Taiwan March Data
After a sharp downturn in February, Taiwan-listed electronics companies recovered in March, although in some cases this “recovery” was rather meager.
- A composite of 101 Taiwan-listed OEMs reported a 21% sequential sales increase from February to March but were down 5% when comparing March 2013 to March 2012 (Chart 1).
- A group of Taiwan-listed ODMs also recovered from a sharp February sales drop (Chart 2) but reported an 11% sales decline in 1Q’13 compared to 1Q’12 (Chart 3).
- Wafer foundries (Chart 4), package and test companies (Chart 5) and passive component suppliers (Chart 6) all reported improved sales in March compared to February but did not exhibit good growth compared to the same period in 2012.
- Solar/photovoltaic suppliers appear to have moved past the bottom of their recent prolonged downturn (Chart 7).
- Printed circuit board (Chart 8) and rigid (CCL) laminate (Chart 9) sales improved modestly.
Source: Custer Consulting Group based on company financial reports
SEMI Reports 2012 Global Semiconductor Materials Sales of $47.1 Billion (Charts 10-12)
The global semiconductor materials market decreased two percent in 2012 compared to 2011 while worldwide semiconductor revenues declined three percent. Revenues of $47.11 mark the first decline in the semiconductor materials market in three years.
Total wafer fabrication materials and packaging materials were $23.38 billion and $23.74 billion, respectively. Comparable revenues for these segments in 2011 were $24.22 billion for wafer fabrication materials and $23.62 billion for packaging materials. 2012 is the first time packaging materials revenues exceeded wafer fabrication materials revenues. A substantial decline in silicon revenue contributed to the year-over-year decrease to the total semiconductor materials market.
For the third year in a row, Taiwan is the largest consumer of semiconductor materials with record spending of $10.32 billion due to its large foundry and advanced packaging base. Materials markets in China and South Korea also experienced increases in 2012, benefiting from strength in packaging materials. The materials market in Japan contracted seven percent, with markets also contracting in Europe, North America, and Rest of World. (The ROW region is defined as Singapore, Malaysia, Philippines, other areas of Southeast Asia and smaller global markets).
South Korea’s Impact on Electronics Industry
With the current strife on the Korean peninsula we have compiled some statistics on South Korea’s production or consumption of various electronics related products.
|% of World Total|
|Printed circuit board production||11.5% in 2011|
|NAND production||52% in 4Q’11 by Samsung & Hynix|
|DRAM Production||67% in 4Q’12 by Samsung & Hynix|
|Semiconductor materials consumption||16% in 2012|
|Semiconductor capital equipment purchases||25% in 2012|
|Electronic equipment production||4% in 2012|
|GDP||2% in 2012|
This of course does not include the neighboring countries that could be impacted.
Source: Custer Consulting Group
Global LED lighting market will grow 54% Year-Over-Year to US$25.4 billion in 2013 (Chart 13)
The global LED lighting market will be worth US$25.4 billion in 2013, representing 54% growth on the 2012 figure of US$16.5, while the LED lighting penetration rate will also rise to 18.6%, according to a new DIGITIMES Research Special Report titled "Global high-brightness LED market forecast."
The report describes how the luminous efficacy of LEDs continues to rise, with manufacturers likely to be well ahead of the U.S. Department of Energy's (DoE) development targets of 129 lm/W for warm white light LEDs and 164 lm/W for cold white light LEDs.
LED lighting product prices are likely to drop by 20-25% in 2013, as LED component performance/price ratios rise from 2012’s 500 lm/US$ to 1,000 lm/US$ in 2013.
Looking further ahead to 2015, the U.S. DoE targets are for LED component costs to drop 37% from 2013 levels, while 60W-equivalent LED bulb costs are to drop by 38% from 2013 levels by 2015. LED lighting prices would then be at a price point even more acceptable to general consumers.
Lighting policy in many countries is also critical to the development of LED lighting, and this effect has been most marked in the Asia region. For example, Japan now has the highest LED lighting market penetration rate of any region, with the rate set to rise to 73.8% by 2015; South Korea's Korea Association for Photonics Industry Development (KAPID) projects that the country's LED lighting industry will have an output value of US$7.8 billion by 2015, 5.6 times the figure for 2012; while China's LED lighting market is growing by 30% per year, which will give the country nearly one third of total global output value for LED lighting in 2015.
All of these factors will drive major growth in the LED lighting market, which will beat even the significant gains forecast over the last one to two years. "In addition to the rise of LED TV applications, LED lighting will begin to replace conventional lighting technology in the market. LED lighting will take 38.6% of the global lighting market by 2015," predicts Jessie Lin, author of the report. DIGITIMES Research in fact projects that the global LED lighting market will be worth US$44.2 billion by 2015.
Gaming Consoles Lead Global Connected TV Usage
Internet Connectivity Rates and Methods for Flat Panel TVs Vary by Country
With growing interest in streaming content, online gaming, and apps on TVs, households are increasingly finding ways to connect their TVs to the Internet. In several developed countries, game consoles have become the most popular way to make that connection.
According to the NPD DisplaySearch Quarterly Smart TV Usage Study, the way TVs are connected to the Internet varies depending on where consumers live in the world. The results of surveys of households in the U.S., Japan, China, France, Germany, Italy, and the UK found that 27% of flat panel TVs are connected to the Internet, either directly from smart TVs or via other connected devices.
In connected flat-panel-TV households across all countries surveyed, the devices most often used to connect TVs to the Internet are Sony Playstation, Nintendo Wii, Microsoft Xbox 360, and other gaming consoles (19%), followed by Roku, Apple TV,PPTV Live and other media center boxes (17%). Behavior varies by country: for example, in China connected flat-panel-TV households most often connect through media center boxes (23%); while in the UK the favored connection is via gaming consoles (20%).
“Despite an increase in the availability of TVs with internal connectivity options, consumers still primarily access online content using game consoles, media center boxes, and other devices connected to their existing TVs,” said Riddhi Patel, Research Director at NPD DisplaySearch. “As consumers become more comfortable using the connectivity features of smart TVs, and as the navigation and search capabilities on those devices become more intuitive and user friendly, we can expect to see more consumers accessing the Internet directly from smart TVs.”
On average, in the seven countries tracked by NPD DisplaySearch, just 10% of consumers rely on smart TVs to connect to the Internet. Usage of smart TVs has been limited by higher prices, the widespread availability of other devices, and the complexity of connecting smart TVs to home networks and the web.
“While the connected TV market is still ruled by game consoles and other external devices that connect to TVs, new options are beginning to emerge,” noted Patel. “For example, USB-based media center box options, which are replacing physical boxes, are gaining popularity in the UK and other countries, while in China, smart TV adoption is on the rise due to aggressive promotions by manufacturers.”