Supply chain solution blog

High-Brightness LEDs – A Strong Growth Area


One part of the electronics market that seems to be defying recent reports of a slowdown is the high-brightness LED market. Analysts at Technavio forecast that it will grow more than 7% by 2021. A key driver is the far lower energy requirements of LED lighting; it typically consumes 75% less energy than an incandescent bulb, and energy-efficiency certification programs are helping to promote this. Such energy savings save money and help organisation to reduce their carbon footprint. Another factor which is promoting the growth is reduction in manufacturing costs, bringing prices down. Key vendors are: Cree, GE Lighting, LG...

Are US/China Tariffs Impacting Electronics Manufacturing?


The background to the tariff war between the US and China is complex. Since July 2018 a series of tariffs have been levied by the US on a wide range of Chinese goods, and China has retaliated with its own tariffs. The tariffs were initiated by the Trump administration for political and economic reasons (such as opening parts of the Chinese market to American companies), but one key factor behind them was the concern about intellectual property (IP) theft in China. In general, the technology industry in the US supports IP protection and fair trade, though several trade bodies (such...

Semiconductor Intelligence forecasts a 10% fall in the Semi market in 2019

2018 ended with a poor quarter for semiconductor sales, 8.2% down on Q3 sales. The outlook for Q1 2019 looks even worse, with most major semiconductor companies expecting declines greater than 10%. Key factors driving the decline are weak end user demand for electronics devices, allied with inventory adjustments at manufacturers as they reposition production to cope with the lower demand. Part of the underlying reason for this decline is a slowdown in world GDP and major economy growth. The IMF expect world GDP growth to slow from 3.7% in 2018 to 3.5% in 2019; the impact...

ECIA Reports Global Passive Component Sales Increased by 25.2% in 2018

According to the Electronic Components Industry Association (ECIA), global passive sales (capacitors, inductors and resistors) improved by 25.2% last year in dollars, and by 16.7% in unit shipments, with an increase of 7.3% in average selling prices. 2018 saw unit sales reach 7.4 trillion, totalling 32.1 trillion dollars. Capacitor sales improved by 27.9% in dollars and 12.5% in units, with the average selling price increasing by 13.7%. Inductor sales improved by 5.4% in dollars and 4.6% in units, with average selling prices increasing by 0.8%. Resistor sales improved by...

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