Year XXII n° 2 - 2011

News IDEA
federation

INTERNATIONAL DISTRIBUTION OF ELECTRONICS ASSOCIATION

China Electronics Distributor

Consorzio Tecnoimprese Scarl • Poste Italiane spa - Spedizione in Abbonamento Postale - D.L. 353/2003 (conv. In L. 27/02/2004 N.46) Art.1, comma 1, DCB Roma

May 2011

III Q1 2011 following a great

2010, good first quarter!
Alliance is established
V Stress testing the global key roles in the electronics industry chain.
electronic components The establishment of CEDA has far-
supply network....Again reaching significance in promoting
franchised distributors’ value-added
VI What’s going on Serving Chinese services, strengthening cooperation
after the earthquake Electronics Supply Chain between distributors and suppliers,
encouraging technical and service
VIII Solid State Lighting: a innovations and gaining support on
by Amy Wang
growing market in Italy Vice President
government incentive policies. Supported
China Outlook Consulting Inc. by government bodies and related industry
X Taking a breath amywang@china-outlook.com associations and major distributors in
FORTRONIC
electronics f o r u m
www.cedachina.org China, China Electronic Appliance
XII A decade of upheaval Corporation (CEAC), CNT Networks

O
enjoy
the electronic community

n March 4th 2011 China Electronics and China Outlook Consulting (COC)
XIV Wireless Fortronic Forum Distributor Alliance (CEDA) was have jointly organized the CEDA opening
in the UK established in Shenzhen, Guangdong luncheon that agreed the mission and tasks
Associazione Nazionale
Fornitori Elettronica
province, China. The funding members of the new alliance.
include global top distributors and top
ASSOCIATIONS International Distribution
Chinese local distributors, as well as some “Congratulations to CEDA. It’s a meaningful
of Electronics Association
component suppliers. industry gathering today. We hope to see
ADEC - South Africa
Association of Distributors As China occupies a key part in the world more service innovation in the distribution
of Electronic Components
electronics supply chain, and production- area through CEDA as this is a very
ARDEC - Russia INTERNATIONAL
ELECTRONICS
SUPPLIERS

Autonomous Register
of Distributors of Electronic Components
service industries which have been a important sector in the electronics supply
ASSODEL - Italy focus of the “China 12th Five-Year Plan”, chain.” said Shijing Diao, Deputy Director-
Associazione Nazionale Fornitori Elettronica electronics component distributors have General at Department of Information
CEDA - China
China Electronics Distributor Alliance

ECAANZ - Australia CEDA founding members

Electronic Components Association
Australia and New Zealand

ECSN - United Kingdom Consorzio

di attività e servizi
Electronic Components Supply Network per Associazioni
e gruppi d’imprese

ELCINA - India
Electronic Industries Association of India

FBDI - Germany
Fachverband der Bauelemente Distribution

FEDELEC - Tunisia
Tunisian Federation of Electric
and Electronic Industries

SE - Sweden
The Swedish Electronics Trade Associations

JEpIA - Japan
Japan Electronic Products Importers Association

NEDA - United States

National Electronic Distributors Association

SpDEI - France
Syndicat Professionnel de la Distribution
en Electronique Industrielle
MAY 2011

www.ideaelectronics.com I
 Fornitori Elettronica
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of Electronics Association
EID News
SEmICoNDuCtorS
• Texas Instruments and
INTERNATIONAL National Semiconductor have
ELECTRONICS
SUPPLIERS signed a definitive agreement
under which TI will acquire
National for $25 per share in an
all-cash transaction of about
$6.5 billion. The acquisition
combines two industry leaders
in analog semiconductors. The
combined sales team will be 10
times larger than National’s is
today, and the portfolio will be
exposed to more customers in
more markets.
• The Japanese earthquake has
resulted in the suspension
of one-quarter of the global
production of silicon wafers
for semiconductors, so IHS
iSuppli. Manufacturing
operations have stopped
at Shin-Etsu’s Shirakawa
Consorzio
facility. MEMC also stopped
di attività e servizi
manufacturing at its
per Associazioni
Utsonomiya plant. Together,
e gruppi d’imprese
these two facilities account for
25 percent of the global supply
of silicon wafer used to make
semiconductors.
DIStrIButIoN
• Following the tragic events in
Japan, EBV is closely monitoring
the effect on the supply chain,
manufacturing and logstic
from its franchise partners. On
its website there is a special
section with official updates
regulary on how its suppliers are
responding to the crisis.
• premier Farnell announced
that the technical team ay its
Global Technology Centre (GTC)
has developed a comprehensive
portfolio of vertical market
development application notes.
• RS Component has
announced the release of
DesignSpark pCB version
2, its free PCB design
softwarepackage. New features
include 3D visualisation of PCB
layouts, and increased library
management functionally.
Source: Electronics Industry Digest
II www.ideaelectronics.com
Technology Industry of China’s
Ministry of Industry and
Information Technology (MIIT).
Wenhai Chen, Vice President
of CEAC said, “The alliance will
bridge electronics distribution
industry and government
bodies so that we can leverage
more on building industry
rules and acquiring supporting
policies in future.” Although
electronics distributors have
been movers of innovation
in China, there are no similar
policies for the distribution
industry. In future, CEDA will
encourage focused services
to address the demand of
both international and local
distributors.
“The establishment
of CEDA was backed
by IDEA
” demand and establish strategic
“The significance of CEDA
enhances closer cooperation
between component
distributor and their suppliers,
which will improve distributors’
contribution on technical
and service innovation in
new market environment.”
Michael Liu, CEO at CNT
Networks said. Because China
electronics manufacturing
companies are widely spread
and emerging markets are
wide open, distributors have
great market space.
The changes make the role
of electronics component
distributors to be must-have
and increasingly important.
However, in China, there
has not been industrial
organization for the distribution
sector before. CEDA takes the
place and will be the contact
window with global distribution
industry. The establishment
of CEDA was backed by
International Distribution of
Electronics Association (IDEA)
and its worldwide members
such as ECSN and ECIA and
other distribution associations
which will enable resources to
drive development of CEDA.
“The alliance has a goal to
publish China distribution
statistics in co-operation with
mainstream distributors and
3rd-party research firms to
analyze the data and publish
industry reports. The task is
vital to distributor for their
operation optimization and
supply chain forecast.” Amy
Wang, Vice President of
COC and CNT Networks
addressed. The initiative of
setting up CEDA is to serve
the community and helping
members explore new market
partnership through using all
international resources and
government support. CEDA
will offer professional services
for distributors in business
transformation, business
development, IPO and
financing needs.
“We have paid close attention
to Chinese distributor
organization and are happy
to support its development
through sharing IDEA’s
resources. As China has been
the needful part of global
distribution value chain, we
expect cooperation with CEDA
in market research.”
Gary Kibblewhite, Chairman
of IDEA has promised since his
visit to China three years ago.
Adam Fletcher, Chairman
from ECSN/IDEA and Robin
Gray, President from ECIA
also help CEDA by sending
the message to their members
about the establishment of
CEDA and invite them to join
the first CEDA meeting.
CEDA hosted executives of
founding members as well
as government officials and
related industry associations in
Shenzhen. Thanks for founding
members among Arrow, Avnet,
WPG, Future Electronics,
Digi-Key, Mouser, element 14,
RS Components, Richardson
Electronics, Comtech,
SZCEAC, Techtronics,
Asiacom, Honestar, Shanghai
Linpo, Morusun, Letdo
Electronics, Jiangsu Sunlord,
CE-Power, Zetron, Alignment
and Interine.
“The significance of
CEDA enhances closer
cooperation between
component distributors
and their suppliers
”
The alliance was also
supported by electronics
component suppliers,
including FCI, Taiyo Yuden,
Shenzhen Sunlord, Micon and
SSMEC. “This is the party of
international distributors who
take roots in Chinese market.
It will influence Chinese
electronics distribution industry
and related supply chain
deeply”, Wenhai Chen said.
The CEDA organizers have
rich resources in electronics
industry community including
China Electronics Fairs,
the largest professional
electronics tradeshow in
China, www.cntronics.
com, www.52solutions.
com, database Internet
marketing and market research
capacities.
It will enable focused services
to CEDA members.

Q1 2011 following a great 2010
good first quarter!
by Gary Kibberwhite
www.ideaelectronics.com
O ur concerns that the first
quarter of 2011 would
see the recovery fading were
misplaced as it was really a very
good Q1!
Total sales for the quarter were
20% up on Q4 2010 and 26%
up on the same quarter last year.
In addition, even though there
are signs that booking are
waning a little, the total bookings
were still 11% up on Q4 2010
and 8% up on the same quarter
last year. Also all the individual
product areas performed well
with semis again outperforming
the other sectors with a sales
growth of 22% on Q4 2010 and
a super plus 29% on Q1 last
year.
EURO AREA & EU27 pRODUCTION - Local industry excluding construction
Source: Eurostat
UNEMpLOYMENT RATES IN MARCH 2011 - Seasonally adjusted
Source: Eurostat
“A stronger quarter
than we anticipated
” track for a market growth in 2011
Passives grew by 16% on Q4
and 21% on the same quarter
last year whilst emec grew 15%
on Q4 and 19% on the same
quarter in 2010. The only area for
concern is the bookings of semis
which dropped to 0.97:1.00
in Q1 and this made the total
components book:bill drop to
0.99:1.00. However, we must
bear in mind that the billings
growth in the quarter was higher
than expected!
So far there has been little
evidence of any corrections to
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INTERNATIONAL
ELECTRONICS
SUPPLIERS
the overall positive market trend. to shield the market from
It looks as though we are still on major problems until Japan’s
production is back to normal.
Consorzio
but we still have 3 quarter to go Let’s hope so anyway.
di attività e servizi
so who really knows! per Associazioni
Just toe remind
gruppi d’imprese
readers. The
“Germany billing IDEA statistics are taken from
growth in Q1 was actual bookings and billings
the greatest in returns made by a substantial
both Euro and % percentage of the electronic
” component distributors in
The component shortages Europe, including all the major
generated by the problems in distribution groups.
Japan do not appear to have
impacted the markets materially Their sales represent circa 70%
and it is looking as though the of the total European distribution
inventory buffer provided by the market so the trends shown are
distribution sector will continue truly representative.
Q1 2011 TOTAL COMpONENTS BOOKING, BILLING & BOOK - Bill ratio Graphic T1
For Germany, France, Italy, Uk, Sweden, Norway, Danmark & Finland
FORTRONIC
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Fornitori Elettronica
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www.ideaelectronics.com III
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Economic background on p.3, on a quarterly basis, the Q1 2011 EMECH COMpONENTS BOOKING, BILLING & BOOK - Bill ratio Graphic E1
Based on the latest information market is following the normal For Germany, France, Italy, Uk, Sweden, Norway, Danmark & Finland
from Eurostat, the euro “strong first quarter” trend
area seasonally-adjusted confirming that the recovery has
unemployment rate was 9.5%
INTERNATIONAL
not yet faltered. Book:bill was
in March 2011, which compares positive for all of 2010 but has
ELECTRONICS
SUPPLIERS

well with the US at 8.8% in the just tipped into the red in Q1 this
same month (see graphic p.3). year, but only just at 0.99:1.00 ! FORTRONIC
electronics f o r u m

The latest European Industrial enjoy

Quarterly sales by
the electronic community

production figures are for March

2011 and still show that growth product family
has been maintained even Each quarter we look at both
Associazione Nazionale

though there was a small drop in booking and billing trends by Fornitori Elettronica

March (see graphic p.3). both product and by market. www.ideaelectronics.com

International Distribution

Firstly product. Breaking the of Electronics Association

“The crisis in Japan product total into the main

elements, initially the largest:
Q1 2011 TOTAL COMpONENTS BOOKING TREND - Bill ratio Graphic T2

does not appear

INTERNATIONAL
ELECTRONICS
SUPPLIERS

semiconductors (see graphic

to have affected
S1).
us materially
” After six quarters of positive
Electronic component book:bill ratios, Q1 has dipped
salesConsorzio
in Q1: overview to 0.97:1.00 Clearly this is
FORTRONIC
Consorzio
di attività e servizi
per Associazioni

As youdican seeeon graphic T1 disappointing as a continued

electronics f o r u m

e gruppi d’imprese
attività servizi
per Associazioni
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e gruppi
Q1 2011 d’imprese BOOKING, BILLING & BOOK - Bill ratio
SEMICONDUCTOR Graphic S1
For Germany, France, Italy, Uk, Sweden, Norway, Danmark & Finland
Associazione Nazionale
Fornitori Elettronica

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International Distribution
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FORTRONIC
electronics f o r u m
strong book:bill would guarantee strongest level of bookings and
a continued billings growth but billings for 10 quarters (see
INTERNATIONAL
ELECTRONICS
SUPPLIERS

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one should not read a book:bill at graphic E1).

Associazione Nazionale
Fornitori Elettronica
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International Distribution
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0.97 as a sign of weakness, well
not yet! Particularly as the billings
Quarterly orders by
in the quarter were so strong.
geographic region
“Q1 2011 sales were The performance trends by
Consorzio
di attività e servizi
per Associazioni

20% up on Q4 2010
e gruppi d’imprese

Q1 2011 pASSIVE BOOKING, BILLING & BOOK - Bill ratio Graphic P1 country show more marked

For Germany, France, Italy, Uk, Sweden, Norway, Danmark & Finland
INTERNATIONAL
ELECTRONICS
SUPPLIERS
and 26% differences. The graphic T2
up on Q1 2010 above shows the bookings
” trends compared with the prior
Unlike semis where the book:bill quarter ( Q/Q-1) and the same
declined, in passives it quarter last year ( Q/QY-1).
continued to be positive and
FORTRONIC
Consorzio
di attività e servizi
recorded its best booking and Compared with Q1 prior year
electronics f o r u m

billing quarterly level for at least the German growth is greatest

per Associazioni
e gruppi d’imprese

12 quarters! (see graphic P1). in both Euro and % terms

enjoy
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highlighting the continuing

Emech & other components importance, and strength, of the
Associazione Nazionale
Fornitori Elettronica followed the same trend as German market. Nordic, Italy
passives this quarter with and France all experienced a
www.ideaelectronics.com
International Distribution
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IV www.ideaelectronics.com
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Stress testing the global Concerns have been expressed by many

individuals and organisations regarding the

electronic components
potential negative impact of the crisis
in Japan on the supply network and the
INTERNATIONAL

threat to the health of their workforce

supply network… Again

ELECTRONICS
SUPPLIERS

caused by exposure to radiation

by Adam Fletcher However UK and international
Chairman of IDEA and ECSN electronic components trade
www.ecsn-uk.org
associations together with
other industry analysts are well
positioned to effectively collate
and disseminate information from
a wide variety of sources including
member organisations across the
industry, and provide balanced
and accurate “signposting” to the
industry.
exposure to operators handling
shipments in transit, at the
distributor or direct customer
goods-in and material handling
points. The current advice from
the UK government - who are
presumably monitoring the
situation - is that the levels of
radioactive contamination on
shipments from Japan are well
within safe working limits and do
not pose a health threat. Given
introduced increased controls
on imports of feed and food
products from Japan, which may
be seen as indicative of mounting
concern although a review of
the websites of key international
freight forwarders failed to find any
reference to potential radiation
risk posed by goods of Japanese
origin.
pOTENTIAL SUppLY

L
et’s face it: we live in what the
author Marshall McLuhan
described in the 1960s as
a “Global Village”. Individuals
and organisations throughout
the developed world are highly
mutually dependent, despite the
large geographic divide. However,
as recent events have proven,
the complex interaction of global
economic trade and its associated
demand and supply networks can
be easily disrupted by natural or
man made disasters.
Our sympathies are with the
people of Japan following
the terrible combination of
earthquake, tsunami and nuclear
power plant crisis but the
economic impact of a disaster of
this magnitude to the world’s third
largest economy will affect almost
everyone in the “Global Village” in
one way or another.
The current situation is horribly
complex and constantly evolving.
No organisation can accurately
forecast the real impact of the
Japanese crisis until the overall
scenario is better understood.
RADIATION
Probably the greatest international
concerns are centred on the
outcome of efforts to successfully
contain radioactive materials at
the damaged Fukushima Daiichi
nuclear plant.
ECSN members are receiving
many requests for information
on the risks associated with
radioactive contamination,
particularly in the packaging
of goods shipped from Japan.
In the UK and Eire electronic
components market over 90%
of customers are supported
via manufacturer authorised
distributors, who receive the bulk
shipments of goods from the
manufacturer and then inspect,
store, retrieve and package
as appropriate for shipment
to their customers. The risk
to end-customer of receiving
any packaging exposed to
radioactivity during shipment is
therefore virtually non-existent.
There does however remain
a theoretical risk of higher
than normal levels of radiation
that HMRC is a large employer
and its employees in Custom
Sheds in ports and air terminals
are being exposed to the similar
levels of risk as those at electronic
components manufacturers,
distributors and direct customers,
we should perhaps accept this as
an acceptable stance.
“It’s the largest
high-volume system
integrators that are
most likely to be
affected first
by any shortage or
disruption in supply
” supply network felt the effects, but
On the other hand it does
contrast with the position of the
US Customs and Borders
protection agency - which has
confirmed that it is monitoring
all aircraft, maritime vessels,
passengers and goods entering
the US with the “appropriate
equipments” - which is prohibiting
entry to any suspect goods.
In its Customs Information Paper
(11) 30A dated 28th March
2011 the European Commission
NETWORK DISRUpTION?
Consorzio
The global electronic components
di attività e servizi
supplypernetwork has had a
Associazioni
rollercoaster
e gruppiride over the last
d’imprese
18 months due to the economic
downturn caused by the banking
crisis. The UK/Eire market declining
by 13% in 2009 followed by an
unprecedented 26% upswing in
2010, which equates to an overall
change in demand of close to
40%. The overall global change in
demand in the same period was
closer to 50% which, for a period
caused manufacturing lead-times
to increase dramatically. Everyone
in the electronic components
given the magnitude of the change
in demand, the process has been
managed with a high degree of
success.
Inventory in the electronic
components supply network
oscillates between being a liability
(too much, weak demand) or an
asset (too little, strong demand).
Both component manufacturers
and systems integrators employ
“lean manufacturing” methods
where inventory is seen as evil but

www.ideaelectronics.com V
 Fornitori Elettronica
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What’s going on after the earthquake
by Robin Gray
INTERNATIONAL President and CEO
ECIA (USA)
ELECTRONICS
SUPPLIERS
rgray@eciaonline.org
The earthquake in Japan
proves how fragile a just-in-time
supply chain is. With little or
no inventory to buffer shocks
to the supply chain, businesses
thousands of miles away are
left scrambling to find parts to
avoid shutting down production
lines or making needed
repairs. Combine disruptions
Consorzio
in the supply chain with little
di attività e servizi
investor/financial analyst
per Associazioni
support for businesses holding
e gruppi d’imprese
inventory and you have huge
complications for everyone.
At some point in the past, it
became fashionable for Wall
Street to downgrade businesses
such as distributors that held
inventory. The theory was that
inventory tied up working capital
and could be put to better use
elsewhere. This theory works
well when inventory is plentiful
and other profitable investments
are readily available. But when
supplies are short, cash is not
necessarily king; inventory is.
It’s not surprising that prices
go up and the incidences of
counterfeit products entering
VI www.ideaelectronics.com
the supply chain most frequently
occur after natural disasters
or when shortages occur.
Profits can be made if you have
inventory and others do not. It
also gives those companies with
stock entre’ to new customers
whose traditional suppliers lack
inventory and opportunities to
build a relationship. Customers
are motivated to re-evaluate their
existing supplier relationships
and their supply chains to
reduce future risk and to satisfy
current demand. Such is the
case as businesses look to other
countries and suppliers for parts
after the disaster in Japan.
Distributors, rather than risk
losing customers, will look
elsewhere to find product. This
search may take them to the
open market, where the risk
of getting counterfeit product
increases significantly. The same
goes for customers whose
authorized sources do not have
parts that are needed.
ECIA has responded to the
supply chain disruption by
posting on its website updates
from component manufacturers
located in Japan about the
impact of the earthquake on
production and shipping. The
association will continue to
provide this information to
members as the nation of Japan
rebuilds its infrastructure. If you
have new information about
component manufacturing in
Japan, please let staff know so
that the latest details may be
added to the website.
as a result of increased lead-times
both the quantity and value of
electronic components inventory
held by UK and Eire customers
has averagely grown. Increasingly
under pressure to “buffer” the
market on behalf of customers,
authorised distributors have also
grown their inventory holding in
line with their customer demand.
Ironically, it’s the largest high-
volume system integrators that
are most likely to be affected first
by any shortages or disruption
in supply. These companies are
supplied directly by the electronic
components manufacturers as
part of their “supply chain” or
as a local subsidiary operation
of an international organisation,
and simply don’t have the
organisational flexibility to vary
their minimal inventory (JIT)
working practices.
Availability
of raw materials
Over the last few weeks there
have rightly been some very
significant and vocal concerns
in the electronic components
supply network about the possible
impact of the crisis in Japan on
availability of raw materials used
in the production of electronic
components and specific
component technologies where
Japanese organisations have a
dominant market position.
The ability of these manufacturers
to resume normal operations
quickly is critically important but in
order to do so they need a return
to a similar access to infrastructure,
logistics, people etc that they
previously enjoyed. This will be
particularly problematic for the
multitude of organisations that
have manufacturing facilities in the
North East of Japan closest to the
epicentre of the earthquake and
tsunami.
Fortunately the major geographic
clusters of Japanese electronic
components manufacture and
systems integrators are located
broadly around and to the South
West of Tokyo in Kyoto, Nagoya,
Osaka and Fukuoka, much
further away from the areas of
greatest devastation and as a
result, their operations are likely to
be much less disrupted.
“The major geographic
clusters of Japanese
electronic components
manufacture and systems
integrators are located
broadly around and
to the South West
of Tokyo
”
Many component manufacturers
and system integrators along with
the authorised distributors are
providing regular status updates
on their facilities in Japan on their
websites. There has also been
some good investigative work
by industry analysts and freight
forwarders that has been released
quickly into the public domain.
A review of a publication from
SiliconExpert Technologies
www.siliconexpert.com “Impact
of the 2022 T hku Japanese
Earthquake on the Electronics
Industry” suggests that only 2,5%
companies are reporting high levels
of damage, with 34% having partial
damage, 37% reporting no damage
and 25% unknown. The global
logistics company Kuehne +
Nagel www.kn-portal.com has
a regularly updated site providing
latest information on shipping and
transportation in Japan. There are
copies of documents available for
download and links to sources of
information on the ECSN website
at www.ecsn-uk.org/breaking.
html
Whilst Sendai Airport and the
major sea ports in the North East
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Japan are not currently operational,
all of the other major air and sea
ports are, as is the majority of the
country’s road infrastructure. This
suggests that whilst there may be
some bottlenecks the majority of
the situation before they formulate
the inevitable plan for a thorough,
fast and ruthless clean-up and
reconstruction. The Japanese
culture empowers the individual to
make enormous personal sacrifices
radioactive material. The electronic
components supply network
has survived the stress tests of
managing massive changes in
demand and supply over the last
18 months, which suggests that
we least expect, but these can
be resolved by accurate demand
reporting and restrained purchasing
which avoids panic buying and
speculative inventory purchases.
INTERNATIONAL
ELECTRONICS
SUPPLIERS

the country’s logistics operations
are able to function well.
If I may be allowed a personal
perspective having worked in
Japan, it is that the Japanese have
a very strong culture, but it will take
a couple of months for them to fully
assess and come to terms with
for the benefit of the state and the
good of the entire community that
could not easily be emulated in the
West. The timescales and risks of
this crisis escalating are now likely
to be determined primarily by how
quickly and safely the damaged
nuclear plant can be shutdown
and the levels and spread of any
with the combined competitive
efforts of many organisations it
should be possible for the industry
to find alternative solutions to
mitigate the current crisis in Japan.
Unfortunately, there will be some
isolated instances of extended
lead-times and shortages, probably
in raw materials and product areas
The UK/Eire electronics industry
does have a part to play in
minimising the impact of the current
crisis in Japan – by continuing the
excellent communication of real
demand between all participants in
the electronic components supply
network that has been achieved
over the last 18 months.

ADDITIONAL SOURCES Fox Electronics: www.foxonline.com Sandisk: www.sandisk.com/about-sandisk/

OF INFORMATION
ELECTRONIC COMpONENT INDUSTRY
ASSOCIATIONS (USA):
www.eciaonline.org/japan.html
AUTHORISED DISTRIBUTORS
Element 14: www.element14.com
Avnet: http://em.avnet.com
Mouser: www.mouser.com
TTI: www.ttiinc.com
ELECTRONIC COMpONENTS MANUFACTURERS
3M: www.businesswire.com/portal/site/3m
Austriamicrosystems:
www.austriamicrosystems.com/eng/Press/
Allegro Microsystems: www.allegromicro.com/en
Assmann Components: www.assmann-wsw.com/
news/newseintraege/neuigkeiten/
Atmel: www2.atmel.com
AVX: www.avx.com/AVX_Japan_Statement.pdf
Bourns: www.bourns.com
CEL: www.cel.com
Cornell Dubilier: www.cde.com
CTS: www.ctscorp.com/components
CUI: www.cui.com/News/Press-Releases/
Japan-Statement
Diodes: www.diodes.com
Epcos: www.epcos.com/web/generator/Web/
Sections/Home
Epson: www.epson-electronics.de/cgi-bin/
panamafe/panama/demand
Epson Toyocom: www.epsontoyocom.co.jp/
english/info/2011/0312.html
Everlight Electronics: www.everlight.com
FCI: http://portal.fciconnect.com
Freescale: www.freescale.com
Fujitsu: www.fujitsu.com
Hitachi: www.hitachi.com
JAE: www.jae.co.jp/e-top
JST: www.jst.com
Kyocera: http://global.kyocera.com
Microchip: www1.microchip.com/downloads/
en/Market_Communication/Dear%20Customer_
March2011_Final.pdf
Molex: www.molex.com/mx_upload/
editorial/910/20110314_japan.pdf
Murata Electronics: www.murata.com/new/
info/2011
National Semiconductors: www.national.com/
analog/company
NEC LCD Technologies - NIC Components:
www.nec-lcd.com
Nichicon: http://nichicon-us.com
NKK Switches: www.nkkswitches.com/pdf/NKK_
Switches_update_Tohoku_earthquake_impact.
pdf
NMB: www.nmbtc.com
NXP: www.nxp.com/news
Omron EMC: www.omron.com/media/press
On Semi: www.onsemi.com/PowerSolutions
http://finance.yahoo.com/news/Update-on-
Impact-to-ON-bw-2759980409.html?x=0&.v=1
Optrex: www.optrex.com/about
Panasonic: http://panasonic.net/news/2011
Pericom:/www.pericom.com
PEW: http://panasonic.net/news/2011/info.html
Powerex: http://www.pwrx.com
Renesas http://am.renesas.com/press
Rohm: www.rohm.com/news
Rubycon: www.rubycon.co.jp
Samtec: www.samtec.com/News
press-room
Sanyo denki: www.sanyodenki.co.jp/en/
news/2011
Sharp: www.sharp-world.com/corporate/info/
notices/index.html
Spansion: http://investor.spansion.com
Consorzio
Taiwan Semiconductor: www.tsmc.com
di attività e servizi
per Associazioni
Taiyo Yuden: www.t-yuden.com/news/
detail.aspx?id=169 e gruppi d’imprese
TDK: www.tdk.co.jp/notice/20110322_en.html
TE Connectivity: www.tycoelectronics.com/crisis
Texas Instruments: http://newscenter.ti.com/
Blogs/newsroom/archive/2011/03/14/update-
from-ti-on-earthquake-damage-to-factories-in-
japan-646520.aspx
Torex Semiconductor: www.torex.co.jp/english
Toshiba: www.semicon.toshiba.co.jp/eng/event/
news/1189944_7141.html
UCC (United-Chemicon): www.chemi-con.co.jp/
e/news/list2011.html
Vitesse: www.vitesse.com/news
Vishay: www.snl.com/irweblinkx
INDUSTRY ANALYSTS
FutureHorizons: www.futurehorizons.com/
page/41/Future-Horizons-In-The-Press-2011
SiliconExpert Technologies:
www.siliconexpert.com
LOGISTICS ORGANISATIONS
Kuehne + Nagel http://www.kn-portal.com
OThEr
US Customs and Border Protection:
www.cbp.gov/xp/cgov/newsroom/news_releases

www.ideaelectronics.com VII
 Fornitori Elettronica
International Distribution
of Electronics Association
Solid State Lighting (SSL)
a growing market in Italy
INTERNATIONAL
ELECTRONICS
SUPPLIERS
by Silvio Baronchelli
President of IDEA &
General Manager, Assodel
I
t is difficult to measure,
as usage is dispersed
Consorzio
over thousands of small
di attività e servizi
applications within this growth
per Associazioni
industry, but tracking
e gruppi d’impresethe HB
LED market can give you a good
feeling of the dynamics of this
growing sector.
According to Strategies
Unlimited the worldwide HB
(high Brightness) LED market
in 2010 jumped by +93% going
from $5.6 billion 2009 to $10.8
billion in 2010.
But what the market analyst
presented during the conference
LIGHTING HB LED MARKET TREND
(in US bln dollar)
5,0
4,0
Miliardi di US$
3,0
2,0
1,0
0,9
0,0
2010
VIII Figura 2 • Il valore dei LED HB venduto per applicazioni lighting è
www.ideaelectronics.com
previsto crescere di cinque volte in cinque anni.
News
& Franco Musiari
Technical Director, Assodel
W/W HB LED MARKET BY AppLICATION
(in US bln dollar)
www.assodel.it
20,0
18,0
16,0
14,0
Miliardi di US$
12,0
10,0
8,0
6,0
4,0
5,6
2,0
0,0
held on February 23rd 2011 2009
in California was predictions
concerning the development of
this product family from 2010 Figura 1 • Il mercato mondiale dei LED HB deve la sua crescita al
to 2015. “
settore del ‘lighting’.
The worldwide HB
They estimated demand in the
LED market in 2010
four main markets where these jumped by +93%
components are used typically:
lighting, backlighting of TV What Graph 1 shows is that
and monitor, whatever goes the segments ‘mobile’ and
into mobile applications and ‘other’ have almost reached
the category other, collecting all a stable condition whilst the
remaining applications such as, application in the backlighting
for example, e-Signage and of the LCD screens will stabliise
signals. by 2012/2013. From this point
in time the growth of the HB
LED market will be sustained by
LED HB nel Lighting
Graph 2 the Solid State Lighting (SSL)
industry.
LED in lighting
CAGR '15/'10 = + 38%
Actually, what I have said so
far isn’t strictly pertaining to the
specific segment – the lighting
sector- which I want to focus
on, but for an aspect that we
cannot consider negligible.
That is , as much as a market
grows, and continues to grow,
1,5
2,3
2,7
4,1
4,7
it will polarize the attention of
2011 2012 2013 2014 2015 manufacturers and prices will
Strategies Unlimited continue to decrease.
Dati Strategies Unlimited
Mercato Totale LED HB Graph 1
18,9
18,1
16,5
15,7
Lighting
14,1
10,8
Backlighting
CAGR '15/'10 = + 12%
(TV & Monitor)
Mobile
Other
2010 2011 2012 2013 2014 2015
Strategies Unlimited
Dati Strategies Unlimited
This is one of the aspects
that will mostly influence the
adoption and dissemination
of this technology amongst
”
consumers.
What Strategies Unlimited
shows us, but more important,
shows to the current and
potential LED manufacturers,
is that this is a growing market
with a CAGR (Compound
Annual Groth rate), from today
to 2015, of about +12%.
“
The worldwide HB
LED market owes
its growth to
the lighting sector
”
If from Graph 1 we isolate the
data strictly related to lighting
we get Graph 2 showing that
2010 has been near to one
billion dollars (€ 890 million to
be precise) but the segment
will develop at a CAGR near
+38%. If this forecast translates
into reality, in 2015 this market

will reach a value five times the
current one: almost five billion
dollars.
If to this revenue growth we add
an average annual depreciation
of at least a 15% for LEDs’
(some of the analysts view this
as very conservative) we can
say that the volume quantity will
grow at an annual average of
+62%!
How does Italy
participate in this
market?
It is well known that in the
lighting sector, in its more
general (and traditional)
meaning, Italy competes with
Germany for a leadership
position. Germany plays a top
role in the industrial segment
while Italy goes for a top
position when the “design” is
the product added value. There
exists associations that are
taking care of the Italian lighting
industry, but, to our knowledge,
there is no data about the Italian
market currently available.
“The lighting HB LED
market will grow 5
times over 5 years
Mercato”Italiano LED HB
THE ITALIAN HB LED MARKET
AS pER ASSODEL DATA
LED HB DTAM
200
163
150
138
100
100 102
108
100
50
32
44
51
0 0
2004 2005 2006
Figura 3 • Stima del valore del mercato italiano dei LED HB
secondo i dati Assodel.
If then we look for data
about the production of
lighting systems equipped
with the LED technology, the
answer becomes even more
difficult. There are a myriad of
newcomers that, capitalizing on
the know-how acquired in the
general electronic sector, are
today addressing, especially in
the recently ended (let’s hope)
period of economic downturn,
the lighting market in addition to
the traditional manufacturers.
As Assodel - the Italian
association of suppliers and
distributors of electronic
components - we are in a
privileged position that allows
us to measure how much the
distribution channel is delivering
to the Italian market of the key
components for the SSL: the
HB LED.
The Graph 3 has been built with
the distribution data (DTAM)
Graph 3
LED HB Total Semi
191 195
171
151
104
91 87
61
60
54
48
62
2007 2008 2009 2010
Fornitori Elettronica
International Distribution
of Electronics Association
INTERNATIONAL
ELECTRONICS
SUPPLIERS
that in Italy covers almost 70%
of the total market (TAM).
In this graph the bars (gold
coloured) show the HB LED
estimated DTAM that has
developed between 2001 and
up to the end of 2010.
In 2010 the estimated DTAM is
approximately € 62 million.
But this data alone does not
mean too much if not related
to the general situation of the
market.
“The volume
quantity will grow
at an annual average
of +62%
” a global distribution agreement
This relationship comes from
the two lines drawn in the
same graph. The blue line
represents the evolution of
the total Italian semiconductor
market, measured in monetary
value, where HB LED are a
part; the brown line isolates
instead the LED portion alone.
For a consistent comparison
the values that the two portions
70
have reached in 2004 have
60 been normalized to 100.
50 At the end in 2010 the total
Milioni di €uro
semiconductor market showed
40
a 13% (87-100) decrease with
30
reference to the value reached in
20 2004 while the LED market has
10 gained a 95% if compared to
the value it had in 2004.
A great performance from a
Assodel
relatively new sector!
News
EID News
DIStrIButIoN
• TTI has announced the
appintment of Jamie Furness
to the position of general
Manager for UK, Ireland and
South Africa.
• FCI, a supplier of connectors
and interconnect systems,
has entered into an agreement
with Zahavi Technologies,
an electronic sales company of
electromechanical components
in Israel.
• Arrow Electronics reported
first quarter 2011 net income
of 136.5 million dollars on sales
of 5.22 billion dollars. Global
components sales increased of
21% year over year.
• Future Electronics and
ADDConsorzio
Semiconductor have
di attività e servizi
extended their agreement for
per Associazioni
distribution of ADD’s powerline
e gruppi d’imprese
communication SoCs to global
franchise.
• Mouser Electronics and
Luminus Devices announced
enabling Mouser to bring
Luminus’LEDs quickly to
lighting design engineers and
buyers around the world.
• Avnet Abacus is to support
its sister companies EBV
Elektronik, Silica, Avnet
Memec and Avnet Embedded
at the recently-announced
“Design Strategies for ARM
Systems” seminar program
which will play in 16 cities across
Europe in may and in june.
• Digi-Key announced the
availability of electronic
components from parallax
Semiconductor.
• Gennum has added Leading
Light Technologies (L2Tek)
as a design rep and distributor
for its complete line of analog
and mixed signal ICs in the UK,
ireland and Norway.
Source: Electronics Industry Digest
www.ideaelectronics.com IX
 Fornitori Elettronica
News
International Distribution
of Electronics Association
Taking a breath …
INTERNATIONAL
by Georg Steinberger
ELECTRONICS
SUPPLIERS
Chairman, DMASS and FBDi
www.fbdi.de
W
hat to expect from a
market that just went
through a hung swing
in 24 months - minus 23% in
2009, plus 47% in 2010? It is
Consorzio
certainly worthwhile to apply some
di attività e servizi
cautionperto Associazioni
any prediction for 2011,
also in eview with
gruppi the catastrophe
d’imprese
in Japan.
The current span of predictions for
the 2011 European components
market is ranging from a slightly
negative to very positive (a slightly
double digit growth). Nothing
unusual for market predictions to
run apart, however, after one of
the fastest cyclical turnarounds in
the industry, the question is what
to believe?
“2011 will be
different
” still has a similar proportion of
According to all industry
associations in the European
distribution market, 2011 was a
record year from all perspectives.
According the DMASS,
semiconductor distribution
grew by 54%. Even the more
traditional types of components
(Electromechanical and Passives)
grew significantly. As reported by
IDEA for the major markets, they
grew 20% and 34% respectively.
X www.ideaelectronics.com
This indicates that the growth
was not just a recovery from this
fear-driven 2009 downturn, but a
fundamental one going through a
broad variety of industry sectors.
It was a growth of mainly volume
with a bit of price increase in
some areas as well. In addition,
many design projects which
were continued during the crisis
have subsequently come into
production at the right time.
The European high-tech-industry
is back in export mode and has a
lot to offer to growing economies.
Specifically Germany now gets
reprimanded for being too
successful in export and doing
too little domestically.
As distribution grew considerably
faster than the total market it is
safe to assume that the breadth
of industries distribution served
benefitted from the upsurge
significantly more than the still
production-transfer prone OEM
sector (computers, telecom).
One proof for that is that
economies which are very OEM-
dependant and which have more
or less lost their medium sized
electronics industry (UK, France)
did not grow close to average.
Italy, on the other hand, which
EUROpEAN SEMICONDUCTOR MARKET TRENDS
(in US bln dollar and Euro)
medium-sized enterprises as is
the case in Germany, lost out in
various areas to Eastern Europe
and Asia. Are we to witness
the major Western European
national economies going the
same direction as the UK and
France? With a concentration
towards niche markets for highly
innovative companies? It appears
that Germany will remain as the
only exception to the rule.
Too complicated? Distribution
grew fast in those countries as
the big manufacturers (which are
not typical distribution customers)
are leaving the shores of Western
Europe. What was left was a solid
Graph 1
Source: DMASS, FBDI
growth above country average
but much lower than Germany
or Eastern Europe, the new
centre of gravity of the European
Electronics market. That was
2010. How do we proceed from
here?
“Distribution is still
a people business
”
2011 will be different. Another
growth like in 2010 is hardly
possible. Really? Looking at the
dynamics of the second half of
2010 including the bookings
development, the term “back
to normality” comes to mind.
What some associations who
also collect bookings already saw
in Q4/2010, a slight flattening of
bookings versus billings, failed to
continue as such (the curve once
again showed a slight upturn).
What looked like a fairly painless
‘coming down to earth’ only a few
weeks ago may easily give way to
an unexpected boost in growth
on account of the crisis in Japan
and all the uncertainty which it
involves. As it is impossible to say
with any degree of certainty how
things will proceed, the same
general tendency remains: robust
business until mid-year, followed
by a slight downturn (again at a
high level) in the second half. In

total, the calendar year 2011 is
expected to end for European
distribution with a growth around
5 to 10%.
An important point to note is
that global and macro-economic
factors of influence are now
making themselves felt in
the high-tech industry, which
previously seemed to operate
largely in isolation. This has the
effect of shedding even more
doubt on the reliability of market
forecasts. The big question,
namely how the Asian market will
develop this year in its capacity
as the main driving force behind
component consumption and
equipment production worldwide,
has now been pushed aside by
considerations of availability and
the general uncertainty as to the
consequences of the Japanese
crisis. There are already signs of
selective shortages and rising
prices. Will the usual domino
effect set in?
The primary consequences are to
be seen in the major sectors such
as computers, communications
and consumer goods. The
industrial segments mainly served
by the distribution sector then
experience a ‘knock-on’ effect,
i.e. they suffer indirectly, but no
less drastically, being faced with
problems of availability, pricing
and erratic customer demands.
“Global and macro
economic factors of
influence are now
making themselves
felt in the hi-tech
industry
” cycle. Who has them, will win!
A positive aspect of this
development in Europe can be
seen in the fact that in the long
term, the structural changes (the
‘go east’ effect and the remaining,
mainly medium sized and start-up
EUROpEAN DISTRIBUTION MARKET 2003 TO 2010 (Forecast)
(in bln Euro)
EUROpEAN SEMICONDUCTOR DISTRIBUTION 2010
(in %)
oriented industries) point to the
distribution sector as being the
most effective channel for
the European components
industry.
In such a scenario, those
companies which have the best
services to offer in the areas of
support and design will be able
to call the shots. In addition, the
lesson learnt from 2009/2010 is
that more sophisticated supply
chain solutions are necessary
to help minimise shortages or
inventory built in the next market
Interestingly, despite acquisitions
and consolidations over the
course of 20 years, there is
still no one size fits all model of
distribution, with many niche
specialists and catalogue
Fornitori Elettronica
News
International Distribution
of Electronics Association
Graph 2 A look at
Eu directives
by Lena Norder
INTERNATIONAL
Director of SE
ELECTRONICS
SUPPLIERS
The Swedish Electronics
Trade Association
It is imperative for the
companies in our industry
to keep updated with the
EU directives. To help the
companies with this, the
Swedish Electronics Trade
Association (SE) arranged
Source: DMASS, WSTS, Avnet 2010 a focus day in March where
experts from the Ministry
of Environment and the
Graph 3 responsible governmental
authorities gave an overview
of the regulations and latest
news concerning RoHS,
WEEE and REACH.
The new RoHS is just around
Consorzio
the corner and as expected
di attivitàScope”
the “Open e servizi will
per Associazioni
be implemented. The new
FORTRONIC
electronics f o r u m
RoHSe gruppi d’imprese
will include all electric
enjoy
and electronic products that
the electronic community
are not explicitly excluded.
The challenge will be to
Source: DMASS
adjust to the new rules
Associazione Nazionale
Fornitori Elettronica
and in those cases where
exceptions are needed, start
companies (online) coexisting with International Distribution
the process of applying for
of Electronics Association
the big global broadliners. those exceptions.
Despite new technologies
INTERNATIONAL
and more automation on the EU are still working with
ELECTRONICS
SUPPLIERS
customers’ side with regards the new WEEE and there is
no new proposal ready for
to order handling, distribution is
decision there yet. As for
still a people business, where REACH, one difficult issue is
experience, commitment and that there is a disagreements
expertise play a big role. within EU how to measure
0.1% - of what. What is
Consorzio
di attività e servizi
per Associazioni
a product? Six countries:
e gruppi d’imprese
That said, 2011 and 2012 could
FORTRONIC
Sweden, Germany, France, electronics f o r u m
become years where distribution
Denmark, Ostrich and enjoy
can overhaul its models and solve Belgium have a different view
the electronic community
some of the pending issues like than the other EU-countries
consistent data management and claim that a part, spare
part and component should
(Date code, PCNs) or the Associazione Nazionale
Fornitori Elettronica
be regarded as a product.
unfortunate situation with EU
The experts on site could
directives. Nothing the distributors not give an answer to when
International Distribution
of Electronics Association
(or distribution as an industry) can this disagreement was to
do alone, but certainly an area, be solved – a frustrating INTERNATIONAL
message for the audience at
ELECTRONICS
SUPPLIERS
where the aggregative view across
many different customer interests the focus day.
can help to clear the confusion.
www.ideaelectronics.com XI
Consorzio
di attività e servizi
 Fornitori Elettronica
News
International Distribution
of Electronics Association
A decade of Upheaval
by Ron Bishop
Bishop & Associates
INTERNATIONAL
ELECTRONICS
SUPPLIERS
T
he first decade of the 21st
century was arguably one
of the more difficult periods
in modern business history in
which to run a business. Historians
would probably rank the two World
Wars and the Great Depression
as more difficult decades for
business, but the years 2000-2010
would certainly receive “honorable
mention” as the worst decade.
Consider the following events that
occurred during the past ten years.
• Attacks on the World Trade
Center and the subsequent war
on terror.
Consorzio
di attività e servizi
per Associazioni
e gruppi d’imprese
WORLD CONNECTOR MARKET: percentage change in Sales
2000 - 2010
XII www.ideaelectronics.com
• Dot.Com bubble and bust that
created a large over capacity
situation in the telecom/datacom
markets.
• 2001/2002 recession that
followed the dot.com bust.
• Exodus of manufacturing from
the western countries to China.
“We believe that
automotive is on the
verge of renaissance
” • Wars in Iraq and Afghanistan.
• Housing boom and bust
• Excessive government spending
burdening a number of European
countries with heavy debt
requiring European Union bail
outs.
CONNECTOR INDUSTRY: Historical Growth 1980 - 2010
(in million dollars)
INDUSTRY 10 YEAR
YEAR
SALES CAGR
1980 $ 8,680 - -
1990 $ 16,503 6,7%
2000 $ 34,234 7,6%
2010 $ 45,341 2,8%
• Financial melt down and sharp
decline in stock markets globally.
• Second worst economic
recession in modern history in
2008-2009.
• Earthquake and tsunami in Asia.
These events created a feast and
famine business environment
that made it exceedingly difficult
to know where best to deploy
assets. During this timeframe
the connector industry moved
between unprecedented growth to
historical downturns, often within
consecutive years.
The graph 1 plots the year-over-
year change in connector sales
from 2000-2010.
In 2000, the industry achieved
a record high growth rate of
+18.1%, including record high
sales of $34,234 million. The dot.
com bubble burst in 2001 and
the industry suffered through the
two worst years in industry history
GRAPH 1
TABLE 1
20 YEAR 30 YEAR
CAGR CAGR
-
- -
7,1% -
5,2% 5,7%
with sales declining -18.9% in
2001 and -7.6% in 2002. The
exodus of manufacturing from
Europe and North America to
China accelerated. Manufacturing
plants closed and massive layoffs
ensued as the industry down sized
to meet lower demand for electric
products and to rapidly reallocate
manufacturing resources to low
labor cost China.
A recovery began in 2003, but
five years passed before the
industry reached sales levels last
achieved in 2000. Connector
sales continued to grow for six
consecutive years (2003-2008) but
growth came to an abrupt stop
in the second half of 2008 when
the housing market unraveled and
financial markets nearly collapsed.
We then entered into the second
worst recession in modern
business history.
The industry experienced eighteen
consecutive months of declining
sales. In January 2009, connector
sales declined 50% and the supply
chain began to once again idle
manufacturing capacity and reduce
headcount.
“In 2009, the
depression was driven
by fear of a financial
meltdown
”
The recession was driven by fear
of a financial meltdown and world
recession that would equal the
Great Depression.
Governments reacted with
massive amounts of spending and
corporate bail outs. As confidence
increased that there was not
 Fornitori Elettronica

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International Distribution
of Electronics Association

going to be a financial meltdown, WORLD CONNECTOR DEMAND 2000 - 2010 TABLE 2

consumers began to buy goods (in million dollars)
and services, and companies
began to manufacturer to refill the 5 YEAR 5 YEAR 10 YEAR
REGION 2000 2005 2010
CAGR CAGR CAGR
depleted inventory pipeline and
North America $ 12,649 $ 9,525 -5,55% $ 8,646INTERNATIONAL -1,9% -3,7%
meet the pent up demand created ELECTRONICS
Europe $ 8,352 $ 9,336 2,05% $ 10,251SUPPLIERS 2,1% 2,1%
by eighteen months of reduced
Japan $ 5,249 $ 5,179 -0,35% $ 6,027 3,1% 1,4%
consumer spending. The result
China $ 1,849 $ 5,633 25,0% $10,833 13,9% 19,3%
was astonishing.
Asia Pacific $ 4,394 $ 4,502 0,5% $6,971 9,1% 4,7%
Row $ 1,741 $ 2,128 4,1% $ 2,614 4,2% 4,1%
In still another feast and famine
scenario, connector sales
World $ 34,234 $ 36,202 1,1% $ 45,341 4,6% 2,8%
increased +28.4% in 2010,
generating sales of $45,341
million. In one year the industry
recovered all of the demand lost
connector demand. North America
was seven times larger than
The market sectors that fled
the West for China were those
“Europe grew to
in 2009. China which had 2000 connector related to consumer products and 10,251 million dollars
sales of $1,849 million. In 2010 therefore more sensitive to price. in 2010 and achieved
“The industry CAGR China achieved connector sales Such markets were computers a ten year
for 2000-2010 period of $10,833 million and surpassed (desktops, laptops, tablets),
CAGR of 2.1%
was only a third both North America and Europe
in annual sales of connectors. The
computer peripherals (printers,
faxes, external storage) mobile
”
achieved in the five year period of
of the growth following table shows this dramatic communications (cell/smart 2005-2010.
historically achieved shift in connector demand over five phones, PDAs, navigation devices),
in the industry and ten year time frames. videos (TVs, flat screen, DVDs) The table N.3 displays our five year
” and white goods (washers, dryers,
Consorzio
forecastdi for the connector
attività e servizi industry
In spite of the incredible rebound Between years 2000-2010 North stoves). by geographic
per Associazioni China will
region.
in connector demand in 2010 America dropped from $12,649 The great exodus to China on reach $22,241 million in annual
e gruppi d’imprese
and with six consecutive years of million annual sales to $8,649 these products is mostly over. connector sales and be 2.2 times
consecutive growth (2003 through million, shedding $4,003 million in Some additional manufacturing larger than North America.
2008), the decade was a bust annual connector sales by 2010. will still move to China, but it will
yielding a ten year compound The ten year CAGR was -3.7% not be dramatic. However, this The demand for connectors
annual growth rate of a mere which directly related to moving does not mean that double digit in China will be driven by the
2.8%. manufacturing capacity to China. connector growth in China is over. consumer products previously
mentioned, but a big boost in
The industry 2000-2010 CAGR Europe grew to $10,251 million Future China growth will not be connector demand will come from
of 2.8% was only a third of the in 2010 and achieved a ten year driven by manufacturing exiting the automotive. Demand for vehicles
growth historically achieved in the CAGR of 2.1%. The growth West, but by internal investment from the Chinese middle class is
industry. was primarily the result of a in new manufacturing capacity soaring and will continue strong
rising euro to the US dollar (we to support demand for electronic for years.
Looking ahead, we believe the measure connector demand in US products from a growing Chinese In fact, we believe that
next ten years will be better and dollars). When measured in local middle class. In fact, we believe automotive is on the verge
connector growth will return to currencies, Europe did not fare China’s connector growth will of a renaissance that could
historical norms. We are now much better than North America. slightly exceed the 13.9% CAGR make the automotive sector the
forecasting a 7.5% CAGR for the fastest growing market sector
next five years (2010-2015). The WORLD CONNECTOR MARKET FORECAST 2010 - 2015
for connectors over the next five
TABLE 3
industry will grow from $45,341 (in million dollars) years.
million in 2010 to $65,071 million
in 2015. This adds approximately 5 YEAR The updated Bishop five year
REGION 2010 2015
$20 billion in annual sales by 2015. CAGR Connector Industry Forecast is
Of course only time will tell. North America $ 8,646 $ 10,159 3,3% scheduled for release at the end
Europe $ 10,251 $ 12,677 4,3% of may, 2011. The forecast will
Japan $ 6,027 $ 6,850 2,6% break out each market sector and
Dramatic change China $ 10,833 $ 22,241 15,5% sub-sector over five years for each
in regional DemanD Asian Pacific $ 6,971 $ 9,243 5,8% geographic region.
In 2000 North America achieved Row $ 2,614 $ 3,901 8,3% As of this Bishop Report the
connector sales of $12,649 million, outlook is good, especially in
World $ 45,341 $ 65,071 7,5% automotive.
accounting for 37% of world

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International Distribution
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Wireless Fortronic Forum
28th June 2011- Williams F1 Conference Centre (Oxford) - UK
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the uK’s first one day free
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In partnership with
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The UK’s first one
e gruppi day free
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The Morning session
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presentations on topics
covering:-Wimedia and Wireless
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control & sensing, Optimisation
of battery design for wireless
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overview and sensor solution,
wireless memory, speeding
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FortroNIC Forum
28th JUNE 2011
oXForD
Williams F1 Conference Centre
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