SHANGHAI -- China yesterday assented to longstanding calls to revalue its currency, a decision that could have major repercussions for manufacturing and other industries elsewhere.

Critics of the former fiscal policy hailed the move.

With the yuan now in play, most feel that its value will rise relative to the dollar, thus raising the value of China's goods and services abroad. The effect: the price advantage companies have in making products in China will dissipate.

“The NAM has almost single-handedly put this issue on the front burner and has been pressuring for greater Chinese currency flexibility for almost two years,” said NAM president John Engler. “We are pleased that China has now moved away from a fixed dollar peg to what could be described as a ‘crawling peg’ based on a basket of currencies.

“China’s new currency system offers the possibility for continued upward movement of the yuan in the coming weeks and months, and that is what we will be looking for,” Engler said.

“While the initial 2.1% revaluation is inadequate, we view it as the beginning of what should be a significant revaluation” Engler said. “China’s new system appears to allow re-valuing the yuan as much as three-tenths of a percent each day — meaning it could move a much as one percent every three days.

“By October, when the next Treasury Department report on currency manipulation is due, we hope to see that China’s currency has moved significantly enough to begin correcting long-standing trade distortions.

“Today’s announcement by the Chinese authorities has the potential for beginning to correct the huge trade imbalances that have been created by distorted currencies – or it fall short if the crawling peg is operated too cautiously,” said Engler. “But for now, we are pleased that the fixed peg is gone and that a new system has been created. We hope everyone will join us in urging China to use it in a manner that truly reflects market pressures.

“China’s move will also help address our larger trade deficit with all Asia. The Chinese yuan has been holding down other Asian currencies, and the NAM has believed that Chinese action would result in upward movement of the other currencies as well,” Engler said. “Malaysia’s announcement that it will also break its peg to the dollar is, we hope, just the first of many similar announcements to come.”

“I commend President Bush and Treasury Secretary John Snow for their resolution and strong leadership,” Engler said. “Their steadfastness made this day possible.”

Teddington, UK –The National Physical Laboratory (NPL) has created a method for generating materials data from lead-free solder joints under shear with geometries and dimensions mirroring those used in current assembly technology. Such data is important for future FEA modelling.

Lead-free solder does not behave in the same way as lead-containing solder under accelerated thermocycling testing. In particular, the joint is in shear whereas creep data have traditionally been obtained under tensile conditions. This is complicated by the decreasing volume of solder used in electronics interconnection.

Franklin, MA –  Speedline Technologies has launched a new Web log (aka “blog”) where the company’s leaders will comment on pressing issues in semiconductor manufacturing and PCB assembly.

At the site (speedlinetech.com/blog), company experts will share insight, technical know-how and personal observations on issues including: lead-free, productivity, development, inspection, globalization and miniaturization. 

Gerald Pham-Van-Diep, director of advanced development, has posted the first entry. Pham-Van-Diep sees the blog not only as an exchange of ideas, but as an open structure channel to share personal observations directly with his customers and the industry.