1Q'14 Electronic Supply Chain Growth Update
With most (but not all) companies having reported their first quarter 2014 financials:
- Electronic equipment revenue increased 2.9% in 1Q'14 versus 1Q'13 but declined 12% sequentially from 4Q'13 (normal seasonality) (Chart 1).
- Most sectors of the supply chain experienced growth. Notable exceptions included military, business and office, medical, datacom and consumer electronics, large EMS companies and PCB process equipment (Chart 2).
Source: Custer Consulting Group based on company financial reports
April sales results were released for Taiwan TSE-listed companies, many of which manufacture in China:
- OEM April 2014 electronic equipment sales were up 1% compared to April 2013 but down 6.7% sequentially compared to March 2014 (Chart 3).
- ODM April 2014 sales were 1.4% above April 2013 but down 5.3% sequentially from March 2014 (Chart 4).
- Solar/photovoltaic sales continued to improve (Chart 5).
- PCB and CCL (laminate) sales increased sequentially (Chart 6).
- Custer Consulting Group's Asia PCB leading indicator points to short term weakness in Taiwan/China PCB growth (Chart 7).
Source: Custer Consulting Group based on financial reports of TSE-listed companies.
Eurostat just released its March 2014 results:
- Chart 8 summarizes 1Q'14 versus 1Q'13 growth for the European electronic supply chain.
- March Industrial production declined slightly for the EU27 and Europe's major countries (Chart 9).
- Electronic equipment shipments continued to increase but were below the March peak of last year (Chart 10).
- Motor vehicle (Chart 11) and aerospace (Chart 12) shipments improved.
- Instrument sales strengthened (Chart 13).
- Electronic assembly weakened (Chart 14) but components and boards (Chart 15) and wiring device (Chart 16) sales grew.
- Europe's PMI leading indicator points to continue PCB growth (Chart 17).
Source: Eurostat with Custer Consulting Group analysis
ZVEI Data for German, European and World Electronics Markets
The ZVEI trade organization representing the German speaking countries in Europe recently released the following market data with forecasts:
- The world electronic assembly market will grow from US$ 744 billion in 2013 to US$ 784 billion in 2014.
Chart 18 provides global shares for 2014 and Chart 19 gives regional share data for 2012 to 2014.
- German speaking countries' electronic assembly market will grow 4.5% in 2014. Chart 20 details the German assembly market by end use for 2012 to 2014.
- German speaking countries' printed circuit board market will grow 3.9% in 2014. Chart 21 details the German PCB market by end use for 2012 to 2014 and Chart 22 gives ZVEI's global PCB forecast by region.
- German market for semiconductors by end market for 2012-2014 is given in Chart 23.
South Korea's memory chip industry up 1.7% sequentially to US$9.3 billion) in 1Q'14
The production value of South Korea's memory chip industry edged up 1.7% sequentially to KRW9.92 trillion (US$9.3 billion) in the first quarter of 2014, driven by a sequential 20% growth in shipments of DRAM chips by SK Hynix in the quarter, according to Digitimes Research.
Meanwhile, contributions made by Samsung Electronics and SK Hynix to the industry's total production value in the first quarter also rebounded to the levels posted in the third quarter of 2013, Digitimes Research noted.
DRAM chips accounted for 69.8% of all memory chips produced in South Korea in the first quarter, the highest in the past three years and also representing a rise of 2.9pp from 66.9% a quarter earlier.
Korea's memory chipmakers are expected to see their sales increase significantly in the second quarter of 2014 as smartphone vendors have pulled in more orders for memory products for models to be released in the third quarter as well as for rising demand from the tablet sector.
Fabless Chip Companies Ranked by 2013 Sales (Charts 24 & 25)
The total fabless chip market was $77.9 billion in 2013, up by 8% from $72.1 billion in 2012.
There were 14 fabless chip companies with sales of more than $1 billion in 2013 the same as in 2012. In total, in 2013, the top 25 fabless IC suppliers represented 81% of total fabless IC company sales.
Automotive TFT LCD Panel Suppliers in 2013 (Chart 26)
Innolux Corporation passed former market leaders Japan Display and Sharp, to become the leading automotive TFT LCD panel supplier in 2013. According to the NPD DisplaySearch Innolux garnered 23% of the automotive TFT LCD market in 2013, followed by Japan Display (21%) and Sharp (18%).
“Like the more mature PC and TV panels, the automotive TFT LCD panel has evolved from a customized item to a commodity that is easier to mass produce, and Taiwan TFT LCD makers now have the edge in pricing and production capacity,” said Hiroshi Hayase, vice president of small/medium displays for NPD DisplaySearch.“Taiwan is also a leading supplier to the growing Chinese automotive market, which has helped Innolux Corporation grow.”
As electric and hybrid vehicles rise in popularity and on-screen navigation becomes standard on more new cars, the demand for multifunctional automotive TFT LCD monitors continues to grow. Total automotive TFT LCD shipments have nearly tripled in volume over the past five years. Demand for automotive TFT LCD screens is forecast to exceed 100 million units by 2017.
Global Power Supply Revenue in 2013 (Chart 27)
The global market for AC-DC and DC-DC power supplies increased only 2.4 percent in 2014, with most growth limited to specific markets, including mobile devices and LED lighting, according to IHS Technology. IHS attributes the shifts in the rankings to limited growth in specific markets.
The top 10 vendors in 2013 accounted for 53 percent of total global power supply revenue of $20.7 billion. In 2012, the top 10 had a nearly equivalent share of 52%, out of total industry revenue of $20.1 billion.
Global White-box Tablet Shipments decreased 27.4% q/q and 2.4% y/y in 1Q'14 to 20.4 million white-box tablets in 1Q'14
There were 20.4 million white-box tablets shipped globally in the first quarter of 2014, decreasing by 27.4% on quarter and by 2.4% on year, according to Digitimes Research.
The decrease in shipments was mainly because most white-box vendors are based in China and there were fewer working days in the first quarter due to the Lunar New Year holidays, Digitimes Research pointed out.
Due to strong demand in emerging markets including India, Indonesia, Thailand, Russia and Eastern Europe, global white-box tablet shipments in the second quarter of 2014 will increase 14.2% on quarter and 45.6% on year to 23.3 million units.
Worldwide Branded Tablets Shipments were 41 Million Units in 1Q'14; Apple and Samsung combined had 71% Market Share
Apple and Samsung combined for 71% of the 41.3 million branded tablets in 1Q'14, according to early estimates from ABI Research.
The first three months of the year remain a seasonal low-point for tablets as with other computing and CE markets. The top three reporting tablet vendors for 1Q'14 were:
|*includes Google Nexus 7 shipments|
U.S. Industrial Production Drops 0.6% in April (Chart 28)
The U.S. Federal Reserve said industrial production fell 0.6% in April following an upwardly revised 0.9% increase in March.