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CHELMSFORD, ENGLAND – A 10-page photographic reference guide on counterfeit components is available from Bob Willis.
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SANTA CLARA, CAIntel chairman Craig Barrett will retire from active management in May at the company’s annual stockholders' meeting, the company said today.

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HAVERHILL, MA – Engineering firm DKN Research and NY Industries, a circuit board manufacturer, launched a prototype and engineering service for printable electronics.

The firms established a prototype service for trials with new printable electronics products, using printing equipment and other circuit manufacturing facilities, including roll-to-roll systems with broad ranges of thick-film circuit technologies.

Ohtsu, Japan-based NY Industries is currently capable with a thick-film printing process for broad ranges of substrate materials for both rigid and flexible circuits; fine line traces down to 30 µm line and space; high conductivity thin thick-film traces down to 3 µm; single-side circuits, double-side circuits and multilayer up to eight layers; printed via holes with mechanically drilled holes and printed holes; solderable thick-film circuits; embedded resistors from 100 ohms to 10 megaohms; embedded capacitances up to 10,000 picofarads; embedded inductances with various constructions, and embedded EL devices with inorganic materials.

NEW YORK – IBM’s cautious outlook for server and storage hardware suggests lower revenue for its EMS suppliers, including Celestica, Sanmina, Flextronics, Jabil and Benchmark, Deutsche Bank said.

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EL SEGUNDO, CA – China’s semiconductor industry is expected to contract in 2009, the first time a significant decline has occurred since iSuppli Corp. began gathering statistics on the market – and perhaps for the first time in the history of the nation’s chip business, the firm says.

China’s semiconductor market is expected to decline 5.8% year-over-year to $72 billion in 2009, says iSuppli. The only previous decline iSuppli recorded was in 2008, when revenue decreased a scant 0.1%, essentially a flat year.

“Such a downturn is remarkable for a region long regarded as a vigorous and reliable growth driver for the global semiconductor market,” said Kevin Wang, senior manager of China research at iSuppli. “Even during the disastrous 2001, when global semiconductor revenue plunged by 28.6%, China’s industry managed to surge by 24.4%. With global semiconductor revenue expected to decline by 9.4% in 2009, and with consumer confidence at risk of falling further, China’s semiconductor outlook could dim even more than iSuppli presently forecasts.”

Despite this, iSuppli predicts growth will rebound 9% in 2010, followed by an 11% increase in 2011.

“China’s economy has been increasingly affected by the financial crisis in developed countries since the third quarter of 2008,” Wang said. “Many small consumer electronics factories in Guangdong province closed because of lower sales orders and cash flow problems. Market conditions became even more negative in the fourth quarter of 2008. Most small firms saw their business decline by more than 40%, especially at low-tech, labor-intensive and export-oriented companies.”

To stimulate the economy, the Chinese government cut interest rates four times within two months, beginning in October. Moreover, a stimulus package estimated at around $570 billion will be implemented during the next two years. The government’s Home Appliances for Rural Areas project is an example of just one measure intended to stimulate domestic demand.

Meanwhile, the central government is in the process of making major structural changes in its industrial and commercial sectors through new corporate income tax and labor laws, plus the updated No. 18 Document of the State Council. The No. 18 Document has focused on building China’s high-tech electronics industries since 2000, especially semiconductors and IT. The government plans to further expand support for domestic high-tech and high value-added industries. These new policies will greatly affect future foreign direct investment in China, says iSuppli.

Moreover, the Chinese government will continue implementing an increasing number of national technical standards. In doing so, the central authorities hope to protect the country’s economic stability and national security. Domestic standards also are intended to help shield Chinese companies from their more established international competitors.

SAN JOSE -- Sanmina-SCI reported a fiscal first-quarter net loss of net loss of $768,000, on revenue of $1.42 billion. The company said it reduced headcount by 10% and cut salaries during the quarter.

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SMYRNA, GA -- UP Media Group today announced a series of chats led by several well-known industry experts has been added to the technical conference program of its Virtual PCB Web-based trade show, the industry's only virtual trade show and conference for the PCB design, fabrication and assembly markets.

Virtual PCB is a fully interactive, Web-based event that incorporates all the critical features of a live event: customized exhibit booths, chats, lounge areas, technical presentations, online learning and more. Now in its second year, the 2009 event will be held live Feb. 24-25, and will be available on-demand for two months following the live event.

New this year will be group chats on technical topics of high interest. The topics range from HDI design and processing, laminates and surface mount processing to test and inspection and defect prevention. Special chats on such highly charged topics as head-in-pillow and signal integrity are also planned.

A number of respected industry experts will be on hand as panelists, including Happy Holden and Charles Pfeil of Mentor Graphics; Dr. Mike Bixenman of Kyzen; Ken Parker of Agilent Technologies; Chrys Shea of Shea Engineering; Phil Zarrow of ITM Consulting; Dr. David Bernard of Dage and Dr. Jane Feng of Flextronics.

The chats are scheduled for 45 minutes each, allowing ample time for discussion between the panelists and attendees.

There is no cost to attend Virtual PCB or the group chats.

For more information on the chats, visit virtual-pcb.com/attendees/#chats. For more information on attending or exhibiting at Virtual PCB, visit www.virtual-pcb.com or contact Alyson Skarbek, show manager, at 678-589-8865 or askarbek@upmediagroup.com.
EL SEGUNDO, CA – Defying an expected 10.7% decline in global mobile handset shipments, China’s domestic wireless phone market is set to maintain its growth in 2009, according to iSuppli Corp.
 
iSuppli forecasts the domestic handset market will reach 239.1 million units in 2009, up 7.7% year-over-year.
 
“China’s three wireless operators are attracting new subscribers by reducing service fees. This will greatly contribute to demand from first-time buyers,” said Kevin Wang, senior manager of China research at iSuppli. “New subscribers are expected to exceed 90 million in 2009. Furthermore, more existing mobile users will be subscribing to a second number. Beyond that, the government’s broadened subsidy policy for consumer electronics purchases will stimulate demand in rural areas.”
 
Domestic authorized handset market shipments surpassed 180 million units in 2008. Meanwhile, the domestic gray market decreased to about 40 million units in 2008, down from more than 50 million units in 2007. A number of gray market suppliers became authorized brand-name companies. Their business grew dramatically in tier-three and tier-four urban and rural markets, says the firm.
 
Foreign handset OEMs occupied 56% of China’s handset market for 2008. Nokia was the largest handset supplier in China last year with a 37% market share. At the same time, Samsung expanded its share of handset shipments.
 
Tianyu will continue to be the leading Chinese brand in terms of domestic shipments.
 
There is no doubt the Chinese government finally will issue 3G licenses in 2009, says iSuppli. However, domestic 3G handset shipments will not increase dramatically during the year.
 
The total domestic 3G handset market is expected to reach 8 million units in 2009. Low-cost multimedia GSM and ultra-low-cost CDMA handsets should be among the best-selling products of 2009. However, smart phones and handsets supporting 3G, and the China Mobile Multimedia Broadcasting standard also will represent high-growth segments.
 
In term of total unit shipments, Huawei and ZTE are likely to be the leaders in China’s 3G handset market, according to the research firm.
 
Both were anticipated to ship more than 30 million units in 2008. Moreover, Huawei is now the largest 3G data card supplier in the world. Chinese handset manufacturers collectively were projected to ship more than 300 million handsets by the end of 2008. iSuppli forecasts Chinese handset manufacturers will ship more than 360 million units in 2009, driven by both domestic and export markets.

SURREY, ENGLAND – TT Electronics, the parent company of TT EMS, will lay off 700 workers this year, the company said today.

The cuts would make up about 10% of the firm's global staff and are in addition to headcount reductions of 595 positions in 2008.

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SAN JOSE -- Flextronics is terminating "certain arrangements" with Nortel Networks to reduce its exposure to the Canadian telecom company as it winds its way through bankruptcy.

The programs would come to an end by July, Nortel said, without disclosing the products or services or their values. Nor did the OEM indicate whether any of the programs or services designated for termination were near the end of their contract life.

Flextronics is said to provide 75% of Nortel's finished product worldwide. For its part, Nortel was recently among Flextronics' largest five customers, but the EMS firm has been working over the past several months to reduce its financial ties.

In an announcement, Nortel said it would purchase $120 million of existing inventory from Flextronics by July, in addition to other quarterly purchases.


CHICAGO – Merger and acquisition activity in the EMS sector slowed slightly in 2008, with a total of 48 EMS companies changing hands in 2008, down three from 2007.

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NEW YORK -- IEC Electronics reported December quarter revenue of $15.8 million, up 41% over a year ago.

Operating income was up 141% to $946,000 and net income rose 27% to $532,000 for the company's first fiscal quarter.

Gross margin improved to 14.1%, up 3.8 points from a year ago. Operating income was 6% of sales versus 3.6% for the same period last year. The company pointed to improved product mix, manufacturing efficiency, and a larger customer base, including a new aerospace customer.

In a statement, chairman and CEO Barry Gilbert, said, “We expect continued revenue growth during the balance of the year, and expect to further intensify our market focus in the medical technology sector in the coming quarters. As we all know, the economy is in a deep recession. While some of our customers are indeed experiencing significant difficulties we have others that continue to expand their commercial activity with us."

The company may apply to re-list its common stock on the Nasdaq Capital Market, he said, which could involve a reverse split of the company's common stock.


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