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Strong Growth for Electronics Supply Chain in 2017
October 30, 2017 | SEMIEstimated reading time: Less than a minute
Through early autumn, growth remains strong for most sectors of the global electronic supply chain.
September’s Purchasing Managers Indices, which are excellent leading indicators, were in expansion territory (PMI>50) for key electronic producing countries/regions (Chart 1). The U.S. and Europe stood out with especially robust PMIs but all key electronics producing countries can expect at least near-term manufacturing expansions.
Electronic equipment output is increasing due to both normal seasonality and organic growth (Chart 2). China/Taiwan experienced a strong September in electronic equipment sales and Europe is enjoying excellent end market growth.
Taiwan chip foundries have recently seen a general rebound in output (Chart 3). They typically “lead” global semiconductor shipments by a few months so their modest September data dip predicts a small (seasonally normal) decline in chip shipments in the next few months.
Semiconductor shipments are at record levels, driven by memory, and semiconductor equipment sales have surged in many regions but especially in S. Korea.
Although the normal, consumer electronics driven autumn “busy season” will soon ebb, 2017 has enjoyed the best electronics industry growth in many years.
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