Chart 1
Japanese Yen vs. U.S. Dollar
140
Weak Yen
130
120
110
100
90
80
Strong Yen
70
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
http://research.stlouisfed.org/fred2/series/TWEXBMTH
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Chart 2
Japan "Purchasing Managers" Index
Diffusion Index, >50 = Growth
60
55
PMI
50
45
40
30
Jan
Jun
Nov
Apr
Sep
Feb
Jul
Dec
May
Oct
Mar
Aug
Jan
Jun
Nov
Apr
Sep
Feb
Jul
Dec
May
Oct
Mar
Aug
Jan
Jun
Nov
Apr
Sep
Feb
Jul
Dec
May
Oct
Mar
Aug
35
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
Yen Billion
800
Elec Application Equip
Electronic Measuring Instrumentation
Communications Equipment
Computers & Related Equipment
Electronic Business Machines
Consumer Electronic Equipment
700
600
500
400
300
200
100
0
1 6 11 4 9 2 7 12 5 10 3 8 1 6 11 4 9 2 7 12 5 10 3 8 1 6 11 4 9 2 7 12 5 10 3 8 1 6 11 4 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
by Month 2000 to Present
Yen Billion
2000
Elec Application Equip
Electronic Measuring Instrumentation
Communications Equipment
Computers & Related Equipment
Electronic Business Machines
Consumer Electronic Equipment
1800
1600
1400
1200
1000
800
600
400
200
0
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
JEITA www.jeita.or.jp/
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015 2016
Chart 5
Semiconductor Shipments to Japan
vs. Japanese Electronic Equipment Production
3/12 Rate of Change (Yen converted at fluctuating exchange)
1.6
Semiconductors
1.4
Equipment
1.2
1.0
0.8
0.4
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
0.6
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
Total $ Semiconductor Shipments from All Countries to Japan www.sia-online.org/,
JEITA www.jeita.or.jp/
16
Chart 6
Japan Integrated Circuit & Discrete Semiconductor
Domestic Production
Yen (million)
450,000
IC
Discrete
400,000
350,000
300,000
250,000
200,000
150,000
100,000
0
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
50,000
00
01
02
03
04
05
06
07
08
Calendar Year
http://www.jeita.or.jp/
09
10
11
12
13
14
15
16
Chart 7
Japan Passive Component
Domestic Production
Yen (million)
140,000
120,000
100,000
80,000
60,000
40,000
0
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
20,000
00
01
02
03
04
05
06
07
08
Calendar Year
http://www.jeita.or.jp/
09
10
11
12
13
14
15
16
Chart 8
1.6
Japanese Electronic Component & Device
Production
3/12 Rate of Change
Devices
Components
1.4
Zero Growth
1.2
1.0
0.8
0.4
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
Mar
Jul
Nov
0.6
01
02
03
04
05
06
07
08
09
Calendar Year
JEITA www.jeita.or.jp/
10
11
12
13
14
15
16
Chart 9
Japan PCB Production
100
Yen (Billions)
90
80
70
60
50
40
2015/2014
+6.1%
30
20
0
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
10
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
Calendar Year
JEITA
Chart 10
Japan PCB Production
1.8
3/12 Rate of Change
1.6
1.4
1.2
1.0
0.8
0.4
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
May
Jan
Sep
0.6
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
Calendar Year
JEITA
Chart 11
1.8
Japan PMI PCB Leading Indicator
vs. Japan PCB Shipments
3/12 Rate of Change
PCB Shipments
1.6
PCB Leading Indicator
Zero Growth
1.4
1.2
1.0
0.8
0.4
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
0.6
05
06
07
08
09
10
11
Calendar Year
Source: Custer Consulting Group
12
13
14
15
16
Chart 12
26-Year History of 2H/1H
IC Market Growth
Year
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
2016F
1990-2016F
Average
WSTS, IC Insights 10/16
2H/1H % Change
11.1%
1.9%
14.6%
17.2%
19.9%
15.7%
-6.3%
3.5%
7.5%
22.4%
13.9%
-20.7%
12.2%
23.2%
8.4%
9.2%
9.8%
12.4%
-6.0%
33.0%
6.6%
-1.9%
3.6%
8.3%
10.2%
-1.2%
12.3%
8.9%
Chart 13
N American Semiconductor Equipment Industry
Book/Bill Ratio
1.6
B/B (3-month Avg)
Production Equipment
Not Chips
1.4
1.2
1.0
0.8
0.4
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
Feb
Jun
Oct
0.6
99
00
01
02
03
04
05
06
07
08
09
10
11
12
SOURCE Semiconductor Equipment and Materials International
http://www.semi.org
13
14
15
16
Chart 14
3,500
N American Semiconductor Equipment
Industry Shipments & Orders
$M (3-Month Average)
Shipments
3,000
Orders
2,500
2,000
1,500
1,000
0
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
1
5
9
1
5
9
1
5
9
1
5
9
1
5
9
1
5
9
1
5
9
1
5
9
500
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
SOURCE Semiconductor Equipment and Materials International
http://www.semi.org
10
11
12
13
14
15
16
China Networking Market Share
Q2’16
Chart 15
18.6%
48.1%
10.8%
5.9%
3.7%
2.9%
9.9%
Q2’16 Total $2,689 M
IDV 10/16
Huawei
Others
ZTE
Nokia
Ruijie
Cisco
H3C
China Networking Market Size
Chart 16
$M
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
2,689
2,493
2,486
2,117
1,961
H1
H2
H1
2014
Total
WLAN
Router
Switch
IDC 10/16
1,961
178
700
1,083
H2
H1
2,486
255
885
1,345
2016
2,689
257
1,187
1,245
2015
2,493
202
1,054
1,238
2,117
180
898
1,039
IT Spending, World
Chart 17
1,410
1,384
Communications
Services
943
900
IT Services
357
333
Software
2017
2016
177
173
Data Center
Services
600
597
Devices
0
Gartner 10/2016
400
800
$ Billion
1,200
1,600
Chart 18
U.S. Industrial Production
Index (2012=100)
IP
110
105
100
95
90
85
80
75
70
65
60
1 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 4 7101 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
www.economist.com + Eurostat
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
Canada
USA
China
India
Malaysia
Vietnam
Singapore
S Korea
Taiwan
Thailand
Japan
- 0.7 Jul
- 1.0 Sep
+ 6.1 Sep
- 0.7 Aug
+4.9 Aug
+ 7.6 Sep
+ 0.1 Aug
+ 2.3 Aug
+ 7.7 Aug
+ 3.1 Aug
+ 4.5 Aug