Circuits Assembly Online Magazine - Features

SAN JOSE, CA – Worldwide economic turmoil in 2008 severely impacted global semiconductor sales, resulting in the first year-on-year drop in sales since 2001, the Semiconductor Industry Association reported today.

Total sales for the year were $248.6 billion, down 2.8% compared to 2007.

BRUSSELS – A series of proposed revisions to ROHS and WEEE calls for a sea change in how mandatory take-back targets are set, and adds medical devices to its list of covered end-products.

The European Commission in December proposed adding two categories of equipment (http://ec.europa.eu/environment/waste/weee/pdf/com_2008_809.pdf), heretofore known as categories 8, medical devices, and 9, monitoring and control instruments.

The RoHS Directive mandates periodic EC reviews. The proposed changes are the result of stakeholder input gathered in 2007 and early 2008.

No new substances are proposed for elimination, however.

The proposed WEEE revisions would alter mandatory recycling targets to a sum equal to 65% of the average weight of electrical and electronic equipment placed on the market over the two previous years in each Member State. The collection target is currently 4 kg per person per year, which fails to take into consideration the variance in electronics consumption from nation to nation, the EC said.

The recycling and recovery targets of such equipment now include the reuse of whole appliances, and weight-base targets will increase by 5%. It is also proposed to set targets for the recovery of medical devices. These items were omitted from the original directive because of concerns over the reliability of lead-free solders.

Any exemptions to Categories 8 and 9 will be subject to a four-year maximum validity period, while substitutes are researched and implemented.

The EU will also take up the matter of so-called “priority” substances considered to pose environmental concerns. These chemicals are covered under the REACH Directive, and the latest proposal looks at how RoHS can better tie in with the REACH methodology.

SPOKANE VALLEY, WA -- Key Tronic Corp. reported December quarter revenue of $47 million, down 7.5% year-over-year. Net income was $100,000, down 94% from a year ago.

ITASCA, IL -- Illinois Tool Works, the parent company of several leading electronics equipment and materials suppliers, reported fourth-quarter revenues fell 6% and operating income dropped 33% from last year.

For the quarter, margins fell 450 basis points to of 11.3% and operating cash flow was $509 million.

ITW's power systems and electronics segment revenues fell 9.6% and operating income fell 27.7%. Base revenues -- sales from continuing operations -- were down 10.8%, primarily on a 9% drop in the company's welding businesses. Operating margins were 15.4%, down 380 basis points from the prior year period with base margins declining 220 basis points and acquisitions diluting margins 130 basis points.

For the year, revenues increased 6.7% on acquisitions and favorable currency translations. Operating income was down 4.5% and margins were down 180 basis points to 14.7%. Free operating cash flow was $1.9 billion, or 123% of net income.

ITW is parent company to Speedline Technologies, Vitronics-Soltec, Chemtronics, Kester Solder and other electronics assembly suppliers.

FT. COLLINS, CO – RPM Electronics Inc. will close by the end of April and lay off its remaining 70 workers.

As reported by Circuits Assembly in December, the electronics manufacturing company previously was expected to close in February.

In published reports, RPM chief executive Chuck Mann cited the loss of business from RPM’s two main customers, Advanced Energy and Plasmon. Those OEMs made up 55% of RPM's sales and have started outsourcing its work to China.

Mann is also COO of RAD Electronics, which acquired RPM in March 2008.

ELKHART, IN – CTS Corp. reported fourth-quarter net earnings fell 26% to $5.7 million on a 9% drop in sales. The results include restructuring and related costs.

Global Semi Sales Fell 2.8% in 2008

Proposed RoHS Revisions to Include Medical Devices

Key Tronic's Sales Slip, But Profits Stay Positive

ITW Sees Sales Drop 6% in Q4

RPM Updates Closing Plan

CTSâ€™s EMS Sales Down 2% in Q4

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