Circuits Assembly Online Magazine - Features

PENANG, MALAYSIA – Several companies are taking steps ranging from freezing hiring to shortening their working weeks in response to lower demand for electronics, local officials say.

Agilent Technologies and Jabil Circuit will close their factories in Bayan Lepas between Christmas and New Year, Federation of Malaysian Manufacturers northern branch chairman Datuk O.K. Lee said, according to published reports. Others are reducing their workweek from five days to four.

ST. PETERSBURG – Workforce reductions will hit Jabil Circuit’s headquarters next month as the Top Tier EMS firm will axe some 150 employees, or roughly 7.5% of the site’s staff, a local paper is reporting.

NEW YORK -- Alcatel-Lucent is pulling most of its production now outsourced to Celestica, Flextronics and Sanmina-SCI back in house, Credit Suisse analysts are reporting.

The move will take nearly $2 billion out of the hands of the major contract assemblers. Instead, production will take place at Alcatel Shanghai Bell.

JASPER, IN – The economic decline will shakeup the OEM programs sought by EMS companies, Kimball International's top executive said.

"The financial crisis and the economic slowdown will cause those companies larger than we are to push down and to try to serve our space. It will bring more margin pressure in our markets," Kimball president and chief executive Jim Thyen said on the company's quarterly conference call with analysts.

Isola and ITEQ Settle Patent DisputeCHANDLER, AZ -- Isola Group SARL, a top supplier of printed circuit board laminates, today announced a settlement in its patent dispute with Iteq Corp.

Under terms of the agreement, Iteq shall not make, use, sell, offer for sale, or distribute its product 200DK or any other products that fall within the scope of any claims of the R.O.C. invention patent Nos. 142122 and 123529 and US Patent Nos. 6,187,852, 6,322,885 and 6,509,414 anywhere in the world.

Iteq further admits the validity and enforceability of the patents at issue, Isola said.

Financial details of the agreement will not be disclosed, Isola said.

Isola is one of the world's three largest suppliers of laminates and other base materials.

VANCOUVER, BC – Northstar Electronics reported third-quarter revenues fell 1.2% to $676,149 versus last year. The net loss widened 638% to $332,604 on program certification startup costs.

Year-to-date revenues are up 26% to $1.7 million, although the net loss has widened 120% to $1 million.