Electronics Industry Update

-- Semiconductor International, 9/1/1999

Worldwide Sales of Semiconductor Devices Historical Data: World Semiconductor Trade Statistics (WSTS) Forecast: Semiconductor International	Production Trends & Forecasts of Electronic Components Historical Data: Federal Reserve Board Forecast: Semiconductor International
Production Trends & Forecasts of Computers & Peripheral Equipment Historical Data: Federal Reserve Board Forecast: Semiconductor International	Production Trends & Forecasts of Consumer Electronics Historical Data: Federal Reserve Board Forecast: Semiconductor International

Estimates from the Federal Reserve Board's industrial production series show June computer industry output rose 2.8% above May. For the 12 months ending in June, output growth was 47.1%.

Output from the nation's communications equipment industry in May showed a strong 3.9% increase over April, and was 9.5% above May 1998.

In the electronic components industry group, industrial production rose 3.2% between April and May. In the three months prior to March, monthly output grew at an average of only 0.8%.

The dollar value of worldwide semiconductor sales in May was up 3.6% from April and 18.6% from May 1998. January-May chip sales grew 9.3% from the same 1998 period. Unit sales volume rose 6.1% from April to May. Worldwide unit sales for the first five months of 1999 were 4.2% ahead of the 1998 pace.

DRAM prices have fallen for three consecutive months. The average price of a DRAM memory chip in May was $5.46, 50.1% above the May 1998 average but 14.5% lower than in February 1999. In the same period, the dollar value of microprocessor sales increased 22.9%.  

New Pure-Play Foundry Capacity by Year

Key points:

• Asia-Pacific will be home to more than 40% of new capacity added in 1999 and almost 80% in 2000.
• Most of this new capacity will be foundry capacity.
• The North American region accounted for 36% of new capacity in 1997 and 26% in 1998.
• North America's share of new capacity will fall below 10% next year, but will rise to 30% in 2001.
• Most North American companies are upgrading existing capacity rather than building new capacity.
• New fab capacity in 1999 will be the lowest since 1994. In 2000 it will be the lowest since 1993.
• In 2001, new fab capacity will exceed the previous year's additions for the first time since 1997.

Strategic Marketing Associates is a market research company whose focus in on the fab. For information about capital spending and new fab projects, contact Strategic Marketing Associates at 831-464-2669