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North American EMS Industry Down 3.2 Percent in August

IPC Releases EMS Industry Results for August 2021

IPC announced today the August 2021 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.48.

Total North American EMS shipments in August 2021 were down 3.2 percent compared to the same month last year. Compared to the preceding month, August shipments grew 16.9 percent.

EMS bookings in August rose 27.5 percent year-over-year and grew 29.3 percent from the previous month.

“August brought another strong month of orders for the EMS sector. Year-to-date bookings are up 22 percent,” said Shawn DuBravac, IPC’s chief economist. “During the month we also saw shipments pick-up, a hopeful sign that manufacturers will be able to deliver on their growing backlog of orders.”

EMS book to bill ratio chart August 2021

View chart in pdf format

Detailed Data Available

Companies that participate in IPC’s North American EMS Statistical Program have access to detailed findings on EMS sales growth by type of production and company size tier, order growth and backlogs by company size tier, vertical market growth, the EMS book-to-bill ratio, 3-month and 12-month sales outlooks, and other timely data.

Interpreting the Data

The book-to-bill ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period from companies in IPC’s survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which is a positive indicator for sales growth over the next three to twelve months. A ratio of less than 1.00 indicates the reverse.

Year-on-year and year-to-date growth rates provide the most meaningful view of industry growth. Month-to-month comparisons should be made with caution as they reflect seasonal effects and short-term volatility. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month to month might not be significant unless a trend of more than three consecutive months is apparent. It is also important to consider changes in both bookings and shipments to understand what is driving changes in the book-to-bill ratio.

IPC’s monthly EMS industry statistics are based on data provided by a representative sample of assembly equipment manufacturers selling in the USA and Canada. IPC publishes the EMS book-to-bill ratio by the end of each month.

North American PCB Industry Sales Down 11.7 Percent in March

IPC releases PCB industry results for March 2022

II

IPC announced today the March 2022 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.05.

Total North American PCB shipments in March 2022 were down 11.7 percent compared to the same month last year. Compared to the preceding month, March shipments rose 5.6 percent.

PCB year-to-date bookings in March were down 25.9 percent compared to last year. Bookings in March fell 1.3 percent from the previous month.

“Stronger shipments suggest marginal improvement in supply chain dynamics but a drop in orders alludes to slowing demand across a number of downstream sectors,” said Shawn DuBravac, IPC’s chief economist.

March 2022 PCB book to bill ratio chart - 1

March 2022 PCB book to bill ratio chart - 2

View charts in pdf format

Detailed Data Available

Companies that participate in IPC’s North American PCB Statistical Program have access to detailed findings on rigid PCB and flexible circuit sales and orders, including separate rigid and flex book-to-bill ratios, growth trends by product types and company size tiers, demand for prototypes, sales growth to military and medical markets, and other timely data.

Interpreting the Data

The book-to-bill ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period from companies in IPC’s survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which is a positive indicator for sales growth over the next three to twelve months. A ratio of less than 1.00 indicates the reverse.

Year-on-year and year-to-date growth rates provide the most meaningful view of industry growth. Month-to-month comparisons should be made with caution as they reflect seasonal effects and short-term volatility. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month to month might not be significant unless a trend of more than three consecutive months is apparent. It is also important to consider changes in both bookings and shipments to understand what is driving changes in the book-to-bill ratio.

IPC’s monthly PCB industry statistics are based on data provided by a representative sample of both rigid PCB and flexible circuit manufacturers selling in the USA and Canada. IPC publishes the PCB book-to-bill ratio by the end of each month.

 

Component Shortages are Driving Production Delays and Higher Costs for Manufacturers, According to a New Global Industry Survey

IPC found the electronics industry sees no immediate end to shortage woes, 58% expect problem to linger until late 2022 or beyond

A new global survey found that electronics manufacturers continue to be harmed by the global shortage in semiconductors and other components, parts and materials, leading to production delays, increased material goods costs, and a cloudy industry outlook. The survey, conducted by IPC, also found that companies continue to face significant challenges in hiring and keeping skilled talent.

“Supply shortages and other dislocations are impacting the global electronics supply chain and every downstream industry these manufacturers serve,” said Shawn DuBravac, IPC chief economist and lead researcher on the study. “Strong demand is helping industry sales, but shortages are delaying shipments and increasing backlogs. Manufacturers are facing higher prices as they compete for limited supply. This is a global phenomenon that is going to take well into next year to resolve.”

          The survey results found that:

  • Shortages are leading to delays. 88% of respondents have experienced increased lead times, and 31% saw production delays of eight weeks or more.
  • Companies report the issue will not be resolved soon. 58% of companies expect the shortages to end in the second half of 2022 at the earliest.
  • Global inventories – already depleted – are declining. 59% of respondents said that backlogs are increasing. 25% say inventory available to customers will continue to decline, and 48% say inventories will stay flat. 
  • Shortages are forcing companies to spend more to produce their products. 90% of respondents have paid increased prices to suppliers because of shortages.
  • Companies are increasing wages and upskilling workers to address workforce hiring and retention. 80% of respondents believe the challenge of finding qualified workers isn’t likely to ease. Firms have increasingly taken to upskilling their workers on their own (46% of respondents), boosting wages (44% of respondents) and other measures to fill the gaps.

“While there has been plenty of attention paid to the shortage in semiconductors, it’s important to point out that electronics companies around the globe are facing additional shortages and backlogs, experiencing diminished inventories, and paying higher materials prices,” added John Mitchell, IPC president and CEO. “The current situation is unsustainable. If the current shortages extend beyond 2022 as feared, they will continue to have serious consequences for all industries tied to electronics manufacturing.”

IPC surveyed hundreds of companies from around the world, including a wide range of company sizes and representing the full electronics manufacturing value chain. Survey respondents were from North America (44%), Asia (20%) and Europe (17%).

Automotive and Electronics Industries Convene to Prioritize Challenges

Industry leaders share concerns with AIAG, SEMI, and IPC at virtual focus group
Sep 22, 2021
| By Tracy Riggan

By Tracy Riggan, IPC Senior Director, Solutions

Representatives from global companies across the value chain were invited by AIAG, IPC, and SEMI to discuss and consider industry challenges by their importance as well as the feasibility of solutions. When asked to list the automotive electronics challenges most ripe for industry cooperation and association support, automotive and electronics industry leaders prioritized quality and reliability, supply chain resiliency and transparency, and electrification. Sixteen industry leaders, primarily from technical/engineering functions but including quality, strategy, and purchasing/marketing professionals from vehicle OEMs, automotive Tier 1s, semiconductor part and processing equipment suppliers, and electronic component/device part and processing technology suppliers came together for the virtual focus group which took place September 1, 2021.

technical and business

10 Top Priority Challenges

In late 2020, AIAG, IPC, and SEMI issued an industry survey documenting the industry’s views on the top challenges and opportunities for automotive electronics as well as views on how they look to associations to help. The survey yielded 22 challenge areas, 10 of which were narrowed by the associations to a proposed 10 ‘top priority challenges.’ The focus group discussed these top priority challenges in depth, including updating the list to pull reliability through defect measurement and labor/skill shortages into the top 10 before ranking the challenge areas individually by impact and urgency.

One respondent to the survey aptly summarized the gamut of challenges that made up the ultimate list, “Poor customer designs, unclear customer requirements, customers who don't like being asked to clarify requirements, component availability, AIAG standards/books that don't work for complex electronics” and suggesting that associations can work to bring “better clarity in industry standards [and the assurance that] industry standards cover more possible nonconforming conditions   (Tier 2, Device Manufacturer)

Feasibility of Solutions

survey results

Following these results, the Top Priority Challenges were considered in terms of feasibility or the degree of effort toward and likelihood of success of solutions, including the ability for associations to drive necessary action to address the challenges. This group further honed the list to 5 topics judged to be the most feasible to solve. In the interest of time, the group discussed their top 3.

  • Supply Chain Resiliency
  • Quality/Reliability – Zero Defects
  • Electrification

Supply Chain Resiliency & Transparency

One focus group participant cautioned, “We need to look at growth and capacity vs. shortages. If we don’t get this right, we might even end up with oversupply down the road.” (VP of Marketing, Semiconductor Company) The many recent ‘unexpected’ events play a part in this rising to the top, including COVID, however lead times going into the pandemic were already long and inventory management was not utilizing a system to withstand significant shifts. The main aspects discussed were the lack of transparency on what inventory is truly available and from whom and the holding of supply as a hindrance to forecasting and measuring risk. The group expressed desire for a simpler supply chain or at least to understand it better. It was agreed that co-development of industry solutions and cooperation will assure the best result. Suggested potential solutions included a way to fast-track approval of new solutions from new sources, inventorying production capabilities, and education related to the accuracy and benefits of software platforms which aggregate inventory across suppliers.

Industry Expectations

Quality and Reliability

Quality and reliability rose to the top 10 challenges in several forms, but the group felt the most important was the ambiguity surrounding Zero Defects. A broad range of definitions exist of what zero defects means.  Shifting the focus from inspection to prevention is key.  Open discussion is happening about what reliability automotive solutions need and what is realistic. With this in mind, a clearer definition of the concept in the frame of current reliability expectations as well as direction on the place, time, and method to measure and assess Zero Defects would benefit industry, according to the group. Additionally, it was questioned if today’s level of factory automation and data analytics are up to the task to make measurement feasible and create the tracing required. A clear connection between the front and backend of the supply chain to enable communication necessary for such traceability was mentioned in multiple contexts.  

Electrification

Electrification was highlighted as a more urgent need while advanced node technologies was noted as an ongoing need which we continue to develop long term. There are many sides to addressing electrification challenges; parts are high-value and often produced outside U.S., design takes time and is highly complex, testing is insufficient, new technology reliability is unable to be fully assessed for the automotive environment, manufacturing increasingly involves handling of dangerous components, and media attention for negative incidents which are not relative, and uninformed suppliers new to automotive. To begin to address these, the group would like to see avenues for suppliers to get more complete information to develop solutions and efforts to localize supply of crucial parts and materials.

Next Steps

The next steps for AIAG, IPC and SEMI will be to draft solution options on the prioritized issues and discuss these in narrowly focused groups to confirm pathways forward and build on plans. AIAG, IPC, and SEMI recognize the criticality and power of cooperation to drive solutions for our industries in this time of rapid development and under new reliability demands.

To learn more about future opportunities to participate in focus groups specific to automotive electronics’ needs, please reach out to

AIAG – contact Dave Mimms, dmimms@aiag.org 

IPC – contact Tracy Riggan, TracyRiggan@ipc.org

SEMI – contact Bettina Weiss, bweiss@semi.org

 

 

 

 

 

Winners of IPC Hand Soldering Competition at Instrutec in Tallin, Estonia Announced

New award for best company team presented

In cooperation with the Instrutec tradeshow in Tallin, Estonia, IPC re-launched its popular Hand Soldering Competition, hosting skilled competitors on September 8-10 who demonstrated their expertise in hand soldering while competing for cash prizes. The first hand soldering held in-person since 2019, Instrutec welcomed 26 hand soldering experts representing eight electronics companies.                            

This year’s competition board was designed by French supplier Polygone CAO in accordance with IPC-A-610H criteria. Featuring 116 components as small as 0402 and 0603, the board provided a significant challenge to contestants, resulting in only five of 26 competitors completing the assembly within the time allotted, and only three of those boards functioning to specifications. IPC-A-610 Master Instructors from TPT- Tallinn Polytechnic School, the IPC licensed master training center in Estonia, served as the competition judges.

On the winner’s podium for Estonia:

First place: Timmo Antso, Scanfil OÜ, with a board at 556 points of 558 possible points, produced in 54 minutes. He received a certificate from IPC, a cash prize of €300, and a present from sponsor Almit.

Second place: Ivo Ellik, Scanfil OÜ, with a board at 518 points of 558 possible points, produced in 60 minutes. He received a certificate from IPC, a cash prize of €200, and a present from sponsor Almit.

Third Place: Karin Andressoo, Enics eesti AS, with a board at 556 points out of 558 possible points, produced in 60 minutes. She received a certificate from IPC, a cash prize of €100, and a present from sponsor Almit.

New this year –IPC Award to the Best Company Team

IPC and its partner, the Estonian Electronics Industries Association, presented a new award, recognizing the best company team in hand soldering. Companies with two or three competitors were automatically entered in the best company competition. The best company award was determined by the best scores of the contestants from that company. This year, eight companies competed, with the top prize going to: Estonia Scanfil OÜ, with the combined score of 1,074 against a maximum possible score of 1,116, completed within the total combined time of 114 minutes (maximum time allowed 120 minutes).

Next Competitions in Europe

  • Next Regional Competition in Europe will take place at productronica in Munich, Germany from November 16-19, 2021.
  • The IPC Hand soldering Competition will return to Estonia again next year (dates and location to be determined)

For more information on European hand soldering competitions, contact Philippe Leonard, IPC Europe director at PhilippeLeonard@ipc.org.

IPC is very grateful to its Hand Soldering Competition sponsors for their constant support:

  • Gold Sponsors: Hakko and Thalès
  • Silver Sponsors: Almit GmbH, Optilia, TheDaylightCompany, SFM-Société Française de Microscopie and Polygone CAO
  • Local Sponsors: The Estonian Electronics Industries Association, Instrutec and TPT- Tallinn Polytechnic School.

Defect Resolution in Manufacturing: Using Specific Tools to Prevent Defects and Enhance Product Quality

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Date
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No matter what industry you’re in -- at the end of the day, it’s all about quality and yields. In the interest of productivity, we often allow yields to suffer. As products and technologies become ever more complex, it is no longer acceptable to simply consider quality as a target value. Why? Because that target evolves to become ever more elusive if you approach quality in terms of target value. You must strive for ever tighter process windows. And this can only be accomplished by learning and applying essential tools available to solve complex issues and provide defect minimization in a timely fashion.

John Mike Carano, RBP Chemical Technolgy, for a webinar hosted by IPC’s Thought Leaders Program, “Defect Resolution in Manufacturing,” for an interactive discussion.  Some of the key tools we will discuss include:

  • process maps
  • qualify function deployment (QFD)
  • statistical process control (SPC) and
  • critical thinking required to understand the inter-relationships of the various process steps involved in bringing a finished product to the end customer.

We must understand the process so that we can monitor, control, and understand all variables that can affect the output of the finished products.

In general terms, the focus will be on continuous improvement -- always striving to produce final product with minimal variation and highest possible yields. By using these select tools, you will learn how to continually improve systems and processes.

Who Should Attend This Webinar?

Engineers, R&D personnel, quality control professionals and managers involved in the manufacturing of high-end and mission-critical technologies

Real-life examples will be presented to supplement the presentation.

Online Event

3000 Lakeside Dr.
Suite 105N
Bannockburn, IL 60015
United States

Online Event

Online Event
3000 Lakeside Dr.
Bannockburn, IL 60015
United States

READ MORE

Winners of IPC Hand Soldering Competition at Global Industrie in Lyon, France Announced

New award for best company team presented

In cooperation with 2021 Global Industrie, IPC re-launched its popular Hand Soldering Competition, hosting skilled competitors on September 6-9, who demonstrated their expertise in hand soldering while competing for cash prizes. The first in-person trade show held in France since the onset of the COVID pandemic, Global Industrie welcomed 36 hand soldering experts representing 18 electronics companies.                                                                                                   

This year’s competition board was designed by French supplier Polygone CAO in accordance with IPC-A-610H criteria. Featuring 116 components as small as 0402 and 0603, the board provided a significant challenge to contestants, resulting in only ten of 36 competitors completing the assembly within the time allotted, and only five of those boards functioning to specifications. IPC-A-610 Master Instructors from IFTEC, an IPC licensed master training center in France, served as competition judges.

          On the winner’s podium for France this year:

  • First place: Pauline Duval, Thalès Etrelles (former World Vice-Champion at the 2019 IPC World Championship), with a board at 552 points out of 558 possible points, produced in 60 minutes. She received a certificate from IPC, a cash prize of €300, a soldering station from sponsor Hakko, and a gift from sponsor Almit.
  • Second place: Marina Bouvet, Thalès Etrelles, with a board at 550 points out of 558 possible points, produced in 56 minutes. She received a certificate from IPC, a cash prize of €200, and a gift from sponsor Almit.
  • Third place: Manuela Anani, Dassault Aviation,  with a board at 544 points out of 558 possible points, produced in 57 minutes. She received a certificate from IPC,  a cash prize of €100, and a gift from sponsor Almit.

New this year – The IPC award to the best company team

IPC and its partner Les Cahiers de l’Industrie Electronique presented a new award, recognizing the best company team in hand soldering. Companies with two or three competitors were automatically entered in the best company competition. The best company award was determined by the best scores of the contestants from that company. This year, 11 companies competed, with the top prize going to: Thalès Etrelles, with the combined score of 1,102 against a maximum possible score of 1116, completed within the total combined time of 116 minutes (maximum time allowed 120 minutes).

Next competitions in Europe

  • Next regional competition in Europe will take place at productronica in Munich, Germany from November 16-19,2021.
  • Next competition in France will take place next year at Global Industrie scheduled for spring 2022 (dates to be confirmed) in Paris-Villepinte, France.   

For more information on European hand soldering competitions, contact Philippe Leonard, IPC Europe director at PhilippeLeonard@ipc.org.

IPC thanks IPC Hand Soldering Competition sponsors for their generous support:

  • Gold Sponsors: Hakko and Thalès.
  • Silver Sponsors: Almit GmbH, Optilia, TheDaylightCompany, SFM-Société Française de Microscopie, and Polygone CAO
  • Local Sponsors: IFTEC, SNESE and Global Industrie and Les Cahiers de l’Industrie Electronique.

U.S. May Investigate Chinese Subsidies to Domestic Companies

Sep 17, 2021
| By Ken Schramko

by Ken Schramko, IPC senior director, North American Government Relations

The Biden administration, as part of its review of the U.S. relationship with China, is considering initiating a new probe under Section 301 of the Trade Act of 1974 into subsidies paid by the Chinese government, though no announcements or actions have yet been taken. Findings of unfair subsidies could lead to additional tariffs or further trade restrictions taken against China.

The United States has long alleged that these subsidies provide an unfair advantage to Chinese companies and pointed to support provided by the Chinese government at both the national and local levels.

Any probe would likely examine the subsidies paid by the Chinese government to industries and individual companies and future action proposed by the Chinese to support their domestic industries, as well. The U.S. government would likely want to cast a wide net on such an investigation, looking at support given to Chinese state-owned enterprises (SOEs); industries like those dealing with solar panels, steel, and auto parts; companies that are taking advantage of programs that target small- and medium-sized businesses; and the sort of “anti-subsidies” that the Chinese government uses to punish companies that do not toe the government line.

The U.S. government currently suffers from a lack of data into Chinese subsidy practices and have difficulty quantifying exactly how much businesses are benefitting from them. A 301 investigation would look to answer some of these questions, as well as provide substantial data and economic impact of the Chinese subsidy program. However, this data is going to be difficult to obtain, and such an investigation could require an extensive timeline.

IPC will continue to monitor potential U.S. trade actions that could impact our members, including this potential investigation, and will provide updates as we have them.

 

IPC Unveils Golden Gnomes Awards at IPC SummerCom 2021

Awards ceremony honors standards development A-Team members

A new awards ceremony, the Golden Gnome Awards, was launched at IPC SummerCom 2021. The Golden Gnomes, inspired by IPC’s fictional TechNet gnomes Clumpy and Kloumpios, will occur annually at IPC SummerCom.

The Golden Gnome Awards recognize A-Teams and specific members for accomplishments and creativity during the year prior to each SummerCom. A-Teams are dedicated groups of volunteers within IPC working groups who take on a significant amount of work on behalf of their groups.  

“The Golden Gnome Awards give us the opportunity to honor our standards development committee A-Team members who demonstrate significant work ethic or rise above challenges – this past year was a prime example – to complete their groups’ projects, all in the spirit of hard work, diligence and helping our industry build electronics better,” said Teresa Rowe, IPC senior director, assembly and standards technology, “And what could be more fun than receiving a Golden Gnome trophy?”

Each Golden Gnome trophy was created using a 3D printer and then hand-painted by an IPC staff liaison, making these trophies one of a kind.

Categories for 2021 awards and their winners are:

The A-Team Name of the Year, which is selected by vote of the IPC Committee Chair Council, for the A-Team with the most creative name. Winner: Shock and Awe, presented to Tiberiu Baranyi, Flextronics Romania SRL; Bob Cooke, NASA Johnson Space Center; Francisco Fourcade, NASA Johnson Space Center; Symon Franklin, Custom Interconnect Ltd.; Garry McGuire, NASA Marshall Space Flight Center; and Richard Rumas, Honeywell Aerospace.

The IPC Works Leaderboard recognizes A-Team members with the most activity on IPC Works, IPC’s standards development community’s collaboration and networking intranet. The IPC Works Leaderboard award was presented to Debbie Wade, Advanced Rework Technology – A.R.T.

The Gnome Spirit Award is presented to A-Team members who have made significant contributions despite difficult situations. The 2021 Gnome Spirit awards were presented to Chuck LePard, DXC Technology and Julie Silk, Keysight Technologies.

The Gnoble Gnome Award recognizes lifetime or long-term achievement of A-Team members who have demonstrated dedicated A-Team participation or leadership over multiple years and/or have shaped the way A-Teams work in developing IPC standards.

This year’s Gnoble Gnome Award recipients were Dave Hillman and Doug Pauls, both of Collins Aerospace, co-creators of Clumpy and Kloumpios, long-time IPC committee member volunteers and leaders of many A-Teams.

The Outstanding A-Team Member of the Year is presented to an A-Team member who has gone above and beyond in their A-Team participation. This year’s winner was Francisco Fourcade, Fourcad, Inc.

For more information on IPC’s Golden Gnome Awards, contact Teresa Rowe at TeresaRowe@ipc.org. For industry members interested in joining an IPC standards working group and charting a path to their own Golden Gnome Award, visit www.ipc.org/ipc-standards.

EU Steps Up “Semiconductor Sovereignty” Plans

The European Commission plans to introduce a “European Chips Act” to provide a European vision and strategy to boost cutting-edge semiconductor manufacturing capacity in the region.

The announcement was made by European Commission President Ursula von der Leyen during her State of the Union speech in Strasbourg on September 15. It comes as EU Member States are designing national strategies to develop industrial and production facilities to reduce foreign dependencies. 

In a related blog, Internal Market Commissioner Thierry Breton said the European Chips Act should cover three elements:

  • A European Semiconductor Research Strategy to push Europe’s research ambitions to the next level;
  • A collective plan to enhance European production capacity; and
  • A framework for international cooperation and partnership.

Breton said the legislation should aim to support monitoring and resilience of the entire supply chain including design, production, packaging, equipment, and suppliers. The goal is to support the development of European “mega fabs” able to produce in high volume the most advanced and energy-efficient semiconductors, he said.

As these plans move forward, IPC will continue to underline the importance of investing in the broader electronics manufacturing ecosystem, not just semiconductors. As stated by IPC Thought Leadership Program member Matt Holzmann in a new EE Times commentary, “without other electronic components and interconnections … a computer chip cannot function. The modern world runs on electronic systems, not just computer chips.”

An IPC study in April 2021, Digital Directions, Greener Connections, concluded the electronics manufacturing industry has largely withstood the negative effects of the COVID pandemic and is poised to help drive Europe’s economic recovery and resilience, especially if government decisions take a holistic approach.

IPC will continue to work with European policymakers to discuss needed investments across the electronics manufacturing ecosystem so that Europe can truly achieve greater “tech sovereignty.” 

 

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