Market Watch
EDITED by CHELSEY DRYSDALE
Hot Takes
  • Global virtual reality headset shipments jumped 242% during the first quarter compared to the same period last year. (IDC)
  • First quarter cross-strait Taiwanese PCB output totaled NT$209 billion (US$7.02 billion), up 20.6% year-over-year and a new quarterly high. (TPCA)
  • Global server shipments are forecast to grow 6.5% sequentially this quarter, with full-year growth of 5%. (TrendForce)
  • Global fab equipment spending for front-end facilities is expected to increase 20% year-over-year to an all-time high of $109 billion in 2022, marking a third consecutive year of growth following a 42% surge in 2021. (SEMI)
  • Fabless suppliers hold a record 34.8% share of global IC sales. (IC Insights)
  • The global EDA tools market will reach $28.8 billion by 2031, growing 9.6% annually from 2021 through 2031. (Research and Markets)
  • The electronic adhesives market is poised to grow $1.43 billion in the 2022-2026 period, accelerating at a CAGR of 4.73%. (Research and Markets)
  • Worldwide sales of wearable medical devices are expected to grow to $22.4 billion in 2022, up 22% from 2021. (Research and Markets)
  • Worldwide PC shipments are on pace to decline 9.5% in 2022. (Gartner)
  • Total microprocessor sales are expected to rise nearly 12% to a record-high $114.8 billion, thanks to higher average selling prices. (IC Insights)
  • Total EDA revenue in the first quarter totaled $2.04 billion, up 5% year-over-year. (ESDA)
  • Worldwide shipments of traditional PCs declined 15.3% year-over-year to 71.3 million units in the second quarter. (IDC)
  • Global PC shipments totaled 72 million units in the second quarter, a 12.6% drop from 2021. (Gartner)
Key Components
JAN.
FEB.
MAR.
APR.
MAY.
EMS (North America)1
1.58
1.52
1.44
1.36
1.35
Semiconductors2
26.8%
26.2%
23%
21.1%r
18%p
PCBs3 (North America)
1.18
1.16
1.05
1.03
1.03
Computers/electronic products4
6.46
6.38
6.45
6.38r
6.37p
Sources: 1IPC, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, ppreliminary, rrevised
N. America Component Sales Sentiment Swings Negative
ATLANTA – After a run of two years of overall positive sales sentiment and expectation for electronic components, the June Electronic Component Sales Trend Survey dropped below the benchmark level of 100, indicating negative sales growth, according to ECIA.

The index for all major component categories measured below 100, driving an overall average sales sentiment of 97.5 in June. Similarly, the end-market sentiment registered at 93.2, in line with forecast expectations in the prior month’s survey.

“Two years ago, when the index dropped below 100 in July 2020, the index saw a strong rebound above 100 in the following month of August,” said Dale Ford, chief analyst, ECIA. “However, that rebound came during a period of strong economic growth and overall consumer and industry optimism. The current economic environment is a polar opposite from two years ago. While it can be hoped the June results only reflect seasonal market behavior, other economic and industry indicators and expectations dim that prospect.”

Steady Storage

Trends in the US electronics equipment market (shipments only)

%CHANGE
MAR.
APR.
MAY
YTD%
Computers and electronics products
-0.3
0.6
0.3
4.8
Computers
-2.9
1.1
-0.5
-2.7
Storage devices
-0.7
6.6
0.5
12.5
Other peripheral equipment
7.2
-11.6
-2.0
2.7
Nondefense communications equipment
-3.1
1.5
0.8
9.7
Defense communications equipment
-3.3
5.9
-4.2
9.6
A/V equipment
5.0
-1.9
-8.6
40.5
Components1
-0.1
0.5
2.6
14.8
Nondefense search and navigation equipment
-1.8
3.6
-2.5
1.5
Defense search and navigation equipment
-1.7
0.4
0.9
0.3
Medical, measurement and control
0.3
1.2
-0.3
1.4
rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted.
Source: U.S. Department of Commerce Census Bureau, July 5, 2022
US Manufacturing Indices
FEB.
MAR.
APR.
MAY
JUN.
PMI
58.6
57.1
55.4
56.1
53.0
New orders
61.7
53.8
53.5
55.1
49.2
Production
58.5
54.5
53.6
54.2
54.9
Inventories
53.6
55.5
51.6
55.9
56.0
Customer inventories
31.8
34.1
37.1
32.7
35.2
Backlogs
65.0
60.0
56.0
58.7
53.2
Source: Institute for Supply Management, July 1, 2022