Global Electronics Outlook: More Positive Signs, but Recovery Timeline Still Uncertain

June “flash” PMIs were just released for select counties (chart 1). With the exception of Japan all PMIs rebounded although many still remained in contraction territory (PMI<50):Markit Economics’ USA PMI rose sharply from 39.8 to 49.6 (chart 2).Eurozone PMI also rebounded from 39.4 to 46.9 – indicating manufacturing contraction but at a slower rate (chart 3); according to Markit Economics (chart 4), “Eurozone economic downturn eased markedly for second successive month in June as lockdowns to prevent spread of COVID-19 were further relaxed. Manufacturing output continued to drop due to declining orders, but June saw continued strong improvement in business expectations for the year ahead. Persistent closure of non-essential business, hotels, restaurants, travel and tourism and other consumer-facing sectors, continued to be widely reported”Germany’s PMI improved to 44.6 indicating slower contraction (chart 5) and France moved back into manufacturing expansion at 52.1 (chart 6)Japan slipped further into contraction (chart 7)

Source: More Positive Signs, but Recovery Timeline Still Uncertain | Weekly Global Update for July 1, 2020 | TTI, Inc.

Global Electronics Update – June 12

The Global Manufacturing Purchasing Managers index rose from 39.6 in April to 42.4 in May (chart 1). While this was an improvement, keep in mind that a PMI <50 is still in contraction territory. The rate of manufacturing decline has slowed but manufacturing activity is far from  true growth (PMI=50).

Source: Challenging 2H 2020 Ahead for Electronics Industry | Weekly Global Update for June 10, 2020 | TTI, Inc.

U.S. lawmakers propose $22.8B in aid to semicon industry 

(Reuters) – A bipartisan group of U.S. lawmakers on Wednesday introduced a bill to provide more than $22.8 billion in aid for semiconductor manufacturers, aiming to spur the construction of chip factories in America amid a strategic technology rivalry with China.

Source: U.S. lawmakers propose $22.8 billion in aid to semiconductor industry – Reuters

Passive Components: Expect a “V-Shaped” Recovery 

The following GDP forecast by world region suggests a tough road ahead for the U.S. and European economies. Asian regions will grow out of the situation at a faster rate than other regions, but the overall outlook for near-term GDP is challenging (see Figure 1).

Source: Passive Components: Expect a “V-Shaped” Recovery | TTI, Inc.

Taiwan Passive Components Makers Report Impressive May Results

Passive components makers have reported significant sales results for May despite the long Labor Day holiday in China cutting work hours, with Yageo’s revenues of NT$4.486 billion (US$149.53 million) for the month rising 1% sequentially and almost 40% on year, according to industry sources.

Source: Taiwan Passive Components Makers Report Impressive May Results – Passive Components Blog

Global semiconductor sales down 1.2% in April 2020

Global semiconductor sales in April 2020 were USD 34.434 billion, up 6.1% versus the same month in 2019, says the European Semiconductor Industry Association (ESIA). Looking at monthly data, sales in April went down 1.2% versus the previous month, as the economic slow-down caused by the COVID-19 pandemic affects the semiconductor market.

Source: Evertiq – Global semiconductor sales down 1.2 percent in April 2020

Global Electronics Update for June 3, 2020

Most companies have now reported their first quarter financials, including all the large ones in our survey: When consolidated in U.S. dollars, world electronic equipment sales of 213 OEMs declined 6.7 percent in Q1 2020 versus Q1 2019 (chart 1) Chart 2 shows electronic sector growth in Q1 2020 versus Q1 2019. Compare these large first quarter 2020 declines to the prior quarter (chart 3)

Source: Growth Expected in Servers, Wearable Devices | Weekly Global Update for June 3, 2020 | TTI, Inc.