Global electronic business conditions began strong in 2008 but then ‘crashed and burned’ late in the year. 2008 world GDP rose 2% vs. 2007, electronic equipment revenues ‘broke even,’ printed circuit board sales dropped 6%, semiconductor $ shipments declined 2% and SEMI equipment plunged 28%.

By the end of 2008 industrial production growth had stalled worldwide and electronic equipment production 3/12 growth was broadly negative—with the downturn most dramatic in Japan and SE Asia. High volume end markets were hit the hardest. As available credit tightened and consumer and business confidence and disposable income shrank, so did the demand for consumer and industrial electronics.

In the 4th quarter of 2008, a slowdown in personal computer sales was just one reflection of reduced consumer and business spending. IDC reported that world PC shipments shrank 0.4% and USA shipments dropped 3.5% in 4Q’08 vs. 4Q’07. This was the first world personal computer quarterly decline since 2002. Computer motherboard sales ‘overreacted’ by dropping 11% in total 2008 and 18% in this same fourth quarter.

Read the full article.