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EL SEGUNDO, CA – iSuppli Corp. has trimmed its global LCD-TV shipment forecast to 93.4 million units in 2008, down nearly 6% from its previous prediction of 99 million.

iSuppli also reduced its previous forecast of 124 million units for 2009 to 112.6 million units for the year.

Despite this more subdued outlook, worldwide LCD-TV shipments still will rise 18.9% in 2008 and 20.5% in 2009.

“The economic downturn in the United States and Europe has had a knock-on effect on global economies, spurring a slowdown in gross domestic product growth, an increase in inflation and a deceleration in consumer spending around the world,” said Riddhi Patel, principal analyst, television systems, for iSuppli.

“The current crisis is impacting spending in all markets, including LCD TVs. The continued impact of the recession and credit crunch in the United States and Europe, and rising inflation in many emerging markets, will slow down sales growth for LCD TVs in 2009 as well.”

However, this slowdown won’t be sufficient to cause an annual decrease in unit shipments in 2008 or 2009.

“LCD-TV shipments will continue to rise due to strong consumer interest and declining average selling prices for sets,” Patel noted. “Furthermore, iSuppli expects major brands' marketing and promotional efforts will fuel demand.”

iSuppli anticipates the fourth quarter of 2008 will be weak for LCD-TV sales compared to previous expectations.

While OEM shipments to the sales and distribution channels will continue to be robust, consumer purchases will be weak, the firm says. This implies that in early 2009 the channels will be holding more than nine weeks of inventory, a level that could vary by region. To clear out the existing inventories, the channels will be forced to reinstate aggressive prices normally seen only during the peak holiday season between Thanksgiving and Christmas, according to iSuppli.

The first half of 2009 is expected to bring a slowdown as well because most regions will continue to struggle because of the current financial environment. Conditions are expected to improve in the second half of 2009 because the mature regions will begin to show first signs of a recovery during the third quarter.

The recovery and low pricing for LCD TVs – such as $400 for a 32" set or $600 to $700 for a 40/42" LCD TV – will fuel consumer demand. By the third quarter of 2009, the availability of panels at aggressive prices, rock-bottom retail ASPs and the economic turnaround will combine to fuel a resurgence in demand for LCD TVs, says iSuppli.

“Before the recession hit, 2009 was expected to be a year when the TV market would grow substantially because of the large number of replacement purchases in the mature regions, as well as in economically emerging nations,” Patel said. “Moreover, the downturn had been expected to last only a few quarters, and was not believed to be as severe as it now appears.”

iSuppli's updated forecast for LCD-TV shipments in 2009 has been reduced by 10%, given the economic recovery will take longer than expected. Starting in 2010, the market will bounce back and the demand for LCD TVs will pick up.”

The factors leading to this rebound include continued declines in prices; new panel production capacity; brand and retailer commitments to sell more LCD TVs, and increased consumer demand.

BUCKS, UK – SMART Group has redesigned www.smartgroup.org to support engineers globally.

The site includes new features to assist in solving technical problems, design help, searching for suppliers or keeping up-to-date with industry trends.

The firm’s future events are included on the site, with reports on recent seminar and workshop presentations.

Newsletters are archived to January 2004, and visitors can participate and see results of SMART Group’s surveys.

Most frequently asked questions and responses from the smart-e-link forum are now available. Featured defects, technology downloads, a library of technical papers and assembly defect video clips are also on the site.

MARLOW, ENGLAND – Aegis Software, developer of manufacturing operations system software, has opened its new European headquarters near Marlow, England.

Aegis Europe occupies an entire building with facilities for customer support, training, a customer lounge, and sales and administrative offices. Training is available to educate customers on the firm’s MOS software.

The location has an expanded sales and support staff and technology conferences to update local customers on new product developments, and to provide first-hand feedback.

CHANDLER, AZ – Isola Group, maker of base materials for PCBs, has entered into a license agreement with Park Electrochemical Corp., granting Park the right to practice under two of Isola’s patents.

These patents are directed to laminates and PCBs that incorporate square weave fabric materials.

Financial terms of the agreement are confidential and will not be disclosed.

BALTIMORE, MD – View Systems Inc., homeland defense solutions provider, has agreed to merge with Wytan.

Wytan is a Golden, CO-based EMS firm specializing in surface mount, ball grid array, micro BGA, chip scale packages and flip chip.

Principals from both companies are discussing the merger process. No financial terms have been disclosed.

BANNOCKBURN, IL – North American PWB shipments in October dropped 4.8% year-over-year; orders decreased 14.6% compared to the same month in 2007, says IPC.

PENANG, MALAYSIA – Several companies are taking steps ranging from freezing hiring to shortening their working weeks in response to lower demand for electronics, local officials say.

Agilent Technologies and Jabil Circuit will close their factories in Bayan Lepas between Christmas and New Year, Federation of Malaysian Manufacturers northern branch chairman Datuk O.K. Lee said, according to published reports. Others are reducing their workweek from five days to four.

ST. PETERSBURG – Workforce reductions will hit Jabil Circuit’s headquarters next month as the Top Tier EMS firm will axe some 150 employees, or roughly 7.5% of the site’s staff, a local paper is reporting.

NEW YORK -- Alcatel-Lucent is pulling most of its production now outsourced to Celestica, Flextronics and Sanmina-SCI back in house, Credit Suisse analysts are reporting.

The move will take nearly $2 billion out of the hands of the major contract assemblers. Instead, production will take place at Alcatel Shanghai Bell.

JASPER, IN – The economic decline will shakeup the OEM programs sought by EMS companies, Kimball International's top executive said.

"The financial crisis and the economic slowdown will cause those companies larger than we are to push down and to try to serve our space. It will bring more margin pressure in our markets," Kimball president and chief executive Jim Thyen said on the company's quarterly conference call with analysts.

Isola and ITEQ Settle Patent DisputeCHANDLER, AZ -- Isola Group SARL, a top supplier of printed circuit board laminates, today announced a settlement in its patent dispute with Iteq Corp.

Under terms of the agreement, Iteq shall not make, use, sell, offer for sale, or distribute its product 200DK or any other products that fall within the scope of any claims of the R.O.C. invention patent Nos. 142122 and 123529 and US Patent Nos. 6,187,852, 6,322,885 and 6,509,414 anywhere in the world.

Iteq further admits the validity and enforceability of the patents at issue, Isola said.

Financial details of the agreement will not be disclosed, Isola said.

Isola is one of the world's three largest suppliers of laminates and other base materials.

VANCOUVER, BC – Northstar Electronics reported third-quarter revenues fell 1.2% to $676,149 versus last year. The net loss widened 638% to $332,604 on program certification startup costs.

Year-to-date revenues are up 26% to $1.7 million, although the net loss has widened 120% to $1 million.