ESPOO, FINLAND – Elcoteq's second-quarter net sales totaled 436 million euros, down 7% sequentially and 52% year-over-year.
 
The operating loss was 11.5 million euros, compared to an operating loss of 38.3 million euros in the first quarter, and operating income of $600,000 last year. Personal communications contributed 59% of the firm’s net sales, with home communications making up 16% and communications networks 25%.
                  
Personal communications' net sales have decreased from last year mainly due to manufacturing reallocation decisions made by Nokia, says Elcoteq.
 
As previously reported by CIRCUITS ASSEMBLY, Elcoteq plans to sell the majority of the machinery, equipment and materials of its Tallinn, Estonia, manufacturing operations to Ericsson. The agreement includes the transfer of the lease agreement. The transaction value is approximately 30 million euros. The deal includes 1,200 of Elcoteq's 1,600 employees in Tallinn.
 
Third-quarter net sales are expected to decrease slightly sequentially, due to the partial Tallinn business transfer to Ericsson.
 
1 euro = US$1.4243

 

TISZAUJVAROS, HUNGARY – Jabil Circuit will hire 600 to 700 workers at its plant here as demand for new products ramps, according to a local paper.
 
Zoltan Kiraly, CEO of Jabil’s Hungarian unit, told the newspaper the firm might hire even more employees next year.
 
Jabil had laid off 900 at the site in February as orders fell.

HELSINKI – Ailing EMS firm Elcoteq will receive a cash infusion of China-based Kaifa of up to 50 million euros ($71 million).
 
In a press release today, Elcoteq said it would receive the cash from Kaifa, part of China Electronic Corp., in exchange for an undetermined number of shares. The deal would make CEC its largest shareholder, with a stake of at least 30%. The total size of the investment depends on the successful restructuring of Elcoteq's debt, with a final agreement expected to be signed in the third quarter.
 
The world’s sixth largest EMS company at the end of 2008, Elcoteq’s second-quarter sales dropped more than 50% to 436 million euros and the company posted an operating loss of 11.5 million euros in the second quarter. It was hurt by Nokia’s decision to build products in-house for the foreseeable future.
 
CEC has been Elcoteq's joint-venture partner in China since 2002. .
 

PORTO ALEGRE, BRAZIL – CEITEC S.A., a developer and producer of application-specific ICs, has opened Latin America’s first IC design center.
 
The company will add 60 engineers who will design RFID, digital media and wireless communication chips for its fabrication facility now ramping up for production.
 
The Brazil government’s total investment is almost $210 million.
 
Newly appointed CEITEC president Eduard Weichselbaumer will lead the firm’s efforts developing markets for the chips.

 

GLENVIEW, Ill. (AP) -- Illinois Tool Works reported second-quarter revenue dropped 26% year-over-year to $3.39 billion, and earnings fell 67% to $176.6 million.

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SAN JOSE – The 90-day moving average orders for North America-based semiconductor equipment manufacturers was $323.4 million in June continuing the sector's five-month long recovery.

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TORONTO -- Adeptron Technologies has signed a deal to provide electronics manufacturing services to a major division of an OEM of scientific instruments and laboratory automation and integration equipment. The deal will be worth $1 million in 2010, with sales having already started in 2009.

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OLATHE, KS -- Elecsys reported fourth-quarter sales plunged 41% to $4.08 million for the period ended April 30.

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SAN JOSE -- A stay order permitting several large semiconductor companies to sell chips said to infringe on Tessera patents has expired, and the International Trade Commission thus far has chosen not to intervene.

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SAN JOSE – 2009 will be a blip on the EMS market, a research firm said Monday.

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BUCKS, UK – The Smart Group, a group of SMT engineers in the UK, will kick off its Silver Anniversary with a special conference and exhibition in October.
 
The event, which takes place in Oxfordshire on Oct. 22, will feature a number of speakers, including headliners Doug Pauls and Dave Hillman of Rockwell Collins, and a tabletop exhibition.
 
Other events are being planned for the year, culminating in a conference and exhibition next fall.
 
Engineers formed the Smart Group to meet the challenge of SMT. The vision has changed to embrace all the new technology developments and environmental concerns, including design, PCB manufacture, all components, assembly, test and reliability, rework and repair.
 
Further events will be announced at www.smartgroup.org. 

 

KUALA LUMPUR – Unisem (M) Berhad has entered into a cross-licensing agreement with ASAT Ltd., permitting each to manufacture and market the other company’s leadless packaging technologies.

Packaging technologies included are Unisem’s etched leadless package, taped leadframe package and ASAT’s thin array plastic package and thermal leadless array package.

No financial terms were disclosed.

ASAT provides semiconductor package design, assembly and test services. Unisem provides semiconductor assembly and test services.