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PALO ALTO -- In a report released on Forbes.com, research firm Banc of America Securities said Agilent Technologies' new management may consider spinning off its Automated Test or Semiconductor Products businesses.
 
Banc of America said: "These businesses have the lowest operating margins and suffer the biggest swings in revenues making them more difficult to manage."
 
The group cautioned that spinning off low margin businesses may not help the stock price.
 
"The remaining businesses will deliver a higher blended margin," the research firm said. "But operating margins for the remaining businesses will be at or below comparable companies in those segments."

Agilent's representatives declined to comment, citing a company policy to "not endorse or respond to any third-party research or opinions."
 

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WASHINGTON - U.S. Congressmen are taking a more open view to pleas by electronics manufacturers to pressure China to revalue its currency.

"I think the Representatives are becoming attuned to manufacturing and our industry," Matt Holzmann, president of Christopher Group, told Circuits Assembly. "There's a growing awareness that [manufacturing] is our middle class."

 

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ROUND ROCK, TX - The United States Department of the Interior's National Park Service has chosen Dell to immediately remove and recycle more than 2,000 computer systems.

"We are standardizing on Dell Asset Recovery Services because of the commitment from Dell to recycle these systems in accordance with Environmental Protection Agency standards," said Dom Nessi, chief information officer for the National Park Service. "We were spending lots of time coordinating the disposal of our outdated computers which was difficult to manage, provided little return on investment and caused concern about where they were ending up."

Dell could not confirm the makes of the systems to be recycled, but said it does recycle any make or model. The company is in talks with the NPS regarding future computing needs.

The National Park Service previously relied on its own processes to store, donate or auction its outdated computer systems. By choosing quality Dell services, the National Park Service is creating an easier way to properly dispose of older technology.

Government officials said Dell's willingness to work with minority and women-owned businesses to help refurbish and recycle technology products also was important in their decision process.

"The National Park Service employees can now turn over their equipment disposal function to Dell so they can focus on serving their community," said Hord Tipton, CIO for the Department of the Interior.  "Our partnership with Dell will bring more value to our employees and constituents by helping us be more environmentally aware while also saving time and money."

Dell's ARS unit disposes of used computer equipment and peripherals. The unit  "contribute(s) to the overall services business revenue," a Dell spokesman told Circuits Assembly.

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TOKYO - UMC Electronics, a large EMS provider based in Japan, will open a second plant in China to meet growing demand.

The company will install a reported 100 SMT lines in the plant, according to a report in a Japanese language publication translated by Dominique Numakura's EPTE newsletter.

UMC expects sales of 52 billion yen this year, the report said.
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SAN JOSE -- North American-based manufacturers of semiconductor equipment posted a 90-day moving average of $1 billion in orders in April and a book-to-bill ratio of 0.80, signaling a likely slowdown ahead, according to SEMI.

A book-to-bill of 0.80 means that $80 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in April was $1 billion, up 1.5% above revised March figures of $988.4 million but down 37% year-on-year.

The three-month average of worldwide billings in April was $1.25 billion, down 1.6% from revised March levels and 10% from a year ago.

"A minor decrease in billings and a commensurate increase in bookings slightly raises the book-to-bill ratio," said Stanley T. Myers, president and CEO of SEMI. "However, we are in a stasis period, where we have yet to see a significant change in business for North American-based providers of new semiconductor manufacturing equipment."

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BALTIMORE -- North American production of printed circuit boards will be flat this year, a leading analyst predicted.

Speaking Thursday at IPC's semiannual market research meetings, Dr. Hayao Nakahara said that production of circuit boards in North American rose 11% to about $5 billion last year, but that 2005's soft start makes it unlikely that growth will be achieved this year.

Dr. Nakahara, a PCD&M columnist who is widely recognized as the world's top authority on PCB production, said that North American-based PCB makers produced $890 million worth of high technology boards worldwide last year. Dr. Nakahara defined high technology as boards of 18 or more layers. The U.S. remains the top producer worldwide of such boards, with a 54% share, Dr. Nakahara said.

The figures do not include backplanes; the U.S. built $300 million worth of backplanes in 2004; about half the worldwide total, according to Dr. Nakahara.

However, North America's share of the overall PCB market is 14%, down from about 40% in 2000. Most of North America's loss has been China's gain: the nation has surged to 25% share, up more than 15 points during that period.

From 1995 to 2000 North American companies spent $4.8 billion on acquisitions of PCB capacity. Of that sum, just $1 billion worth remains open, Dr. Nakahara said.

PCB Production Forecast, 2005-07
                2005 2006 2007

China         34.0 26.0 16.0

N. America     6.0 2.0 1.0

Japan         1.0 1.2 1.4

Europe         1.0 1.0 1.0

S. Korea       22.0 15.0 10.0

Taiwan         15.0 7.0 5.0

Thailand       5.5 4.0 4.0

Source: N.T. Information Ltd., May 2005

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