mobile | classic
Dataweek Electronics & Communications Technology Magazine

Follow us on:
Follow us on Facebook Share via Twitter Share via LinkedIn


Electronics Buyers' Guide

Electronics Manufacturing & Production Handbook 2019


From the editor’s desk
13 June 2018, News

After a severe downturn triggered by the global economic collapse a few years ago, the electronics industry has recovered to reach all-time highs. DMASS reported record European semiconductor sales figures of 2,28 billion Euros for the first quarter of 2018, an almost 7% year-on-year increase. Worldwide, semiconductor sales painted an even rosier picture, with the World Semiconductor Trade Statistics (WSTS) organisation having reported a 20% year-on-year increase for the same period, topping $111 billion.

It is quite possible that even more growth is on the horizon, as market research firm IC Insights announced recently that the top 15 semiconductor companies’ sales surged by 26% in the first quarter of 2018 compared to the first quarter of 2017, six points higher than the total worldwide semiconductor industry increase, while the big three memory suppliers – Samsung, SK Hynix and Micron – each registered greater than 40% year-over-year growth.

Speaking of Samsung, 2017 was the year it stole Intel’s mantle of the world’s leading semiconductor supplier in the second quarter of the year as well as in the full-year 2017 ranking – the first time Intel was knocked from its perch since 1993. This was a hard-earned victory for Samsung, as its capex figures show, and the company’s growth shows no signs of slowing down either. Although it says it still does not have a full-year capital spending forecast for 2018 it did say it will spend less in semiconductor capital outlays than it did in 2017, when it spent $24,2 billion. However, as of the first quarter of 2018, figures show its foot is still on the gas, as it spent $6,72 billion in capex for its semiconductor division in the first quarter of 2018, slightly higher than the average of the previous three quarters and almost four times the amount the company spent just two years earlier in the first quarter of 2016. Over the past four quarters, Samsung has spent a remarkable $26,6 billion in capital outlays for its semiconductor group.

Rampant global semiconductor sales led Gartner to increase its forecast for the market in 2018 from 4% to 7,5% which, if correct, would see it pass the $450 billion mark. Some new players might also be poised to enter the mix, as tech giants Apple, Google, Amazon and Facebook have all announced plans, or are rumoured to have plans, to design and build their own hardware chips in an effort to become increasingly self-reliant.

An unfortunate consequence of this strong market growth is the effect it is having on component lead times. The Electronic Components Industry Association (ECIA) recently issued a warning that lead times are escalating and there is a lack of stability. As the ECIA pointed out, there is no one cause, as it is a complicated situation exacerbated by shifts in market demand, allocated capacities, investment constraints, de-emphasised older form factors and regional supply shortages.

These long lead times are affecting all component categories, with industry average lead times for interconnect and electromechanical components sitting at around 67 days, passives at 85 days and semiconductors also at roughly 85 days. Digging into these categories, resistors (more than 125 days), capacitors (almost 110 days) and discrete semiconductors (roughly 130 days) are the worst offenders, but overall lead times for almost every component type are becoming longer, and industry experts are warning that the problem will get worse before it gets better.

There is not much electronics manufacturers can do about shortages upstream, but it never hurts to plan ahead.

Brett van den Bosch


Supplied By: Technews Publishing
Tel: +27 11 543 5800
Fax: +27 11 787 8052
  Share on Facebook Share via Twitter Share via LinkedIn    

Further reading:

  • Electronics news digest
    29 May 2019, News
    South Africa • South Africa will soon join the World Economic Forum’s (WEF) Centre for the Fourth Industrial Revolution Network (C4IR Network) alongside China, India and Japan by launching an affiliate ...
  • From the editor’s desk: US-China trade war hits chip makers
    29 May 2019, Technews Publishing, News
    The escalating trade war between the US and China has the global economy on high alert, and unless things normalise soon it is going to have massive ramifications on many industries. Following US president ...
  • Otto Wireless scoops two new agencies
    29 May 2019, Otto Wireless, News
    Otto Wireless Solutions has recently been appointed as the official distributor for two overseas manufacturers of RF and microwave components: Taiwanese microwave ceramic components designer and manufacturer, ...
  • Actum acquires Band-It business in South Africa
    29 May 2019, Actum Electronics, News
    The Actum Group has acquired Banding and Identification Solutions Africa (BISA), the leading distributor of Band-It clamping and fastening products in South Africa. The transaction, which was finalised ...
  • CSIR outlines new strategy
    29 May 2019, News
    The CSIR (Council for Scientific and Industrial Research) has revealed details about its new strategic direction, built around the vision of accelerating socioeconomic prosperity in South Africa through ...
  • The ubiquity of IoT in design
    29 May 2019, News
    The Internet of Things (IoT) is a wave that impacts all ‘verticals’ and ‘horizontals’ of the digital evolution, and organisations who deliver design and manufacturing services in this hazy matrix are ...
  • Otto Wireless presents the T-Link Experience
    29 May 2019, Otto Wireless, News
    On 20 June, Otto Wireless Solutions, together with TP-Link, will be hosting a half-day product showcase conference at Riversands conference venue. The event will be an intense half-day session, commencing ...
  • Electronics news digest
    30 April 2019, News
    South Africa • The CSIR (Council for Scientific and Industrial Research) – which will turn 75 in 2020 – has plotted a new strategic direction built around the vision of accelerating socioeconomic prosperity ...
  • From the editor’s desk: The unseen role of component distributors
    30 April 2019, Technews Publishing, News
    FAEs play an essential role in bridging the engineering world where things are designed and made, and the business world where big decisions are taken and money changes hands.
  • Is the supply chain broken?
    30 April 2019, Electrocomp, Diel Met Systems, ExecuKit, NuVision Electronics, RF Design, This Week's Editor's Pick, News
    The world’s insatiable demand for electronic goods has created a monster: a supply chain that spans the globe and relies on the entirety of our collective knowledge and experience in the pursuit of industry.
  • Win an AVR-IoT WG development board
    30 April 2019, News
    Dataweek readers are being offered the opportunity to win a Microchip Technology AVR-IoT WG development board (AC164160) to make it easy to deploy IoT devices to Google Cloud IoT Core’s artificial intelligence ...
  • 4IRSA launches digital economy summit
    30 April 2019, News
    The launch of South Africa’s first ‘digital economy’ summit, endorsed by Cabinet, was announced at the Wits Tshimologong Digital Innovation Hub by the minister of telecommunications, Stella Ndabeni-Abrahams, ...

Technews Publishing (Pty) Ltd
1st Floor, Stabilitas House
265 Kent Ave, Randburg, 2194
South Africa
Publications by Technews
Dataweek Electronics & Communications Technology
Electronics Buyers’ Guide (EBG)

Hi-Tech Security Solutions
Hi-Tech Security Business Directory

Motion Control in Southern Africa
Motion Control Buyers’ Guide (MCBG)

South African Instrumentation & Control
South African Instrumentation & Control Buyers’ Guide (IBG)
Terms & conditions of use, including privacy policy
PAIA Manual


    Classic | Mobile

Copyright © Technews Publishing (Pty) Ltd. All rights reserved.