Latest News
ELK GROVE VILLAGE, IL – EMS provider SigmaTron International Inc. reported second-quarter fiscal 2009 revenues were $41.1 million, down 4% year-over-year.
Net income was $1.5 million, up 54% compared to the same quarter last year.
For the six months ended Oct, 31, revenues were $79.6 million, down nearly 4% year-over-year. Net income for the same period was $2.1 million, up 28.6% year-over-year.
“Unfortunately, starting the first week in November, we have seen our revenue drop approximately 30% from October's run rate. Given the condition of the economy, this slowdown comes as no surprise, and at this point, it will certainly continue for the third quarter and probably beyond. Recently, the company decided to postpone the planned expansion of its China facility, announced in July 2008, in response to the current economic conditions,” said Gary R. Fairhead, president and CEO.
Net income was $1.5 million, up 54% compared to the same quarter last year.
For the six months ended Oct, 31, revenues were $79.6 million, down nearly 4% year-over-year. Net income for the same period was $2.1 million, up 28.6% year-over-year.
“Unfortunately, starting the first week in November, we have seen our revenue drop approximately 30% from October's run rate. Given the condition of the economy, this slowdown comes as no surprise, and at this point, it will certainly continue for the third quarter and probably beyond. Recently, the company decided to postpone the planned expansion of its China facility, announced in July 2008, in response to the current economic conditions,” said Gary R. Fairhead, president and CEO.
ROGERS, CT - Rogers Corp. initiated a patent infringement complaint against Arlon Electronic Material Group for its sale in the US of Arlon TC-600 circuit board material.
The complaint claims Rancho Cucamonga, CA-based Arlon is infringing on a 1996 Rogers patent: Ceramic Filled Composite Polymeric Electrical Substrate Material Exhibiting High Dielectric Constant and Low Thermal Coefficient of Dielectric Constant.
In the complaint, Rogers demanded Arlon, a division of WHX Corp., cease manufacture, sale and distribution of its TC-600 materials.
Rogers develops and manufactures high-performance specialty material products.
The complaint claims Rancho Cucamonga, CA-based Arlon is infringing on a 1996 Rogers patent: Ceramic Filled Composite Polymeric Electrical Substrate Material Exhibiting High Dielectric Constant and Low Thermal Coefficient of Dielectric Constant.
In the complaint, Rogers demanded Arlon, a division of WHX Corp., cease manufacture, sale and distribution of its TC-600 materials.
Rogers develops and manufactures high-performance specialty material products.
PEMBROKE, BERMUDA – Tyco Electronics will lay off 2,500 staff globally, with 70 cuts coming in its Wilsonville, OR, plant, where the conglomerate employs approximately 500 workers, according to published reports.
The communication equipment maker said in November business would slow in 2009 as a result of increasing costs and the state of the economy.
The communication equipment maker said in November business would slow in 2009 as a result of increasing costs and the state of the economy.
BANNOCKBURN, IL – Assembly equipment salary budgets rose on average 7.4% for hourly workers, 5.6% for salaried employees and 3.6% for management this year, IPC said.
The association’s recent salary and wage report presents aggregate data on 41 positions and their related job descriptions. However, IPC did not disclose how many companies responded to the survey, nor did it breakout the results by region.
Benefits costs in 2007 were, on average, 23% of total wages, according to survey respondents.
IPC also published an executive compensation study, published for the exclusive use of participating member companies.
The association’s recent salary and wage report presents aggregate data on 41 positions and their related job descriptions. However, IPC did not disclose how many companies responded to the survey, nor did it breakout the results by region.
Benefits costs in 2007 were, on average, 23% of total wages, according to survey respondents.
IPC also published an executive compensation study, published for the exclusive use of participating member companies.
EL SEGUNDO – Worldwide capital spending on semiconductor manufacturing equipment in 2009 will decline to $35.2 billion, down 17.6% from 2008. This will mark the lowest level of spending since 2003, when semiconductor capital spending amounted to $33.8 billion, iSuppli Corp. said.
Following a dismal 2008, global spending on semiconductor manufacturing equipment in 2009 will fall to its lowest level in six years, as a result of weakening conditions in the chip and electronic equipment markets, according to iSuppli.
The decline in 2009 revenue will extend the downturn seen in 2008. Through the first three quarters of 2008, capital expenditures were down 15.3% year-over-year. iSuppli anticipates capital expenditures will fall 21.1% year-over-year to $42.7 billion by the end of 2008.
While the market for semiconductor manufacturing gear was showing signs of weakness in the second quarter, the extent of the market vulnerability really became apparent as the worldwide economic and financial crises flared up in the third quarter, says the firm.
“At the start of the second quarter, semiconductor equipment providers were still reeling from the sharp cuts in capital expenditures from the major memory chip suppliers,” said Len Jelinek, director and chief analyst for semiconductor manufacturing at iSuppli.
“Because of this, capital expenditures in 2008 already were depressed, with virtually no semiconductor supplier continuing to spend at historical rates. However, by the end of the third quarter, market demand virtually stopped, as global uncertainty driven by the threat of the collapse of the financial markets threw consumers into a tailspin. Companies throughout the electronic supply chain began to report declining sales and falling profits. The impact on semiconductor manufacturing was immediately apparent, with falling factory utilizations and significant reductions in capital spending, especially for capacity expansions.”
For semiconductor equipment makers, the sudden market collapse comes as a major letdown compared to previous expectations.
While the semiconductor industry as a whole remained in an overcapacity position at the start of the second quarter of 2008, there remained a strong potential to achieve supply/demand equilibrium with just a modest increase in demand. Because of this, semiconductor suppliers and chip equipment makers were looking forward to 2009 with the anticipation of modest growth, says iSuppli. Leading-edge chip manufacturers were rushing toward the 28/30 nm process technology nodes. In the background, the migration to next-generation, 450 mm wafers was becoming a hot topic.
However, these expectations flew out the window as the severity of the economic and electronics downturn became apparent in the third quarter.
Beyond the downturn, an expected key growth driver for the global semiconductor equipment industry has failed to materialize: massive capital expansions for new capacity in China. China has been unable to establish a technological manufacturing base that requires the use of advanced technologies and expensive new semiconductor manufacturing equipment, says the research firm.
Following a dismal 2008, global spending on semiconductor manufacturing equipment in 2009 will fall to its lowest level in six years, as a result of weakening conditions in the chip and electronic equipment markets, according to iSuppli.
The decline in 2009 revenue will extend the downturn seen in 2008. Through the first three quarters of 2008, capital expenditures were down 15.3% year-over-year. iSuppli anticipates capital expenditures will fall 21.1% year-over-year to $42.7 billion by the end of 2008.
While the market for semiconductor manufacturing gear was showing signs of weakness in the second quarter, the extent of the market vulnerability really became apparent as the worldwide economic and financial crises flared up in the third quarter, says the firm.
“At the start of the second quarter, semiconductor equipment providers were still reeling from the sharp cuts in capital expenditures from the major memory chip suppliers,” said Len Jelinek, director and chief analyst for semiconductor manufacturing at iSuppli.
“Because of this, capital expenditures in 2008 already were depressed, with virtually no semiconductor supplier continuing to spend at historical rates. However, by the end of the third quarter, market demand virtually stopped, as global uncertainty driven by the threat of the collapse of the financial markets threw consumers into a tailspin. Companies throughout the electronic supply chain began to report declining sales and falling profits. The impact on semiconductor manufacturing was immediately apparent, with falling factory utilizations and significant reductions in capital spending, especially for capacity expansions.”
For semiconductor equipment makers, the sudden market collapse comes as a major letdown compared to previous expectations.
While the semiconductor industry as a whole remained in an overcapacity position at the start of the second quarter of 2008, there remained a strong potential to achieve supply/demand equilibrium with just a modest increase in demand. Because of this, semiconductor suppliers and chip equipment makers were looking forward to 2009 with the anticipation of modest growth, says iSuppli. Leading-edge chip manufacturers were rushing toward the 28/30 nm process technology nodes. In the background, the migration to next-generation, 450 mm wafers was becoming a hot topic.
However, these expectations flew out the window as the severity of the economic and electronics downturn became apparent in the third quarter.
Beyond the downturn, an expected key growth driver for the global semiconductor equipment industry has failed to materialize: massive capital expansions for new capacity in China. China has been unable to establish a technological manufacturing base that requires the use of advanced technologies and expensive new semiconductor manufacturing equipment, says the research firm.
WELLESLEY, MA – The global market for electronics conformal coatings and related equipment is expected to grow from $6.6 billion in 2008 to $9.1 billion in 2013, a CAGR of 6.8%.
The conformal coating equipment/spares segment has a larger share of the market than materials, worth an estimated $5.1 billion this year, says BCC Research. This is expected to increase to $6.9 billion in 2013, a CAGR of 6.2%, says the firm.
The materials segment is worth an estimated $1.5 billion in 2008, and is expected to grow at a CAGR of 8.9% to $2.3 billion in 2013.
Conformal coatings are important for applications in consumer electronics, automotive, aerospace and medical devices. Applications for consumer electronics currently dominate the market and will continue to do so through 2013, says BCC.
Growth in the automotive segment will be driven by accelerated use of electronic monitoring, sensing and controlling devices, and computer systems in cars. Conformal coating application in aerospace is the most highly developed segment of the industry, while medical and biomedical device applications of conformal coatings will experience the highest growth of the market segments studied, according to the firm.
The conformal coating equipment/spares segment has a larger share of the market than materials, worth an estimated $5.1 billion this year, says BCC Research. This is expected to increase to $6.9 billion in 2013, a CAGR of 6.2%, says the firm.
The materials segment is worth an estimated $1.5 billion in 2008, and is expected to grow at a CAGR of 8.9% to $2.3 billion in 2013.
Conformal coatings are important for applications in consumer electronics, automotive, aerospace and medical devices. Applications for consumer electronics currently dominate the market and will continue to do so through 2013, says BCC.
Growth in the automotive segment will be driven by accelerated use of electronic monitoring, sensing and controlling devices, and computer systems in cars. Conformal coating application in aerospace is the most highly developed segment of the industry, while medical and biomedical device applications of conformal coatings will experience the highest growth of the market segments studied, according to the firm.
BUCKS, UK – SMART Group, a UK-based electronics society, has elected Keith Bryant as chairman, superseding Paul Salmon.
Bryant is European sales manager for Dage X-Ray Systems.
Bryant says he brings “a healthy dose of commercialism to the position” and cited the group’s technical advice forum, training courses and new Web site as its strengths.
ARLINGTON, VA – The Consumer Electronics Association now projects fourth quarter wholesale shipment revenues will increase by 0.1% year-over-year. The original forecast issued in October anticipated 3.5% fourth-quarter growth over 2007.
ANGLETON, TX – Contract manufacturer Benchmark Electronics Inc. said, through an alliance with Silicon Graphics Inc., it helped create the computer system for which NASA achieved the ranking of third fastest supercomputer in the world.
Benchmark worked with Silicon Graphics to manufacture Pleiades, which SGI deployed at the NASA Advanced Supercomputing facility at NASA's Ames Research Center in Moffett Field, CA. The supercomputer is expected to support the development of the space agency's next-generation space fleet, along with projects related to all other NASA mission directorates.
NASA's Pleiades system is a 51,200-core SGI Altix ICE 8200EX system, and is said to be capable of generating a theoretical peak of 609 trillion operations per sec.
Benchmark contributed product introduction services, PCB assembly, system integration and functional test to the program.
MACAO – Deswell Industries Inc. reported fiscal second-quarter nets sales of $32 million, down 16.1% year-over-year, mainly because of the continuing decline in business from the company's electronic and metallic segment.
The firm reported an operating loss of $1.7 million for the quarter, compared to operating income of $1.7 million for the same quarter of 2007.
Gross profit in the electronic and metallic segment was 11.1% of net sales, compared to 11.6% of net sales for the year-ago quarter.
Net sales for the six months ended Sept. 30 were $67.3 million, down 12.5% year-over-year.
Net income decreased $5.2 million to a loss of $382,000, compared to $4.9 million last year.
Deswell manufactures injection-molded plastic parts, components, electronic products, subassemblies and metallic products for OEMs and contract manufacturers.
EL SEGUNDO, CA – With car sales plunging, demand for automotive electronics is dropping as well, except for the key area of electronic stability control systems, whose sales are expected to continue to rise in the coming years. This will generate attractive opportunities for suppliers of microelectromechanical sensors used in these systems, according to iSuppli Corp.
iSuppli recently reported that 2008 is expected to be the worst year in nearly a generation for the U.S. car market, with shipments of just 13.3 million units, down 17.7% year-over-year. Western European auto sales are expected to decline to 15.4 million, down 8.2% compared to 2007.
However, worldwide penetration of ESC technology in new cars will grow to 57% in 2012, up from 28% in 2006, says the firm.
“Shipments of ESC systems and associated MEMS will continue to rise, despite the current downturn, due to government mandates requiring stability control in the United States and later in Europe. This provides opportunities for at least six players new to the ESC market, either in development or sampling gyroscopes, and likewise four companies developing product for accelerometers. We expect the new offerings may begin in the truck market before attacking the large automotive OEMs,” said Richard Dixon, senior analyst, MEMS for iSuppli.
VTI Technologies was the leader in MEMS accelerometers in 2007 with a 53% share of industry revenue. VTI supplies all the MEMS accelerometers used by Continental Automotive Systems, the leading supplier of ESC systems.
Bosch is in second place, supplying accelerometers for its own systems and to Mobis. It held a 29% share of ESC accelerometer revenue last year, according to iSuppli.
Systron Donner was the gyroscope market leader with a 44% share of revenue in 2007. Bosch was second last year, with 30% of revenue as a result of sales of gyroscopes for its own ESC systems.
However, the company to watch in this segment is Panasonic, says iSuppli, which held the No. 4 rank for ESC gyroscope revenue last year. The firm managed to surpass Silicon Sensing Systems in unit shipments, giving it the No. 3 ranking based on volume.
“Panasonic is on the rise in the ESC gyroscope market with a robust and inexpensive new gyroscope, and could jump several more places in the next five years,” Dixon said.
In 2007, Bosch led the pressure sensor market with 54% share of revenue. Sensata, a 2006 spin-off from Texas Instruments Inc., is the second major player with a 34% share of revenue, with Denso a distant third place, says the research firm.
SCOTTSDALE, AZ – With economic conditions remaining shaky through most of 2009, personal computer sales are forecast to suffer a rare-but-modest decline next year, and PC unit growth is expected to slow down to about half the rate seen in 2008, according to IC Insights.
In 2009, however, shipments of portable notebook computers are expected to exceed desktop PCs for the first time ever. Notebook PC shipments are projected to rise 13% to 156 million systems in 2009, versus a 3% decline for desktop systems to 143 million, says the research firm. Worldwide shipments of notebook computers are expected to reach 264 million in 2012 compared to 178 million desktop PCs.
Overall PC dollar volumes are forecast to decline 3% next year to $240 billion. While market conditions will remain weak through much of 2009, IC Insights does not believe the PC segment will suffer a protracted downturn, as was the case in the 2001-2002 recession. Supply-chain inventories did not grow out of control in 2008, and PCs are more pervasive than they were at the start of this decade. Growing demand for low-cost systems in developing regions is also helping offset some weakness in the U.S., European, and Japanese markets. PC revenues are now forecast to rebound by more than 9% in 2010 to about $263 million. PC unit growth is also expected to surge back in 2010 with shipments rising 15% to 350 million systems worldwide compared to a projected 5% increase in 2009.
During the 2009 slowdown year, PC integrated circuit sales will fall 6% to $66.4 billion, the firm says. IC sales for PCs dropped 3% in 2008 to an estimated $70.4 billion after slipping 4% in 2007 to $72.3 billion, mainly as a result of price erosion in DRAMs and x86 central microprocessors sold by Intel and rival Advanced Micro Devices. IC sales are expected to rebound in 2010, reaching an annual record high of $83 billion in 2011.
