Circuits Assembly Online Magazine - News

News

EL SEGUNDO, CA – After years of double-digit annual growth, China's 2008 semiconductor sales are expected to rise only 6.7% year-over-year to reach $81.7 billion, iSuppli Corp. predicts.

China’s domestic market situation improved in 2008, despite regulatory restrictions and an incomplete supply chain, says the research firm. Popular applications supporting new domestic standards will appear in 2009 as their industrial ecosystems mature. Although there is substantial economic uncertainty, continued revenue growth is anticipated in 2009, according to iSuppli.

Moreover, venture capitalists generally lack interest in China's IC industry. A majority of semiconductor firms are short of capital and face cash flow problems.

“iSuppli expects more than 100 Chinese IC companies to disappear within the next two years,” warned Vincent Gu, China research analyst at iSuppli. “Many companies presently are seeking buyers, and a total of four companies already have been acquired by foreign semiconductor firms during the past 12 months.”

iSuppli predicts China's fabless IC industry will grow faster than the foundries, but notes it is fragmented, with about 50 successful companies and dozens more struggling to survive.” Most companies have announced layoffs, cut production lines or have shut down entirely,” Gu said.

MANASSAS, VA – Stoelting and Zestron America have completed material compatibility testing for cleaning equipment and products.

Testing was conducted with the CBW Series, Triton inline cleaning equipment, and standalone wash system and liquid lock technology.

Results confirmed compatibility between all wetted parts exposed directly to Vigon and Atron cleaning agents, say the firms.

YAVNE, ISRAEL – Orbotech reported a third-quarter net loss of $43.1 million on revenues of $94.8 million. It also announced plans to drop out of the PCB AOI equipment business and reduce its workforce by 15%.

RICHARDSON, TX – TXP Corp.’s third-quarter revenues rose $100,000 over last year to $2.68 million, while earnings hit $3.03 million, up from a net loss of $1.32 million. The net income included a non-cash gain of approximately $6.31 million.

For the quarter ended Sept. 30, the operating loss was $1.94 million, down 14% from last year.

TXP makes assembly prototypes on a contract basis and builds optical network terminals.

The company is in the midst of a merger with Cambridge Industry Group, a deal that should close by yearend.

SALT LAKE CITY – CirTran Corp. reported September quarter sales of $3.1 million, down 12% from 2007.

The net loss was $2.3 million, versus net income of $82,898 a year ago. The results include a derivative liability-related loss of $867,138.

CirTran USA and CirTran-Asia, which include the company’s contract assembly operations, dragged down the results, the company said. The decline was mainly attributable to a one-time 2007 order not duplicated in 2008, a decrease in exercise product demand, and a drop in demand for cable assembly and electronic.

SOUTH PLAINFIELD, NJ – Fry’s Metals Inc. and Cookson America Inc. have received official ITAR (International Traffic in Arms Regulations) registration.

They are the parent companies of Cookson Electronics Engineered Products, a business unit of Cookson Electronics Assembly Materials Group.

ITAR regulates the manufacture, export and transfer of defense articles, information and services.

“The Military, Defense and Government segments constitute an important market for Cookson Electronics Engineered Products’ US business,” said Ravi Bhatkal, vice president and general manager, engineered products. “With this ITAR registration, we are pleased to provide our value-added stencil technologies that can help defense electronics companies develop and commercialize products quicker and help improve first-pass yields.”

SAN JOSE – Sun Microsystems will cut up to 18% of its global workforce – an estimated 5,000 to 6,000 jobs – in a move aimed at cutting annual costs by $700 million to $800 million.

MONTREAL – XDry Corp. has opened a Ville St-Laurent facility near Montreal to support sales and service in the Americas.

The new site merges the warehouse, inspection and testing facilities and is more than double the size of the company’s previous offices.

Kevin McCarten, president of Xdry, said the move “allows us to combine our operations under a single roof, optimizing the space and reducing the time needed to custom-configure desiccant dry cabinets.”

The company also named Edward Billingsley warehouse manager.

STAMFORD, CT – Gartner Inc. today issued a revised 2009 capital spending forecast of $39 billion, and dropped its capital equipment sales forecast to $26.8 billion.

TORONTO – Adeptron Technologies reported third-quarter sales rose 18% over last year to $9.6 million, as the EMS company swung to a net profit of $104,000.

HELSINKI – Nokia today said the global cellphone market would fall this quarter and throughout 2009.

The world’s leading cellphone provider dropped its 2008 forecast to 1.24 billion units worldwide, down from 1.26 billion. The handset market volumes and the overall telecom equipment market are expected to fall next year, the company added.

Nokia also lowered its industry outlook for the fourth quarter, forecasting volumes of 330 million, about 16 million lower than the average market forecast revealed in a Reuters poll earlier this month.

In a statement, Nokia said, "In the last few weeks, the global economic slowdown, combined with unprecedented currency volatility, has resulted in a sharp pull back in global consumer spending.” The company later said developed markets will fare worse, and developing markets will fare better.

Smartphones are expected to be the exception in 2009, putting companies like Apple and RIM in a better position versus their peers.

ÖSTERSUN, SWEDEN – Flextronics will reportedly cease production at its plant here, according to published sources.

Production will cease this month, the sources said, although the site will remain open until March. The site employed about 400 workers, the reports said.