings.

As shown, it is expected to require total semiconductor sales of over $4.2 billion to make the 2014 top 20 ranking. In total, the top 20 semiconductor companies' sales are forecast to increase by 9% this year as compared to 2013. However, when excluding the two pure-play foundries (TSMC and UMC) from the ranking, the top "18" semiconductor companies' sales are forecast to increase by 8% this year, the same rate as IC Insights' current forecast for total 2014 worldwide semiconductor market growth

Outside of the top six spots, there are numerous changes expected within the 2014 top-20 semiconductor supplier ranking. In fact, of the 14 companies ranked 7th through 20th, 10 of them are forecast to change positions in 2014 as compared with 2013 (with NXP expected to jump up two spots).

Source: www.icinsights.com

U.S. September Electronic Equipment Shipments, Orders and Inventories

The September "Factory Orders" report providing additional beyond the previous "Durable Goods" report regarding the domestic electronics sector. Here are a few highlights:

  • The only electronic equipment order sectors that grew sequentially from August to September were military electronics and very military "weighted" search & navigation equipment (Chart 9).
  • Inventory levels varied by electronic equipment sector with computer and search and navigation increasing (Chart 10).
  • Vehicle shipments were flat for both August and September (Chart 11).
  • Military equipment orders jumped significantly (Chart 12).
  • Electromedical, Measurement & Control Equipment declined in September but have been growing strongly since late 2012 (Chart 13).
  • Passive component orders and shipments increased very slightly from August (Chart 14).

Source: www.census.gov/indicator/www/m3/

Worldwide Workstation Shipments Expanded 7.6% y/y to 930,894 units in 3Q'14 (Chart 15)

According to the International Data Corporation (IDC) the certified workstation market continued to show growth momentum in 3Q'14. Worldwide shipments were up 7.6% year over year to 930,894 units, making this the sixth consecutive quarter of positive growth in a competitive market, dating back to the second quarter of 2013. The previous quarter (2Q'14) remains one of the fastest growing workstation quarters on record with double-digit growth of 12.0% and total shipments that were more than 9,000 units greater than 3Q'14.

Source: www.idc.com

Nikon, Canon lower target DSLR camera shipments for fiscal 2014

Nikon and Canon have downward adjusted target global DSLR camera shipments for fiscal year 2014 (April 2014-March 2015) from 5.05 million units to 4.9 million units and from seven million units to 6.5 million units, respectively, according to the companies.

In the third quarter of 2014, Nikon shipped 1.79 million consumer digital cameras globally, decreasing on year by near 29%, 1.08 million DSLR cameras, down nearly 22%, and 1.48 million DSLR lenses, down 22%.

Nikon, Canon: Adjusted global target shipments, fiscal 2014 (m units)

Company Consumer Digital Camera DSLR Camera Combined
Nikon 7.5 4.9 12.4
Canon 9.5 6.5 16.0

Source: Companies, compiled by Digitimes, November 2014

Source: www.digitimes.com

Walt D. Custer


Walt Custer

Walt Custer is an industry analyst focused on the global electronics industry. Prior to forming Custer Consulting Group he was Vice President of Marketing and Sales for Morton Electronic Materials, a global supplier of specialty chemicals and process equipment for the PCB industry.

Custer has been a member of the IPC trade organization since 1975 where he received both the President's and the Raymond E. Pritchard Hall of Fame Awards. He is currently a member of the IPC Executive Market & Technology Steering Committee. Custer is also a Director of the EIPC European PCB trade organization.

He authors regular “Market Outlook” columns for Global SMT & Packaging magazine, the Journal of the HKPCA and the TTI MarketEYE website.

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