Chart 1 Japanese Yen vs. U.S. Dollar 140 130 Weak Yen 120 110 100 90 80 70 Strong Yen 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 http://research.stlouisfed.org/fred2/series/twexbmth
Chart 2 Japan "Purchasing Managers" Index Diffusion Index, >50 = Growth 60 55 50 45 40 35 30 Dec Aug Dec Aug Dec Aug PMI 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Nomura/JMMA
Chart 3 Japan Electronic Equipment Production by Month 2000 to Present 800 700 600 500 Yen Billion Elec Application Equip Electronic Measuring Instrumentation Communications Equipment Computers & Related Equipment Electronic Business Machines Consumer Electronic Equipment 400 300 200 100 0 1 6114 9 2 7125103 8 1 6114 9 2 7125103 8 1 6114 9 2 7125103 8 1 6114 9 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 JEITA www.jeita.or.jp/
Chart 4 Japan Electronic Equipment Production Yen Billion 2000 1800 1600 1400 1200 1000 800 600 400 200 0 by Month 2000 to Present Elec Application Equip Electronic Measuring Instrumentation Communications Equipment Computers & Related Equipment Electronic Business Machines Consumer Electronic Equipment 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 JEITA www.jeita.or.jp/
Chart 5 Semiconductor Shipments to Japan vs. Japanese Electronic Equipment Production 1.6 1.4 3/12 Rate of Change (Yen converted at fluctuating exchange) Semiconductors Equipment 1.2 1.0 0.8 0.6 0.4 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Total $ Semiconductor Shipments from All Countries to Japan www.sia-online.org/, JEITA www.jeita.or.jp/
Chart 6 Japan Integrated Circuit & Discrete Semiconductor Domestic Production 450,000 400,000 350,000 Yen (million) IC Discrete 300,000 250,000 200,000 150,000 100,000 50,000 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 http://www.jeita.or.jp/ Calendar Year
Chart 7 140,000 Japan Passive Component Domestic Production Yen (million) 120,000 100,000 80,000 60,000 40,000 20,000 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 http://www.jeita.or.jp/ Calendar Year
Chart 8 1.6 Japanese Electronic Component & Device Production 3/12 Rate of Change 1.4 Devices Components Zero Growth 1.2 1.0 0.8 0.6 0.4 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 JEITA www.jeita.or.jp/ Calendar Year
Chart 9 Japan PCB Production 100 Yen (Billions) 90 80 70 60 50 40 30 20 2015/2014 +6.1% 10 0 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 JEITA Calendar Year
Chart 10 Japan PCB Production 1.8 3/12 Rate of Change 1.6 1.4 1.2 1.0 0.8 0.6 0.4 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 JEITA Calendar Year
Chart 11 Japan PMI PCB Leading Indicator vs. Japan PCB Shipments 1.8 3/12 Rate of Change 1.6 1.4 PCB Shipments PCB Leading Indicator Zero Growth 1.2 1.0 0.8 0.6 0.4 05 06 07 08 09 10 11 12 13 14 15 16 Source: Custer Consulting Group Calendar Year
Chart 12 26-Year History of 2H/1H IC ket Growth Year 2H/1H % Change 1990 11.1% 1991 1.9% 1992 14.6% 1993 17.2% 1994 19.9% 1995 15.7% 1996-6.3% 1997 3.5% 1998 7.5% 1999 22.4% 2000 13.9% 2001-20.7% 2002 12.2% 2003 23.2% 2004 8.4% 2005 9.2% 2006 9.8% 2007 12.4% 2008-6.0% 2009 33.0% 2010 6.6% 2011-1.9% 2012 3.6% 2013 8.3% 2014 10.2% 2015-1.2% 2016F 12.3% WSTS, IC Insights 10/16 1990-2016F Average 8.9%
Chart 13 N American Semiconductor Equipment Industry Book/Bill Ratio 1.6 B/B (3-month Avg) 1.4 Production Equipment Not Chips 1.2 1.0 0.8 0.6 0.4 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 SOURCE Semiconductor Equipment and Materials International http://www.semi.org
Chart 14 N American Semiconductor Equipment Industry Shipments & Orders 3,500 3,000 2,500 $M (3-Month Average) Shipments Orders 2,000 1,500 1,000 500 0 1 59 1 59 1 59 1 59 1 59 1 59 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 SOURCE Semiconductor Equipment and Materials International http://www.semi.org
Chart 15 China Networking ket Share Q2 16 10.8% 5.9% 18.6% Huawei Others ZTE 48.1% Nokia Ruijie Cisco H3C 3.7% 2.9% 9.9% IDV 10/16 Q2 16 Total $2,689 M
Chart 16 China Networking ket Size 3,000 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 $M 1,961 2,493 2,117 2,486 2,689 H1 H2 H1 H2 H1 2014 2015 2016 Total 1,961 2,493 2,117 2,486 2,689 WLAN 178 202 180 255 257 Router 700 1,054 898 885 1,187 Switch 1,083 1,238 1,039 1,345 1,245 IDC 10/16
Chart 17 IT Spending, World Communications Services 1,410 1,384 IT Services 900 943 Software Data Center Services 177 173 357 333 2017 2016 Devices 600 597 0 400 800 1,200 1,600 $ Billion Gartner 10/2016
Chart 18 U.S. Industrial Production Index (2012=100) 110 105 100 95 90 85 80 75 70 65 60 IP 14710147101471014710147101471014710147101471014710147101471014710147101471014710147101471014710147101471014710147101471014710147101 4 710 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 www.federalreserve.gov/releases/g17/table1_2.htm
Chart 19 Industrial Production World % Change vs. One Year Earlier Britain Czech Republic France Germany Italy Netherlands Russia Spain Euro Area + 0.8 Aug +13.1 Aug + 0.5 Aug + 2.0 Aug + 4.1 Aug + 2.2 Aug + 0.7 Aug + 6.8 Aug + 1.8 Aug www.economist.com + Eurostat Canada USA China India Malaysia Vietnam Singapore S Korea Taiwan Thailand Japan -0.7-1.0 + 6.1-0.7 Aug +4.9 Aug + 7.6 + 0.1 Aug + 2.3 Aug + 7.7 Aug + 3.1 Aug + 4.5 Aug