Electronic Industry Update
-- Semiconductor International, 1/1/1999
| Worldwide Sales of Semiconductor Devices  Historical Data: WSTS |
Production Trends, Forecasts of Computers  Historical Data: Federal Reserve Board Forecast: Cahners Economics |
| Production Trends of Electronic Components  Historical Data: Federal Reserve Board Forecast: Cahners Economics |
Production Trends, Forecasts of Consumer Electronics  Historical Data: Federal Reserve Board Forecast: Cahners Economics |
October computer industry output was 2.8% ahead of
September. For the 12 months ending in October, cumulative computer/office
equipment output grew 43.8%. Through October, SIC 357 production ran 45.0%
ahead of 1997. SIC 357 output rose 35.6% 1996-1997. Consumer electronics
production fell 3.5% August-September. Competition from ever-cheaper Asian
imports caused the industry's problems in 1998. U.S. production in SIC 365
fell during seven of the first nine months of 1998. For the 12 months
ending in September, U.S. consumer electronics production plunged 23.5%.
September industry output was 40.6% lower than September 1997. Industrial
production in the electronic components industry rose 0.9%
August-September. Despite worldwide semiconductor price decline, U.S.
unit-production trends for electronic components held up in 1998. Through
September, SIC 367 production ran 27.2% ahead of 1997. Production data
showed slowing in market growth. During September, SIC 367 output was
20.1% above September 1997; in January 1998 the industry enjoyed a
year-over-year growth rate of almost 40%. 
New Fabs Starts by
Type of Fab Valued by Investment Cost
Key points:
- New fab starts fell from $30.9 billion in 1995 to $17.1 billion in 1998.
- New foundry fab starts increased from 1995 through 1997 but fell in 1998.
- Strength in foundry fab starts through 1997 has led to overcapacity.
- DRAM fab starts crashed from a level of $17 billion in 1995 to $5.4 billion in 1998.
- Fall off in DRAM fab starts has led to price stability.
- Total DRAM equipment and facilities spending will increase by as much as 10% in 1999.
Strategic Marketing Associates is a market research company whose focus is on the fab. For information about capital spending and new fab projects, contact Strategic Marketing Associates at 831-464-2669.
