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LOS ALTOS, CA – World equipment production demand will slow somewhat this year, rising 6.8% after a 9.1% advance in 2006, according to the April Henderson Ventures forecast. The research firm predicts growth of 7.9% and 7.2% in 2008 and 2009, respectively.
 
Electronics industry statistics for the 1998-2006 period show that the world market has been anything but placid. The industry has been seasonal in nature, evidenced by substantial jumps in second-half shipments during most years.
 
When comparing year-to-year results, the news is sobering, the research firm adds, despite the sharp climb in dollar values during the second half of 2006. The three-month moving average growth rate peaked at about 15% in December 2005. Since then, the curve has fallen sharply. January 2007 came in at 7.7%. Anecdotal reports suggest February will be weaker.
 
The 12-month moving average growth rate finished the year at about 10%. But monthly statistics suggest that 2007 growth will be substantially slower than 2006.
 
SINGAPOREFlextronics reported fourth quarter net sales of $4.7 billion, a 32% increase year-over-year. Net income for the same quarter was $121 million, an increase of 181% over $43 million in the fourth quarter.

For fiscal 2007, sales were $18.9 billion, a $3.6 billion increase over fiscal 2006 – a record high. Net income improved to $509 million, compared to $141 million in 2006.
 
In December, the contract manufacturer acquired Roseville-based International DisplayWorks Inc.

LYON, FRANCE – A recent market study from Yole Developpement reveals that the global microelectromechanical systems industry reached almost $6 billion in 2006, and is growing at a CAGR of 14%. The trend toward more MEMS use in consumer applications and higher volumes in the automotive industry are driving the move from 6" to 8" wafers, the company says.
 
The report states most new companies are fabless or "fab-lite," contracting out to existing MEMS- or IC-manufacturing infrastructures.
 
Texas Instruments ranked first in the top 10 MEMS producers in sales, followed by Hewlett-Packard, Robert Bosch, Lexmark, Seiko Epson, STMicroelectronics, Canon, Freescale, Analog Devices and Denos, according to the research firm.

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