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TAIPEI -- OEM/ODM Micro-Star International will refocus its notebook computer line on the hot netbook market and may spin off its Wind brand of low-cost "nettop" PCs.
NANTOU, TAIWAN – Universal Scientific Industrial Co. reported consolidated net EMS revenues of $21.8 million for the month ended Dec. 31, down 18% sequentially and 55% from the same period last year.
The company, a top 25 global EMS company, reported total sales of $490.4 million for its EMS segment in 2008. EMS makes up 18% of its total sales in Taiwanese dollars.
YAVNE, ISRAEL – Valor Computerized Systems has acquired the assets of PCB Matrix Corp., a provider of EDA library generation tools for both land pattern and schematic symbols. No financial terms were disclosed.
PCB Matrix's software automates custom schematic symbol generation, and adds land pattern generation to Valor’s portfolio.
In a press release, Valor vice president of Design Market Patrick McGoff said, “Extending the value of the ISO-certified content upstream into the design arena is a logical progression for us. We believe the industry will benefit from a streamlined library creation process that has the potential to incorporate manufacturing knowledge into the EDA libraries. This will ultimately lead to more manufacturable designs the first time through.”
EL SEGUNDO, CA – Following a 3% sequential decline in the third quarter, global unit shipments of large-sized LCD panels decreased another 5% in the fourth quarter of 2008, according to iSuppli Corp.
“Television, monitor and notebook PC makers are slashing orders for large-sized LCD panels due to weak holiday season sales, reflecting the global downturn in consumer and corporate demand,” said Sweta Dash, senior director of LCD research at iSuppli. “The recession in the global economy has impacted all areas of the electronics value chain, including large-sized LCDs, an area that will continue to struggle into the first quarter of 2009.”
iSuppli defines large-sized LCD panels as those having a diagonal dimension of 10" or more.
The large-sized LCD panel market has been struggling through severe oversupply conditions since the beginning of June, as a result of lower-than-expected panel demand and high levels of inventories building up throughout the LCD supply chain. To make matters worse, the market was pushed back into a state of further oversupply, rather than recovering at the end of September because of the financial crisis that impacted US and global demand in the second half of September, says iSuppli.
“Panel prices are continuing to fall, even though some prices are already at or even less than the cash cost level,” Dash said. “Monitor panel prices have declined 40% to 45% since June. Notebook prices also have decreased 35% to 40% during the same period. Meanwhile, television panel prices have dropped 25% to 30%.”
Some television panel prices have been declining since the first quarter of 2008, while monitor panel prices have been dropping since the end of the second quarter. The average 32" television panel price declined from $335 in January 2008 to the $200 to $210 range by November.
Faced with severe cuts in panel profitability in the third quarter and continued price reductions, LCD suppliers have cut their utilization rates in the fourth quarter. Some suppliers already are reducing utilization rates 40%, and are running their fabs at 60% capacity. Some fabs are even running below the 50% level, according to the research firm. Most panel suppliers are planning to maintain this level of utilization in the first quarter of 2009.
Despite the drop in utilization rates in the fourth quarter, the panel market is still suffering from oversupply. Most brand manufacturers and retailers are reporting slow holiday and corporate sales in the fourth quarter. They are reducing target inventory levels drastically and canceling orders. This has caused inventories to swell throughout the supply chain, says iSuppli.
iSuppli has reduced its large-sized LCD forecast for 2008 and 2009 as a result of the recent financial crisis and the recession in the US and worldwide. Although the change in the unit shipment forecast is still less than 5% for 2008, the revenue forecast for the year is reduced 8%. However, the revenue impact may be even greater in 2009, unless the market can stabilize by the third quarter.
“Oversupply and drastic price reductions are nothing new to the large-sized LCD panel market, as the industry generally uses the strategy of capacity expansion, price reduction and demand creation to boost sales and increase the LCD's dominance in the display market,” Dash observed. “However, this time the industry ended up being in double trouble, when panel suppliers faced the worldwide economic and financial crisis right after confronting their own industry oversupply issues in the third quarter of 2008.
“There has been some concern about cash issues among suppliers, especially smaller component makers, which may significantly disrupt the LCD supply chain. It may take the LCD industry a long time to recover, even when market demand returns.
“Television, monitor and notebook PC makers are slashing orders for large-sized LCD panels due to weak holiday season sales, reflecting the global downturn in consumer and corporate demand,” said Sweta Dash, senior director of LCD research at iSuppli. “The recession in the global economy has impacted all areas of the electronics value chain, including large-sized LCDs, an area that will continue to struggle into the first quarter of 2009.”
iSuppli defines large-sized LCD panels as those having a diagonal dimension of 10" or more.
The large-sized LCD panel market has been struggling through severe oversupply conditions since the beginning of June, as a result of lower-than-expected panel demand and high levels of inventories building up throughout the LCD supply chain. To make matters worse, the market was pushed back into a state of further oversupply, rather than recovering at the end of September because of the financial crisis that impacted US and global demand in the second half of September, says iSuppli.
“Panel prices are continuing to fall, even though some prices are already at or even less than the cash cost level,” Dash said. “Monitor panel prices have declined 40% to 45% since June. Notebook prices also have decreased 35% to 40% during the same period. Meanwhile, television panel prices have dropped 25% to 30%.”
Some television panel prices have been declining since the first quarter of 2008, while monitor panel prices have been dropping since the end of the second quarter. The average 32" television panel price declined from $335 in January 2008 to the $200 to $210 range by November.
Faced with severe cuts in panel profitability in the third quarter and continued price reductions, LCD suppliers have cut their utilization rates in the fourth quarter. Some suppliers already are reducing utilization rates 40%, and are running their fabs at 60% capacity. Some fabs are even running below the 50% level, according to the research firm. Most panel suppliers are planning to maintain this level of utilization in the first quarter of 2009.
Despite the drop in utilization rates in the fourth quarter, the panel market is still suffering from oversupply. Most brand manufacturers and retailers are reporting slow holiday and corporate sales in the fourth quarter. They are reducing target inventory levels drastically and canceling orders. This has caused inventories to swell throughout the supply chain, says iSuppli.
iSuppli has reduced its large-sized LCD forecast for 2008 and 2009 as a result of the recent financial crisis and the recession in the US and worldwide. Although the change in the unit shipment forecast is still less than 5% for 2008, the revenue forecast for the year is reduced 8%. However, the revenue impact may be even greater in 2009, unless the market can stabilize by the third quarter.
“Oversupply and drastic price reductions are nothing new to the large-sized LCD panel market, as the industry generally uses the strategy of capacity expansion, price reduction and demand creation to boost sales and increase the LCD's dominance in the display market,” Dash observed. “However, this time the industry ended up being in double trouble, when panel suppliers faced the worldwide economic and financial crisis right after confronting their own industry oversupply issues in the third quarter of 2008.
“There has been some concern about cash issues among suppliers, especially smaller component makers, which may significantly disrupt the LCD supply chain. It may take the LCD industry a long time to recover, even when market demand returns.
“Since a strong demand recovery is difficult to mount in the current economic environment, adjustments must come from the supply side in order to bring the industry back to stabilization. Panel suppliers must cut production and reduce their expansion plans now more than ever to achieve a market recovery.”
BANNOCKBURN, IL – IPC is seeking nominations to recognize volunteers who contribute to IPC standards development and other association activities. Nominees are sought for contributions ranging from one-time activities to career-long service and accomplishments.
The IPC Peter Sarmanian Corporate Recognition Award recognizes a corporation (or division) in the PCB industry (supplier, board manufacturer or OEM) that has taken a leadership role and made contributions to the industry, while demonstrating support of IPC through participation in technical and/or management programs.
The IPC Stan Plzak Corporate Recognition Award recognizes a corporation (or division) in the electronics assembly industry (supplier, EMS company or OEM) that has actively contributed to enhancing the industry, while demonstrating support of IPC through participation in technical and/or management programs.
The IPC Raymond E. Pritchard Hall of Fame Award honors an individual for contributions with broad significance to the electronic interconnection industry and distinguished service to IPC. The nominee must support the advancement of the industry.
The Presidents Award honors individuals from IPC member companies who have demonstrated ongoing leadership in IPC and have made contributions to the association and the electronic interconnection industry.
Committee Leadership Awards are given to committee chairs upon completion of a standard or specific program. Individuals may receive this award more than once. This award can also be presented to an outgoing chairman who has made contributions over a period of time.
Distinguished Committee Service (DCS) Awards are presented to committee members who have contributed to a specific standard or other IPC program through consistent participation or regular contributions, ballot submission, and significant impact on a document or project.
Individuals or companies that have given exceptional service to an IPC program or the industry are honored with the Special Recognition Award. The activity can be short-term or a one-time event.
Nominations must include the candidate’s name, contact information and a statement describing the contribution(s), how the nominee meets the criteria and why they deserve recognition. Self-nominations are accepted.
Awards will be presented at Apex the week of March 30 in Las Vegas. For more information, visit www.ipc.org/awards.
Send nominations to Awards@ipc.org by Feb. 4.
The IPC Peter Sarmanian Corporate Recognition Award recognizes a corporation (or division) in the PCB industry (supplier, board manufacturer or OEM) that has taken a leadership role and made contributions to the industry, while demonstrating support of IPC through participation in technical and/or management programs.
The IPC Stan Plzak Corporate Recognition Award recognizes a corporation (or division) in the electronics assembly industry (supplier, EMS company or OEM) that has actively contributed to enhancing the industry, while demonstrating support of IPC through participation in technical and/or management programs.
The IPC Raymond E. Pritchard Hall of Fame Award honors an individual for contributions with broad significance to the electronic interconnection industry and distinguished service to IPC. The nominee must support the advancement of the industry.
The Presidents Award honors individuals from IPC member companies who have demonstrated ongoing leadership in IPC and have made contributions to the association and the electronic interconnection industry.
Committee Leadership Awards are given to committee chairs upon completion of a standard or specific program. Individuals may receive this award more than once. This award can also be presented to an outgoing chairman who has made contributions over a period of time.
Distinguished Committee Service (DCS) Awards are presented to committee members who have contributed to a specific standard or other IPC program through consistent participation or regular contributions, ballot submission, and significant impact on a document or project.
Individuals or companies that have given exceptional service to an IPC program or the industry are honored with the Special Recognition Award. The activity can be short-term or a one-time event.
Nominations must include the candidate’s name, contact information and a statement describing the contribution(s), how the nominee meets the criteria and why they deserve recognition. Self-nominations are accepted.
Awards will be presented at Apex the week of March 30 in Las Vegas. For more information, visit www.ipc.org/awards.
Send nominations to Awards@ipc.org by Feb. 4.
MANASSAS, VA – Zestron this year will introduce several first-of-its-kind product technologies and will expand its engineering teams in each of its three facilities worldwide, the company said today.
“Zestron will pursue its investment in personnel and its organization in 2009 to be well situated when the global economy recovers,” said Dr. Harald Wack, vice president and CEO of Zestron America.
In its most recent move, Zestron Europe in December moved into a 36,000 sq. ft. facility in Ingolstadt, Germany, said to house Europe’s largest technical and analytical center, at more than 10,000 sq. ft.
“Zestron will pursue its investment in personnel and its organization in 2009 to be well situated when the global economy recovers,” said Dr. Harald Wack, vice president and CEO of Zestron America.
In its most recent move, Zestron Europe in December moved into a 36,000 sq. ft. facility in Ingolstadt, Germany, said to house Europe’s largest technical and analytical center, at more than 10,000 sq. ft.
SAN JOSE – Massive government spending will drive significant growth in China’s semiconductor industry to 2020, according to a just released report.
China’s central and local governments have announced investments totaling up to $50 billion toward semiconductor-related projects, says SEMI.
China is the world’s leading market for IC consumption, accounting for approximately 28%. Increasingly, this demand will be met with China-produced chips, including leading-edge ICs produced in 300-mm fabs, says SEMI.
Meanwhile, equipment and materials suppliers that can leverage current China industry relationships and expand contacts to the next-generation buyers will prosper, the trade group says.
In the past five years, China’s government influenced the investment of about $7 billion in new fabs. That figure could triple, as another $20 billion to $25 billion will be invested by local governments throughout the country. Going forward, the central government will invest up to $30 billion in the industry by 2020, according to SEMI.
The switch in investment strategy marks a new phase of industry development in China. Up until 2005, China’s focus was foundries, with fabs from SMIC, Grace, Huanhong, TSMC and Hejian driven by private sector investments and supported by government tax incentives. In 2005 to 2006, the government used incentives to aid international integrated device makers such as Intel and Hynix.
The current phase business model is government-owned “virtual” IDMs. Many of these projects are based on three pillars: investment from government or state-owned entities, fab operation expertise from established companies such as SMIC or other experienced team, and a marketing/product partner such as Elpida. This business model underscores the growing role of China-based investment and the continued importance of China as a global center of semiconductor manufacturing, according to SEMI.
Unlike recent years, China fab equipment and materials purchasing decisions are more often made at the local level and not through corporate contracts originating from Japan, Taiwan or the US. With local, regional and national government funding involved in the building and equipping of new fabs, the purchasing process in China has taken a unique Chinese character. In addition to technical evaluations, request for proposals and request for quotes, multi-discipline delegations and committees are formed that include local government officials and universities. Government plays a critical role in the decision-making process.
As the China semiconductor industry grows with the infusion of government, international IDM and foundry, and China-investor investments, the market is also diversifying with increasing 300-mm equipment, a massive assembly and test infrastructure, and rapidly expanding related industries in flat panel displays and solar. Increasingly, these industries are becoming interrelated where university, government, investor and supplier relationships extend across multiple supply chains.
Not only has China become the world’s IC consumer, fab materials spending in China will reach $1.5 billion by 2010, with the highest growth rate among all the key microelectronic markets in the world. In addition, with recent 300-mm fab announcements by SMIC, Hynix, Promos and others, and recent changes in the Taiwan government, greater technology spending is anticipated.
Along with wafer processing, China’s test and assembly market, including internal IDM assembly and test operations, continues to be world’s fastest growing. More than 45 assembly and test plants are currently operating in China, most centered in Suzhou, Wuxi and Shanghai. Further expansion of the Chinese assembly and test industry is occurring in western China with new plants opening in Xi’an and Chengdu. iSuppli found there are more than 550 fabless semiconductor companies in China that help drive capacity in these plants.
China is also experiencing rapid expansion of the display and solar industries. LCD TV sales in China have grown from 3.9 million units in 2006 to an estimated 12.6 million units this year. By 2012, LCD TV sales are forecasted to grow to more than 33 million units. To meet this demand and export market, Generation 6 plants have been announced by BOE-Hiefei, Irico and SVA. A Gen 7.45 plant has also been announced by InfoVision Optronics (Kunshan) Co. Ltd. (IVO). IVO has also announced an expanded cooperation agreement with AUO of Taiwan. Most recently, BOE-Beijing has announced a preliminary plan for a Generation 8 plant.
Since 2004, China has been moving toward a huge solar production ramp on all fronts of the domestic supply chain: polysilicon feedstock, wafers, cells and modules. China’s solar cell production and capacity have reached growth rates from 100% to 400%. In the last two years, China’s 10 IPOs have raised nearly $2 billion to meet the world’s growing demand for PV-related products and services. With these highly prominent initial public offerings, China’s solar energy industry is poised to make a major impact on worldwide polysilicon capacity and solar cell production, says SEMI.
In 2008, China has become the No. 1 PV producer in the world. However, China’s domestic market for PV installation is quite small. About 98% of its production is shipped overseas. By the end of 2007, China’s accumulative installation was only 100MW, less than 1% of the worldwide installation.
Even though China’s government has enacted a number of national renewable energy policies, less emphasis has been put on solar energy. SEMI has joined forces with China’s leading PV companies and formed the SEMI China PV Committee. The committee has recently initiated a PV industry advocacy program to collectively address issues facing China’s PV industry and to petition for more government support in the areas of legislation, policy and financial support, with the aim of stimulating domestic demand while overseas market weakens.
In addition to polysilicon, solar grade wafers and solar cells and modules, China will also benefit from an emerging domestic equipment industry representing the entire production process, including thermal process, plasma etch, wet bench, PECVD and semi-automated screen printing.
Supporting equipment and component vendors are also expected to emerge in China. The business model for many of these new solar energy firms, such as Suntech, Yingli and Jing’ao, follow a vertically integrated path. Some companies, such as LDK or CSUN, however, specialize in a limited number of steps in the supply chain.
Recently, Chinese PV product manufacturers have increased their focus on thin-film silicon PV modules, a sub-area attracting significant interest.
The global PV industry is certain to grow during the next several years. Regardless of the ultimate scope and nature of the future industry, China’s role in the global industry will certainly grow, and like most industrial segments in China, achieve global impact, according to SEMI.
China’s central and local governments have announced investments totaling up to $50 billion toward semiconductor-related projects, says SEMI.
China is the world’s leading market for IC consumption, accounting for approximately 28%. Increasingly, this demand will be met with China-produced chips, including leading-edge ICs produced in 300-mm fabs, says SEMI.
Meanwhile, equipment and materials suppliers that can leverage current China industry relationships and expand contacts to the next-generation buyers will prosper, the trade group says.
In the past five years, China’s government influenced the investment of about $7 billion in new fabs. That figure could triple, as another $20 billion to $25 billion will be invested by local governments throughout the country. Going forward, the central government will invest up to $30 billion in the industry by 2020, according to SEMI.
The switch in investment strategy marks a new phase of industry development in China. Up until 2005, China’s focus was foundries, with fabs from SMIC, Grace, Huanhong, TSMC and Hejian driven by private sector investments and supported by government tax incentives. In 2005 to 2006, the government used incentives to aid international integrated device makers such as Intel and Hynix.
The current phase business model is government-owned “virtual” IDMs. Many of these projects are based on three pillars: investment from government or state-owned entities, fab operation expertise from established companies such as SMIC or other experienced team, and a marketing/product partner such as Elpida. This business model underscores the growing role of China-based investment and the continued importance of China as a global center of semiconductor manufacturing, according to SEMI.
Unlike recent years, China fab equipment and materials purchasing decisions are more often made at the local level and not through corporate contracts originating from Japan, Taiwan or the US. With local, regional and national government funding involved in the building and equipping of new fabs, the purchasing process in China has taken a unique Chinese character. In addition to technical evaluations, request for proposals and request for quotes, multi-discipline delegations and committees are formed that include local government officials and universities. Government plays a critical role in the decision-making process.
As the China semiconductor industry grows with the infusion of government, international IDM and foundry, and China-investor investments, the market is also diversifying with increasing 300-mm equipment, a massive assembly and test infrastructure, and rapidly expanding related industries in flat panel displays and solar. Increasingly, these industries are becoming interrelated where university, government, investor and supplier relationships extend across multiple supply chains.
Not only has China become the world’s IC consumer, fab materials spending in China will reach $1.5 billion by 2010, with the highest growth rate among all the key microelectronic markets in the world. In addition, with recent 300-mm fab announcements by SMIC, Hynix, Promos and others, and recent changes in the Taiwan government, greater technology spending is anticipated.
Along with wafer processing, China’s test and assembly market, including internal IDM assembly and test operations, continues to be world’s fastest growing. More than 45 assembly and test plants are currently operating in China, most centered in Suzhou, Wuxi and Shanghai. Further expansion of the Chinese assembly and test industry is occurring in western China with new plants opening in Xi’an and Chengdu. iSuppli found there are more than 550 fabless semiconductor companies in China that help drive capacity in these plants.
China is also experiencing rapid expansion of the display and solar industries. LCD TV sales in China have grown from 3.9 million units in 2006 to an estimated 12.6 million units this year. By 2012, LCD TV sales are forecasted to grow to more than 33 million units. To meet this demand and export market, Generation 6 plants have been announced by BOE-Hiefei, Irico and SVA. A Gen 7.45 plant has also been announced by InfoVision Optronics (Kunshan) Co. Ltd. (IVO). IVO has also announced an expanded cooperation agreement with AUO of Taiwan. Most recently, BOE-Beijing has announced a preliminary plan for a Generation 8 plant.
Since 2004, China has been moving toward a huge solar production ramp on all fronts of the domestic supply chain: polysilicon feedstock, wafers, cells and modules. China’s solar cell production and capacity have reached growth rates from 100% to 400%. In the last two years, China’s 10 IPOs have raised nearly $2 billion to meet the world’s growing demand for PV-related products and services. With these highly prominent initial public offerings, China’s solar energy industry is poised to make a major impact on worldwide polysilicon capacity and solar cell production, says SEMI.
In 2008, China has become the No. 1 PV producer in the world. However, China’s domestic market for PV installation is quite small. About 98% of its production is shipped overseas. By the end of 2007, China’s accumulative installation was only 100MW, less than 1% of the worldwide installation.
Even though China’s government has enacted a number of national renewable energy policies, less emphasis has been put on solar energy. SEMI has joined forces with China’s leading PV companies and formed the SEMI China PV Committee. The committee has recently initiated a PV industry advocacy program to collectively address issues facing China’s PV industry and to petition for more government support in the areas of legislation, policy and financial support, with the aim of stimulating domestic demand while overseas market weakens.
In addition to polysilicon, solar grade wafers and solar cells and modules, China will also benefit from an emerging domestic equipment industry representing the entire production process, including thermal process, plasma etch, wet bench, PECVD and semi-automated screen printing.
Supporting equipment and component vendors are also expected to emerge in China. The business model for many of these new solar energy firms, such as Suntech, Yingli and Jing’ao, follow a vertically integrated path. Some companies, such as LDK or CSUN, however, specialize in a limited number of steps in the supply chain.
Recently, Chinese PV product manufacturers have increased their focus on thin-film silicon PV modules, a sub-area attracting significant interest.
The global PV industry is certain to grow during the next several years. Regardless of the ultimate scope and nature of the future industry, China’s role in the global industry will certainly grow, and like most industrial segments in China, achieve global impact, according to SEMI.
NEW YORK -- Is the semiconductor industry about to turn up? One Wall Street analyst thinks so.
Wachovia analyst David Wong has upgraded the semiconductor sector to overweight from market weight, saying a recovery could come in the next quarter.
Wachovia analyst David Wong has upgraded the semiconductor sector to overweight from market weight, saying a recovery could come in the next quarter.
TOKYO -- The restructuring is over for Sony's electronics group, the company confirmed today, in response to rumors of further cuts.
The electronics OEM in December announced coming layoffs of 8,000 full-time jobs and 8,000 seasonal and part-time workers.
The electronics OEM in December announced coming layoffs of 8,000 full-time jobs and 8,000 seasonal and part-time workers.
CONCORD, NH -- A state committee will soon contemplate a bill banning the disposal of electronics waste into landfills.
The proposed bill is expected to be introduced this month by Rep. Tara Sad, chairman of the Environment and Agriculture Committee, and would be sent to either to the House Environment and Agricultural Committee or the Science and Technology Committee, the local Union Leader newspaper reported.
Sad cited landfill capacity, the rise of corporate takeback programs and "e-waste" recycling firms, and moral obligations that would keep the US from shipping waste to third-world nations.
The proposed bill is expected to be introduced this month by Rep. Tara Sad, chairman of the Environment and Agriculture Committee, and would be sent to either to the House Environment and Agricultural Committee or the Science and Technology Committee, the local Union Leader newspaper reported.
Sad cited landfill capacity, the rise of corporate takeback programs and "e-waste" recycling firms, and moral obligations that would keep the US from shipping waste to third-world nations.
TAIPEI -- Hon Hai Precision today disputed reports the company will distribute Apple's iPhone in China.
Hon Hai, the official name of Foxconn, dismissed the reports as media rumor, saying big announcements would come from the company.
Hon Hai, the official name of Foxconn, dismissed the reports as media rumor, saying big announcements would come from the company.
NEENAH, WI -- Plexus Corp. this month will start construction on its new headquarters here, and will also begin moving into a recently acquired building in nearby Greenville.
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