17 Nov 2023 -

Optimism in Electronics: ECIA survey points to November sales boost

semi fabrications

The electronics industry is poised for a rebound, as indicated by the October survey results from the Electronic Components Industry Association (ECIA). Following a period of underperformance since March 2023, the latest sales sentiment survey suggests a positive turn is on the horizon.

The ECIA’s October survey reports a notable improvement in sales sentiment, breaking a trend of disappointing results seen in previous months. While the July to September surveys forecasted component sales sentiment in the range of 94.0 to 94.8, the actual figures fell short, landing between 86.7 and 90.3. This discrepancy averaged 5.9 points below expectations over August, September, and October.

However, there’s a silver lining. Dale Ford, the ECIA’s Chief Analyst, highlighted that October’s sales sentiment score rose by 2.1 points to 88.8, surpassing September’s figures. Ford remains optimistic, projecting that November could witness a major surge in overall component scores, potentially exceeding 100. Such a performance would mark the strongest outcome since June 2022.

In the long term, the ECIA shares a positive outlook. The continued introduction and market adoption of innovative technologies are expected to drive corporate and consumer demand for next-generation products. This optimism is crucial for the electronics sector, which constantly evolves with technological advancements.

There are other positive signs that the industry’s slump may have bottomed out as electronics manufacturers rebuild inventories after several quarters of clearing excess inventory caused by a sudden drop in demand after the pandemic. Wafer foundry GlobalFoundries forecast fourth-quarter profits higher than analysts expected, showing that the semiconductor industry’s oversupply is easing. In addition, both Intel and AMD said that the personal computer (PC) market, which is the main source of revenue for semiconductor manufacturers, is recovering.

“While the global economic and geopolitical landscape remains uncertain, we are working closely with our customers to support their efforts to reduce inventories,” said Thomas Caulfield, CEO of GlobalFoundries.

Thousands of senior engineers and procurement professionals subscribe to our LinkedIn Market Intel newsletter – get yours here

For more help with looking at supply chain options, contact Astute Electronics

Related News

14 Jun 2024 - Defence

Webinars for Defence, Military, and Aerospace Engineers 

Read more

12 Jun 2024 - General

Electronics industry surges forward into 2025

Read more

07 Jun 2024 - General

Nvidia’s dominates – for now. A look at alternatives.

Read more

06 Jun 2024 - General

The CHIPS Act’s $39 billion challenge: building Fabs is easy, finding talent is not

Read more

05 Jun 2024 - Defence

New Events Series for Defence, Military, and Aerospace Engineers 

Read more

04 Jun 2024 - General

What is Taiwan’s Silicon Shield, and is it so tough?

Read more