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.
EL SEGUNDO, CA – While growth in the overall consumer electronics equipment and related semiconductor markets is undergoing a slowdown, analysts at iSuppli Corp. say there is hope for more profitability for personal media players/MP3 players.
The OEM factory revenue CAGR for consumer electronics products will decelerate to 3.6% from 2007 to 2011, down from 8.9% between 2001 and 2006, the firm said. The CAGR for the consumer electronics-oriented semiconductor market will slow to 4.4% for the period between 2007 and 2011, down from 10.7% from 2001 through 2006.
Worldwide consumer-electronics product OEM factory revenue will rise to $393.4 billion in 2011, up from $349.9 billion in 2007. Associated semiconductor revenue will increase to $69.1 billion in 2011, up from $58.1 billion in 2007, according to iSuppli.
Despite the overall slowdown, mobile products are generating strong growth, with PMP/MP3 players leading the way, said the firm.
Global PMP/MP3 player unit shipments will rise to 268.6 million units in 2011, expanding at a CAGR of 13% from 128.7 million units in 2005, the company predicted. Global PMP/MP3 factory revenue will rise to $21.5 billion by 2011, growing at a CAGR of 7.4% from $14 billion in 2005.
According to the firm, the strong growth of the PMP/MP3 market is the result of increased Internet connectivity, growing content availability and declining prices for key components like NAND flash memory and system-on-chip (SoC) controllers.
iSuppli warned that PMPs/MP3s face rising competitive pressure from mobile phones, which are adopting music-playback. In 2007, music-enabled mobile phones will out-ship PMP/MP3 players by a factor of nearly 3:1, and by 2011, that gap will expand to 4.5:1, the firm said.
TAIWAN – In an attempt at a major turnaround for BenQ Corp., the Taiwanese ODM's board of directors approved a plan to spin off its branded business and morph to a fabless model.
BenQ will be renamed Jia Da Corp., while the spinoff will take the name BenQ. The new company will be a fully owned subsidiary of Jia Da Corp.The plan is subject to approval by shareholders on June 15; the company's board has set the spinoff for Sept. 1.
SANTA CLARA, CA – Sun Microsystems Inc. has reported third-quarter net income of $67 million, compared with a loss in the third quarter last year of $217 million.
The Santa Clara-based company reported weaker-than-expected revenue of about $3.3 billion, up slightly from about $3.2 billion year-over-year. Total gross margin as a percent of revenues was 44.5%, an increase of 1.5%, compared with the third quarter of 2006.
The Santa Clara-based company reported weaker-than-expected revenue of about $3.3 billion, up slightly from about $3.2 billion year-over-year. Total gross margin as a percent of revenues was 44.5%, an increase of 1.5%, compared with the third quarter of 2006.
Deutsche Bank Equity Research says Sun may get a lift from its recent advanced product line release, but expects x86 growth to slow further as customers wait for Sun's Intel-based x86 refresh later this summer. VMware-driven consolidation continues to pressure x86 demand, says the firm.
Deutsche Bank suggests more restructuring will be required for Sun to hit long-term margin targets. They believe it will prove difficult for Sun to grow into its existing cost structure because of the highly competitive nature of the server market.
JUAREZ -- Elcoteq will shutter its manufacturing facility here and move production to the company's plants in Monterrey and China by year-end. The EMS company will take a one-time charge of 9 million euros.
All ongoing programs in Juarez will be finished as planned, the company said.
SAN JOSE, CA – Global EMS company Sanmina-SCI Corporation today reported revenue of $2.61 billion for the second quarter ended March 31, down from $2.78 billion in the previous quarter, also down from $2.67 billion in the second quarter of 2006.
Operating income was $40.2 million or 1.5% of revenue, compared to $70.6 million, or 2.5% of revenue in the prior quarter and $66.3 million, or 2.5% of revenue in the same period a year ago. Gross profit was $139.2 million or 5.3% of revenue, compared to $169.9 million, or 6.1% in the prior quarter.
For the second quarter 2007, the company reported a net loss of $26.1 million, versus net income of $28.3 million for the first quarter, and a net loss of $76.1 million year-over year.
Deutsche Bank Equity Research states the company continues to lose share in the EMS industry. The research company also said they are encouraged by Sanmina’s focus on restructuring and decision to divest non-core operations, but believe operational miscues, restructuring charges and market share losses will likely continue indefinitely.
The research firm adds that demand from Sanmina’s communications and high-end computing customers were weak in the quarter (-12% and -11%, respectively), while demand for Sanmina-SCI higher margin PCBs and enclosures also disappointed (both down 20%).
