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TAIWAN – Taiwanese contract IC foundries are expected to produce $3.66 billion worth of product, up 16.9% sequentially, thanks to growing demand, according to the Taiwan Semiconductor Industry Association.

The sector began recovering in the second quarter, with an output of $3.13 billion, up 13.2% sequentially, according to TSIA.

TSIA predicts third-quarter output will increase 5.5% year-over-year. The trend will follow decreases in inventory brought about by growing demand for PCs, cellphones and other consumer electronics, as a result of positive seasonal sales and outsourcing of orders for nanotech products reported by integrated device manufacturers, the report said.

ENDICOTT, NY — The U.S. Department of Defense has increased an existing contract with Endicott Interconnect Technologies by $19 million to cover additional multichip module assemblies and equipment, the company reports.

EI recently bought a flip-chip packaging line, including a screen printer, placement machines, reflow oven and AOI tools to build the additional MCMs.

TAIWAN – Taiwan-based Foxconn has unveiled its first software base in mainland China, according to a report from ChinaTechNews.com. This comes after the company signed a letter of intent with the municipal government of Nanjing earlier this year.

According to the report, CEO Terry Guo said the company chose the Pukou district of Nanjing for its facility, which will design wireless communications networks, enterprise information security and medical software.

The company plans to recruit 30,000 software engineers in five years for the Nanjing site, according to media reports. The site is now operational with more than 200 software developers.