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SCOTTSDALE, AZ – IC Insights Inc. has slashed its 2008 semiconductor revenue forecast by $6 billion, according to published reports.
The market research firm now expects the industry to grow 4% to $244.3 billion this year. In June, the firm predicted 2008 growth of 7% to $250.3 billion.
However, the firm said long-term trends would sustain pricing stability, resulting in a CAGR of 10.6% between 2007 and 2012.
This change is attributed to the inventory correction of the logic market and the pricing collapse of the NAND flash market.
Overall, IC unit growth is set to increase 8%, with average selling prices down 4% this year.
Long term, trends supporting reduced capital spending will help increase fab utilization rates, stabilizing chip ASPs, the firm says. Overall chip ASPs decreased 5% last year and 8% in 2006.
Overall, capital spending will decrease 18% this year as a result of leading chipmakers easing up on expansion, according to IC Insights.
Capital spending as a percentage of semiconductor sales will be roughly 17.5%, the lowest in five years. During the past four years, it has been between 20 to 22%, and historically has been 20 to 30% since 1995, says the firm.
For 2009, IC Insights expects semiconductor capital spending to be likely in the 8 to 10% range.
The revised forecast calls for the memory market to decrease 10% year-over-year, with the DRAM segment down 10%.
The firm now expects the logic market to increase 13% in 2008 after previously forecasting 16% growth.
SHENZHEN – The organizers of Nepcon/EMT
South China trade show reported a record 25,912 attendees for its 14th annual show held earlier this month.
The show “exceeded my expectation in terms of visitor numbers. Although the market is not so strong this summer, [it] still attracted so many visitors. This is very impressive,” said Erik van de Ven, senior director of business support and marketing for Asia Pacific at Assembléon, in a press release.
Next year’s
show takes place Aug. 31-Sept. 2 at the Shenzhen Convention and Exhibition
Centre. The show is sponsored by Reed Exhibitions.
MONTREAL -- Midland Baring Financial Group has acquired Level Vision Electronics in an all-stock transaction.
Level Vision is a consumer electronics manufacturer and distributor.
HELSINKI – Elcoteq's senior vice president of group operations and sourcing, Petteri Laaksomo, is leaving the company to become senior vice president, supply chain management at Ruukki.
He will also become a member of Ruukki's Extended Management Board.
The search for a replacement is ongoing.
Laaksomo, who was also a member of Elcoteq's Management Team, had held the position since January. He was previously vice president of global operations and quality at Elcoteq, and also held positions as director of supply chain management and sourcing for Elcoteq's CNE Division and general manager of Elcoteq Asia Ltd.
Ruukki supplies metal-based components, systems and integrated systems to the construction and mechanical engineering industries.
He will also become a member of Ruukki's Extended Management Board.
The search for a replacement is ongoing.
Laaksomo, who was also a member of Elcoteq's Management Team, had held the position since January. He was previously vice president of global operations and quality at Elcoteq, and also held positions as director of supply chain management and sourcing for Elcoteq's CNE Division and general manager of Elcoteq Asia Ltd.
Ruukki supplies metal-based components, systems and integrated systems to the construction and mechanical engineering industries.
SANTA ANA, CA – Jasbir Bath of Bath Technical Consultancy has been retained as a consulting engineer to advise and support Christopher Associates and its customers in the Americas.
Bath will primarily support Koki soldering material products in North America.
For the past 10 years, Bath was corporate lead engineer with Solectron Corp. and Flextronics International. Bath is also an iNEMI consultant, working on the Pb-free rework optimization project.
Christopher Associates supplies solder paste, test and inspection equipment, and other soldering materials and equipment for printed circuit fabrication and assembly.
Bath will primarily support Koki soldering material products in North America.
For the past 10 years, Bath was corporate lead engineer with Solectron Corp. and Flextronics International. Bath is also an iNEMI consultant, working on the Pb-free rework optimization project.
Christopher Associates supplies solder paste, test and inspection equipment, and other soldering materials and equipment for printed circuit fabrication and assembly.
BANNOCKBURN, IL – Calling certain proposed recommendations to the RoHS Directive “arbitrary and lack(ing) a sound scientific basis,” IPC today issued a point-by-point rebuttal to the German non-profit firm that devised them.
The trade group summarized its stance in a white paper, “The Electronic Interconnection Industry Supply Chain’s Response to the Öko-Institut Recommendations for Proposed Revisions to the RoHS Directive,” a culmination of industry concerns voiced during a June meeting in Brussels.
“The white paper has a long title for what is essentially a point-by-point summary of technical issues not considered by the Öko-Institut in their report,” explained Fern Abrams, IPC’s director of government relations and environmental policy. “It is important that the commissioners understand the Öko-Institut recommendations are arbitrary, lack a sound scientific basis and would have a significant negative impact on our members and the industry.”
Earlier this year, the Öko-Institut proposed to expand the RoHS substance restrictions.
The Öko-Institut (Institute for Applied Ecology) is a non-governmental, non-profit environmental research firm. Previously, the group recommended the restriction of Tetrabromobisphenol A (TBBPA), the flame retardant used to protect more than 80% of PCBs, despite that TBBPA was found to be safe by a comprehensive European Union risk assessment, IPC said. In addition, Hexabromocylcododecanes (HBCDDs), several phthalate plasticizers, and all organic compounds containing chlorine and bromine, are identified in a report as suggested bans.
IPC will share the white paper with EU commissioners and other key decision makers; it is available for free download at www.ipc.org/ehs.
The trade group summarized its stance in a white paper, “The Electronic Interconnection Industry Supply Chain’s Response to the Öko-Institut Recommendations for Proposed Revisions to the RoHS Directive,” a culmination of industry concerns voiced during a June meeting in Brussels.
“The white paper has a long title for what is essentially a point-by-point summary of technical issues not considered by the Öko-Institut in their report,” explained Fern Abrams, IPC’s director of government relations and environmental policy. “It is important that the commissioners understand the Öko-Institut recommendations are arbitrary, lack a sound scientific basis and would have a significant negative impact on our members and the industry.”
Earlier this year, the Öko-Institut proposed to expand the RoHS substance restrictions.
The Öko-Institut (Institute for Applied Ecology) is a non-governmental, non-profit environmental research firm. Previously, the group recommended the restriction of Tetrabromobisphenol A (TBBPA), the flame retardant used to protect more than 80% of PCBs, despite that TBBPA was found to be safe by a comprehensive European Union risk assessment, IPC said. In addition, Hexabromocylcododecanes (HBCDDs), several phthalate plasticizers, and all organic compounds containing chlorine and bromine, are identified in a report as suggested bans.
IPC will share the white paper with EU commissioners and other key decision makers; it is available for free download at www.ipc.org/ehs.
WOODRIDGE, IL – The Morey Corp. today announced a major expansion of manufacturing capacity at its headquarters, with groundbreaking this month and completion projected for next June. The expansion will nearly double the existing facility’s manufacturing space, which, coupled with planned factory automation upgrades, will improve capacity by an estimated 280%.
MORGAN HILL, CA – Flextronics has signed a lease on a 155,520 sq. ft. building in a local business park and will hire 400 workers to build solar panels.
Flextronics officials signed a seven-year sublease for the building. Plans call for workers to begin in 30 to 45 days, the park development director said.
The building is located in the Madrone Business Park.
Flextronics officials signed a seven-year sublease for the building. Plans call for workers to begin in 30 to 45 days, the park development director said.
The building is located in the Madrone Business Park.
SHENZHEN – Wong’s Kong King International reported first-half revenues of HK$2.3 billion ($295 million), up from HK$1.99 billion ($256 million) last year. The operating profit was HK$102 million, up from HK$96 million. The net profit rose to HK$66.7 million, up 20.7%.
SAN JOSE – North America-based manufacturers of semiconductor equipment posted $884 million in orders in August and a book-to-bill ratio of 0.83, says SEMI. It marks the lowest 90-day average order level since 2003.
PRAGUE – Labor rates and operating expenses are rising in the Czech Republic, leading electronics manufacturers to evaluate opportunities in other parts of Eastern Europe, Asia and Africa. This is a change from 2004 to 2007, when the electronics manufacturing industry grew by leaps and bounds. Meanwhile, the country may move to design and other services to make up for any manufacturing losses.
“Rising operating expenses in the Czech Republic have forced a number of electronics manufacturers to consider other possible alternative locations in Europe so that they still save on manufacturing costs without compromising on proximity to the market,” says Frost & Sullivan analyst Harish Natesan. “The Czech Republic is also expected to witness a marked growth in design services against manufacturing in the coming years as there is an increasing demand for localized design activities in the country.”
Frost will discuss the state of the Czech electronics manufacturing market in a free telephone and web briefing Sept. 24. To participate, email Joanna Lewandowska at joanna.lewandowska@frost.com with the following information: your full name, company name, title, telephone number, email address, city, state and country.
BRUSSELS – The EU environmental NGOs, via The International Chemical Secretariat today introduced a list of some 300 chemical substances considered of “very high concern” and suitable for disclosing, says Design Chain Associates.
