Market Watch
EDITED by CHELSEY DRYSDALE
Components Creep Up

Trends in the US electronics equipment market (shipments only)

%CHANGE
DEC.
JAN.
FEB.
YTD%
Computers and electronics products
1.2
1.9
1.2
5.9
Computers
-2.1
2.5
3.8
-0.9
Storage devices
1.9
6.8
2.0
10.8
Other peripheral equipment
7.1
-3.7
6.5
-3.6
Nondefense communications equipment
-0.3
8.0
0.9
14.3
Defense communications equipment
1.3
6.0
-1.6
8.5
A/V equipment
-7.3
34.5
-8.2
50.3
Components1
0.9
2.8
2.4
14.2
Nondefense search and navigation equipment
0.3
1.0
-1.0
1.7
Defense search and navigation equipment
-0.1
0.8
1.2
1.6
Medical, measurement and control
1.9
-0.3
0.8
2.8
rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted.
Source: U.S. Department of Commerce Census Bureau, Apr. 4, 2022
PCB Design Software Sales Leap 14% YoY in Q4
MILPITAS, CA – Sales of printed circuit board and multichip module design software increased 13.9% to $333.7 million in the period ended Dec. 31, the ESD Alliance announced in April.

The four-quarter moving average for PCB and MCM, which compares the most recent four quarters to the prior four, rose 15.1%.

Overall electronic system design (ESD) revenue increased 14.4% to $3.47 billion. The four-quarter moving average rose 15.8%.

Companies tracked in the report employed 51,236 people globally in the quarter, up 5.7% year-over-year and 0.1% sequentially.

Computer-aided engineering revenue increased 11.2% to $1.06 billion, IC physical design and verification revenue decreased 2% to $625 million, semiconductor intellectual property revenue jumped 25% to $1.3 billion, and services revenue increased 43% to $131 million.

The Americas was the largest reporting region by revenue, up 21% to $1.58 billion. Europe, Middle East and Africa (EMEA) rose 5.5% to $482.5 million, Japan fell 2.4% to $223 million, and Asia Pacific rose 14% to $1.19 billion.

Global Semi Equipment Sales Surge 44% in 2021
MILPITAS, CA – Worldwide sales of semiconductor manufacturing equipment in 2021 surged 44% year-over-year to an all-time record of $102.6 billion, says SEMI.

China claimed the largest market for semiconductor equipment for the second time with sales expanding 58% to $29.6 billion to mark the fourth consecutive year of growth. Korea, the second-largest equipment market, registered a sales increase of 55% to $25 billion, after showing strong growth in 2020. Taiwan logged 45% growth to $24.9 billion to claim the third position. Annual semiconductor equipment spending increased 23% in Europe and 17% in North America, which continues to recover from a contraction in 2020. Rest of world sales jumped 79% in 2021.

Hot Takes
  • Global semiconductor materials revenue grew 15.9% to $64.3 billion in 2021. (SEMI)
  • Total semiconductor sales will rise 11% in 2022, following a 25% increase in 2021 and an 11% increase in 2020. (IC Insights)
  • Worldwide semiconductor revenue totaled $595 billion in 2021, an increase of 26.3% from 2020. (Gartner)
  • The worldwide market for augmented reality and virtual reality (AR/VR) headsets grew 92% year-over-year in 2021, with shipments reaching 11.2 million units. (IDC)
  • Global fab equipment spending for frontend facilities is expected to jump 18% year-over-year to an all-time high of $107 billion in 2022. (SEMI)
  • Spending on compute and storage infrastructure products for cloud infrastructure, including dedicated and shared environments, increased 13.5% year-over-year in the fourth quarter of 2021 to $21.1 billion. (IDC)
  • The global PC monitor market continued its quarterly decline in the fourth quarter, with unit shipments shrinking 5.2% compared to the same quarter in 2020. (IDC)
  • By 2025, the market share of smartphones supporting Wi-Fi 6 and 6E is estimated to surpass 80%. (TrendForce)
  • Worldwide IC unit shipments will increase 9.2% this year to 427.7 billion units. (IC Insights)
  • Worldwide sales of semiconductor manufacturing equipment in 2021 surged 44% year-over-year to an all-time record of $102.6 billion. (SEMI)
  • Global shipments of smart home devices grew 11.7% in 2021 to more than 895 million. (IDC)
US Manufacturing Indices
NOV.
DEC.
JAN.
FEB.
MAR.
PMI
61.1
58.8
57.6
58.6
57.1
New orders
61.5
61.0
57.9
61.7
53.8
Production
61.5
59.4
57.8
58.5
54.5
Inventories
56.8
54.6
53.2
53.6
55.5
Customer inventories
25.1
31.7
33.0
31.8
34.1
Backlogs
61.9
62.8
56.4
65.0
60.0
Source: Institute for Supply Management, Apr. 1, 2022
Key Components
NOV.
DEC.
JAN.
FEB.
MAR.
EMS (North America)1
1.43
1.55
1.58
1.52
1.44
Semiconductors2
24.5%
28.3%
26.8%r
32.4%p
TBD
PCBs3 (North America)
1.10
1.17
1.18
1.16
1.05
Computers/electronic products4
5.34
5.32
5.24r
5.17p
TBD
Sources: 1IPC, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, ppreliminary, rrevised