Taiwan

So far the semiconductor industry is outperforming most other manufacturing sectors. Semiconductor capital equipment shipments were up 23% globally in 2Q’20 vs. 2Q’19 and semiconductor chip 3/12 growth is still in positive territory. However there are signs of slowing.

2020 still looks to be a very difficult year. How we manage the pandemic, the global economy and international relations remain major challenges but there are glimmers of light near-term and a likely much brighter future in 2021 and 2022.

With all major global electronic equipment OEMs having now reported their third quarter financials, we estimate that combined equipment sales increased 0.4 percent in 3Q’19 versus 3Q’18 and 2 percent sequentially from the second versus the third quarter of this year.

Reports of 2Q’19 financials from all of the major OEMs in our 213 company global sample show that their electronic equipment sales declined 1.4 percent compared to the same quarter of last year.

The semiconductor industry felt more of a fourth-quarter slowdown than the end markets.  Semiconductor-related products are typically much more volatile than the electronic equipment markets they serve.

2Q’18 Electronic Supply Chain Growth Update Chart 1 is a preliminary estimate of global growth of the electronic supply chain by sector for 2Q’18 vs 2Q’17. Note the strong performance of semiconductors, SEMI capital equipment and passive components.  Chart 2 gives preliminary 2Q’18 world...

Forecast SummariesCharts 1 and 2 are the recent world growth forecasts for this year and next for GDP (World Bank), Electronic Equipment and Printed Wiring Boards (Custer Consulting Group), Semiconductors (SIA/WSTSI and new Semiconductor Capital Equipment (SEMI).  The semiconductor-related...