News
TEDDINGTON, UK – A report describing a new combinational test method for measuring relative reliability of electrically conductive adhesive joints on subtractive thermoplastic substrates was just released by the National Physical Laboratory.
EL SEGUNDO, CA – As the mobile-handset market goes, so goes the mobile-handset semiconductor market – and right now both areas are going through a period of consolidation that may lead to a significant winnowing of baseband chip suppliers, says iSuppli Corp.
In wireless handsets, numerous smaller players headquartered in China have exited the business during the past few years. This, coupled with the bankruptcy of BenQ-Siemens, has led to an increasing concentration of market share among the Top-5 mobile-handset OEMs, according to iSuppli.
In 2006, the Top 5 OEMs accounted for 83% of global unit shipments, up from 75.6% in 2005. This has led to declining opportunities for mobile-handset baseband semiconductor suppliers, the firm says.
“Quite a few baseband semiconductor suppliers are now battling for sockets at a dwindling number of handset OEMs,” said Derek Lidow, president and CEO of iSuppli. “With a smaller number of handset OEMs accounting for an overwhelming portion of sales, opportunities for baseband IC suppliers are getting more difficult to come by.”
Meanwhile, the overall mobile-handset market is experiencing decelerating growth. After rising by 20.1% in 2006, growth in worldwide mobile-handset unit shipments is expected to slow to 13.1% in 2007, and then to 11.6% in 2008, according to iSuppli. The annual growth rate will continue to decelerate during the following years as the mobile-handset market becomes more mature because of high penetration rates in the world’s developed regions.
This, combined with a slowdown in handset shipment growth, has led to a deceleration in the growth of the mobile-handset baseband IC market. After rising by 14.1% in 2006, global revenue growth will slow to low single-digit percentages this year, the company adds.
Signs of the stresses being exerted on the baseband semiconductor suppliers are appearing, as growth opportunities become harder to find. Consequently, staying competitive in the race to supply the five leading OEMs requires increased levels of capital, capability and innovation.
In August, the ranks of baseband suppliers was reduced by one as LSI Logic Corp. announced it would sell off its mobility products business unit to Infineon Technologies AG.
And in September the number of baseband suppliers was further reduced when MediaTek Inc. purchased Analog Devices Inc.'s baseband chip product line.
Another example is STMicroelectronics, supplier of analog handset baseband semiconductors, which has struggled in recent quarters as its revenue growth has stalled. The company’s revenue was $197 million in the second quarter, down 10.5% year-over-year, says iSuppli.
The baseband IC business has a handful of players with annual revenues of or on pace to be in the $1 billion range: Qualcomm, Texas Instruments, MediaTek and Freescale Semiconductor.
This shows that as the mobile handset market is consolidating into a small number of large players, so too is the mobile handset semiconductor space, says iSuppli.
Beyond customer consolidation, baseband chip suppliers face another challenge: rising costs. With mobile handsets continuing to add features, baseband IC chips are becoming more expensive to develop.
Only a few companies have the margins to maintain development costs in this area. This dynamic is likely to further consolidate market share, resulting in a small number of large-sized baseband suppliers.
It’s clear that the baseband market cannot support all the current players. However, how many players will be left when the current phase of consolidation is over is unclear.
In wireless handsets, numerous smaller players headquartered in China have exited the business during the past few years. This, coupled with the bankruptcy of BenQ-Siemens, has led to an increasing concentration of market share among the Top-5 mobile-handset OEMs, according to iSuppli.
In 2006, the Top 5 OEMs accounted for 83% of global unit shipments, up from 75.6% in 2005. This has led to declining opportunities for mobile-handset baseband semiconductor suppliers, the firm says.
“Quite a few baseband semiconductor suppliers are now battling for sockets at a dwindling number of handset OEMs,” said Derek Lidow, president and CEO of iSuppli. “With a smaller number of handset OEMs accounting for an overwhelming portion of sales, opportunities for baseband IC suppliers are getting more difficult to come by.”
Meanwhile, the overall mobile-handset market is experiencing decelerating growth. After rising by 20.1% in 2006, growth in worldwide mobile-handset unit shipments is expected to slow to 13.1% in 2007, and then to 11.6% in 2008, according to iSuppli. The annual growth rate will continue to decelerate during the following years as the mobile-handset market becomes more mature because of high penetration rates in the world’s developed regions.
This, combined with a slowdown in handset shipment growth, has led to a deceleration in the growth of the mobile-handset baseband IC market. After rising by 14.1% in 2006, global revenue growth will slow to low single-digit percentages this year, the company adds.
Signs of the stresses being exerted on the baseband semiconductor suppliers are appearing, as growth opportunities become harder to find. Consequently, staying competitive in the race to supply the five leading OEMs requires increased levels of capital, capability and innovation.
In August, the ranks of baseband suppliers was reduced by one as LSI Logic Corp. announced it would sell off its mobility products business unit to Infineon Technologies AG.
And in September the number of baseband suppliers was further reduced when MediaTek Inc. purchased Analog Devices Inc.'s baseband chip product line.
Another example is STMicroelectronics, supplier of analog handset baseband semiconductors, which has struggled in recent quarters as its revenue growth has stalled. The company’s revenue was $197 million in the second quarter, down 10.5% year-over-year, says iSuppli.
The baseband IC business has a handful of players with annual revenues of or on pace to be in the $1 billion range: Qualcomm, Texas Instruments, MediaTek and Freescale Semiconductor.
This shows that as the mobile handset market is consolidating into a small number of large players, so too is the mobile handset semiconductor space, says iSuppli.
Beyond customer consolidation, baseband chip suppliers face another challenge: rising costs. With mobile handsets continuing to add features, baseband IC chips are becoming more expensive to develop.
Only a few companies have the margins to maintain development costs in this area. This dynamic is likely to further consolidate market share, resulting in a small number of large-sized baseband suppliers.
It’s clear that the baseband market cannot support all the current players. However, how many players will be left when the current phase of consolidation is over is unclear.
Unless one of the top-tier players buys another supplier of equal size, there’s no one else left to buy. This may set the stage for war among the existing players, leading to market consolidation, says iSuppli.
WASHINGTON, DC – Recent scientific tests have revealed that Apple's iPhone contains hazardous chemicals, says Greenpeace. According to the environmental organization, tests have uncovered two types of hazardous substances,which have already been eliminated by other mobile phone makers.
In May, after thousands participated in the Green my Apple campaign, Steve Jobs claimed, "Apple is ahead of, or will soon be ahead of, most of its competitors" on environmental issues, reports Greenpeace.
The organization says it watched closely when the iPhone was launched in June for any mention of its green features, but none was mentioned. As a result, Greenpeace that month bought an iPhone and sent it to its UK research laboratories. Analysis revealed the iPhone contains toxic brominated compounds (indicating the prescence of brominated flame retardants [BFRs]) and hazardous PVC, says Greenpeace. The findings are detailed in group’s report, "Missed Call: The iPhone's Hazardous Chemicals."
An independent scientific laboratory tested 18 internal and external components of the iPhone and confirmed the presence of brominated compounds in half the samples, including in the phone's antenna, in which they made up 10% of the total weight of the flexible circuit board, says Greenpeace. A mixture of toxic phthalates was found to make up 1.5% of the plastic coating of the headphone cables, the group adds.
Dr. David Santillo, senior scientist at Greenpeace Research Laboratories, commented, "Two of the phthalate plasticisers found at high levels in the headphone cable are classified in Europe as 'toxic to reproduction, category 2' because of their long-recognized ability to interfere with sexual development in mammals. While they are not prohibited in mobile phones, these phthalates are banned from use in all toys or childcare articles sold in Europe. Apple should eliminate the use of these chemicals from its products range."
The disassembling also revealed the iPhone's battery was glued and soldered into the handset. This hinders battery replacement and makes separation for recycling, or appropriate disposal, more difficult, and therefore adds to the burden of electronic waste, Greenpeace believes.
The organization reports Nokia is PVC free, and Motorola and Sony Ericsson already have products on the market with BFR-free components. Apple's competitors have also identified extra toxic chemicals they intend to remove in the future – beyond current minimum legal requirements. Nokia and Sony Ericsson also have global takeback policies for phones and accept responsibility for reuse and recycling.
Apple does not have a global free takeback policy, so the eventual fate of the between four million and 10 million iPhones expected to be sold in its first year is uncertain, concludes Greenpeace.
In May, after thousands participated in the Green my Apple campaign, Steve Jobs claimed, "Apple is ahead of, or will soon be ahead of, most of its competitors" on environmental issues, reports Greenpeace.
The organization says it watched closely when the iPhone was launched in June for any mention of its green features, but none was mentioned. As a result, Greenpeace that month bought an iPhone and sent it to its UK research laboratories. Analysis revealed the iPhone contains toxic brominated compounds (indicating the prescence of brominated flame retardants [BFRs]) and hazardous PVC, says Greenpeace. The findings are detailed in group’s report, "Missed Call: The iPhone's Hazardous Chemicals."
An independent scientific laboratory tested 18 internal and external components of the iPhone and confirmed the presence of brominated compounds in half the samples, including in the phone's antenna, in which they made up 10% of the total weight of the flexible circuit board, says Greenpeace. A mixture of toxic phthalates was found to make up 1.5% of the plastic coating of the headphone cables, the group adds.
Dr. David Santillo, senior scientist at Greenpeace Research Laboratories, commented, "Two of the phthalate plasticisers found at high levels in the headphone cable are classified in Europe as 'toxic to reproduction, category 2' because of their long-recognized ability to interfere with sexual development in mammals. While they are not prohibited in mobile phones, these phthalates are banned from use in all toys or childcare articles sold in Europe. Apple should eliminate the use of these chemicals from its products range."
The disassembling also revealed the iPhone's battery was glued and soldered into the handset. This hinders battery replacement and makes separation for recycling, or appropriate disposal, more difficult, and therefore adds to the burden of electronic waste, Greenpeace believes.
The organization reports Nokia is PVC free, and Motorola and Sony Ericsson already have products on the market with BFR-free components. Apple's competitors have also identified extra toxic chemicals they intend to remove in the future – beyond current minimum legal requirements. Nokia and Sony Ericsson also have global takeback policies for phones and accept responsibility for reuse and recycling.
Apple does not have a global free takeback policy, so the eventual fate of the between four million and 10 million iPhones expected to be sold in its first year is uncertain, concludes Greenpeace.
EDINA, MN -- Jeff Kennedy, director of advanced manufacturing engineering at Celestica Inc., last week received SMTA’s Founder’s Award, the trade group’s highest individual honor.
HIBBING, MN — Kimball Electronics will close its electronics manufacturing plant in Hibbing by next March and lay off some 200 employees, according to local news reports.
MADISON, AL -- STI Electronics, a provider of EMS, training and lab services, plans to break ground soon on a 53,000 sq. ft. building near the company's current location outside Huntsville.
President David Raby told Circuits Assembly the company hopes to move into the new building before 2008.
STI has two SMT lines and offers a host of training programs to industry standards, as well as extensive lab and analysis capabilities.
Ed.: This story was updated Oct. 16. The original story reported that ground had been broken.
President David Raby told Circuits Assembly the company hopes to move into the new building before 2008.
STI has two SMT lines and offers a host of training programs to industry standards, as well as extensive lab and analysis capabilities.
Ed.: This story was updated Oct. 16. The original story reported that ground had been broken.
BEDFORDSHIRE, UK -- Jaltek Group and Connect Systems International last week signed an agreement to cross-market and manufacture electronics products.
Jaltek offers design and prototype services, while Connect Systems has 19 high-volume SMT lines in plants Europe in Belgium, The Netherlands, Germany, Czech Republic, Slovakia and Romania.
Connect Systems is a member of the IPTE Group, which recently acquired and integrated EMS provider Barco Manufacturing Services Division. It reported fiscal 2006 sales of 170 million euros and employs about 1,700 workers.
Jaltek employs 90 staff across its sites in Bedfordshire, and Wokingham, Berkshire.
Jaltek offers design and prototype services, while Connect Systems has 19 high-volume SMT lines in plants Europe in Belgium, The Netherlands, Germany, Czech Republic, Slovakia and Romania.
Connect Systems is a member of the IPTE Group, which recently acquired and integrated EMS provider Barco Manufacturing Services Division. It reported fiscal 2006 sales of 170 million euros and employs about 1,700 workers.
Jaltek employs 90 staff across its sites in Bedfordshire, and Wokingham, Berkshire.
NORTHFIELD, IL -- Fewer owners and managers of small manufacturing companies during the third quarter expressed confidence in their business prospects for the next 12 months, the Small Business Research Board reported today. Forty-five percent expect revenues to increase during the next 12 months, a seven point decline sequentially.
SACRAMENTO -- California Governor Arnold Schwarzenegger yesterday vetoed a bill that proposed to significantly expand the RoHS statutes mandated by the California Waste Recycling Act.
DALLAS, TX – Integrated Test Corp., manufacturer of automated test equipment for PCBs, has expanded its presence in Asia with a sales and applications office in Taiwan.
This location will service the Pacific Rim, other Asian companies, and offshore operations of existing U.S. customers, Integrated Test says.
FRANKLIN, MA – Speedline Technologies will offer a free Webinar on stencil design and its role in defect reduction and process cycle time improvement.
The Webinar will take place Nov. 15 at 11 a.m. EST.
Areas of discussion will include an overview of the printing process, basics of stencil design, and the impact of design on defect reduction and cycle time. In addition, several “real world” stencil designs successful in eliminating manufacturing defects will be discussed.
To register, visit www.speedlinetech.com/seminars.
The Webinar will take place Nov. 15 at 11 a.m. EST.
Areas of discussion will include an overview of the printing process, basics of stencil design, and the impact of design on defect reduction and cycle time. In addition, several “real world” stencil designs successful in eliminating manufacturing defects will be discussed.
To register, visit www.speedlinetech.com/seminars.
LOHJA, FINLAND — An Elcoteq subsidiary today signed a deal to sell its manufacturing facility here to Sponda Kiinteistörahasto for 6.3 million euros. The transaction will be executed as a real estate deal, with ownership being transferred from the subsidiary, Kiinteistö Oy Piiharju, to Sponda by Oct. 31.
Press Releases
- Surf-Tech Manufacturing Corp. Ensures World-Class Quality with Advanced Conformal Coating Services
- Luminovo Partners with Sluicebox to Offer an Industry-First Instant Product Carbon Footprint for Electronics
- The Assembly Show and SMTAI Announce Colocation in October
- SIA Applauds CHIPS Act Incentives for GlobalWafers Projects in Texas and Missouri