Editor’s Note: This is the first of two articles examining the impact of tariffs — positive and negative–on the electronics industry. It feels like the U.S.-China tariff-and-trade war has been waging so long we’ve forgotten how it started, but its goals remain the same. The Trump administration is pressuring China to change its behavior toward…
Anyone familiar with Foxconn/Hon Hai Precision Industry retained a healthy dose of skepticism when Foxconn announced it would build advanced liquid-crystal displays (LCDs) in Wisconsin. To put it charitably, Foxconn is not renowned for honoring its contracts. More than 20 years ago, when I was working for Electronic Business magazine, one of our editors spent…
Sixty percent of companies make offshore-sourcing decisions based on rudimentary metrics, such as wage rate, ex-works price or landed cost, often resulting in a 15 to 30 percent understatement of actual offshoring costs. Inclusion of all relevant factors—overhead, balance sheet, risks, corporate strategy and other external and internal business considerations—provides a better determination of the…
U.S. factory activity in December plunged to a four-year low as new orders, production and employment declined sharply from November 2018 levels. Even the electronics industry, which struggled to meet component demand for the entirety of last year, abruptly hit the brakes. “Growth appears to have stopped,” a computer and electronics executive told the Institute for…
Both DRAM and NAND flash prices are expected to decline in the 10-percent range in the first quarter (Q1) of 2019. DRAMeXchange, a division of TrendForce, forecasts DRAM prices will drop by 10 percent or higher in Q1 while NAND flash prices will fall by nearly 10 percent. This is a steeper slide than last…
TTI, Inc. a leading specialty distributor of electronic components, has launched a new web microsite to update customers on the company’s positions concerning the Section 301 China Tariffs mandated by Office of the U.S. Trade Representative. These tariffs on products manufactured in China and imported into the United States have been absorbed by TTI on behalf…
As the electronics industry plows through calendar Q4, murmurs of uncertainty around 2019 are surfacing. Analysts say there’s a possibility that demand for electronic components will cool in 2019, and tariffs continue to fuel uncertainty throughout the electronics supply chain. “Semiconductor memory ASPs are going to fall. Semiconductor sales are going to decline. The U.S…
The nation’s leading factory index dropped to its lowest level in six months as manufacturers try to manage through trade tensions, transportation shortages and a slowdown in orders. The Institute for Supply Management’s PMI decreased 2.1 percentage points to 57.7 percent in October, its lowest level since April. The PMI has declined for two consecutive…
IC Insights’ September Update to The McClean Report shows that as a result of a 51% forecasted increase in the China pure-play foundry market this year, China’s total share of the 2018 pure-play foundry market is expected to jump by five percentage points to 19%, exceeding the share held by the rest of the Asia-Pacific…
Electronic component supplies are only going to get tighter as 2018 approaches calendar Q4. Demand remains at or above normal levels in the automotive, IoT, and industrial markets; capacity ramp-up may not bear fruit until the end of the year or 2019; and tariffs are likely to unravel an already-stressed supply chain. Investment firms Morgan…