EL SEGUNDO, CA – Global third-quarter large-sized LCD panel revenue is expected to increase by more than 17% sequentially and 45% year-over-year, iSuppli Corp. believes.
 
“iSuppli estimates that revenue rose to $16.7 billion in the second quarter, up from $13.4 billion in the first,” said Sweta Dash, director, LCD and projection research for iSuppli. “Despite an anticipated softening in demand growth in the fourth quarter, with the strong third-quarter results we expect large-sized LCD panel revenue for all of 2007 to rise by more than 27%” year-over-year.
 
As for shipments, the large-sized LCD market is expected to reach 370 million units by the end of the year.
 
“iSuppli expects 20% unit growth for monitor panels, 35% growth for notebook panels and 51% growth for the TV panel market in 2007 compared to 2006,” Dash said.
 
LG.Philips LCD started the earnings season off impressively, announcing an 18% increase in revenue sequentially and a 43% rise year-over-year, says the firm.
 
Samsung followed with an equally impressive 20% increase in LCD revenue compared to the second quarter, and a 34% increase compared to the third quarter last year.
 
Suppliers of large-sized panels fell short of demand in the quarter as a result of customers placing orders for the holiday season earlier than usual. Other factors behind the shortage included cuts in panel suppliers’ fab utilization rates in the first half, slowed production expansion plans and greater capital-spending discipline among LCD makers, according to iSuppli.
 
Suppliers of desktop-computer monitor, notebook and 32" and smaller TV panels remained constrained throughout the quarter, spurring significant price increases.
 
Most mainstream notebook and monitor panel prices increased by 7 to 10% from June to September, after a 10 to 15% price increase from the previous three months. The average 32" and below TV panel price rose by only 2 to 3% from June to September after a 4 to 5% price increase from April to June, according to iSuppli.
 
The 40/42" TV panel price decreased by less than 5% from June to September, the firm says.
 
Profitability among the large-sized LCD suppliers was better in the third quarter than the second. Monitor panels were particularly profitable.
 
TV panel profitability lagged behind the notebook and monitor panels in the quarter. This resulted in a partial shift in production capacity from TV panels – especially the 32" size – to monitor panels.
 
The phenomenon contributed to the supply tightness, resulting in panel price increases and higher profitability compared to the prior quarter. The 32" and 40/42" WXGA TV panels generated a 5 to 15% profit margin in the quarter.
 
The LCD-TV market is shifting to larger sizes because of the increased availability of bigger panels at lower prices. Furthermore, the move to thin form-factor and wide-format LCD display technology means consumers can more easily fit televisions with larger screen sizes into their homes. This trend, combined with HD resolutions, means such large-screen sets are practical for more consumers.
 
This shift to larger-sized panels will boost revenue and profitability for the TV panel makers. The monitor panel market also is shifting to the 19", 20" and 22" sizes.
 
The global LCD-TV panel market in 2008 is expected to expand to 102.5 million units, up 27.2% from 2007. This will mark the first time shipments will surpass the 100 million mark, says iSuppli.
 
 
 

FRAMINGHAM, MA – Worldwide PC shipments grew by 15.5% in the third quarter, according to IDC.

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SAN JOSE, CA – Jan Vardaman, president of TechSearch International Inc., will keynote the annual MicroElectronics Packaging and Test Engineering Council technical symposium in San Jose on Nov. 8.
 
In her keynote presentation, Markets and Trends in Laminate Substrates, Vardaman will present findings of the SEMI/TechSearch International Global Semiconductor Packaging Materials Outlook and provide insight into trends driving substrate developments, trends in feature size, and materials, including production capacity considerations and pricing trends.
 
Vardaman is the founder of TechSearch International, and the coauthor of How to Make IC Packages (published in Japanese), a columnist with Circuits Assembly, and author of numerous publications on emerging trends in semiconductor packaging and assembly. 
 
In addition to the keynote presentation, the program has been segmented into the following focus sessions: Substrate Manufacturing and 1st Level Interconnect Technology; Design and Simulation: Silicon, Substrate, System; 2nd Level Interconnect and Reliability, and Emerging Substrate Technologies.
 
To register, visit www.meptec.org.
 

EL SEGUNDO, CA – To say that Japanese OEMs have been shy about using contract manufacturing services could be the understatement of the year, says iSuppli Corp.
 

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WELLESLEY, MA – The world market for mobile telematics was worth some $37.5 billion in 2006, a figure expected to reach $52 billion in 2012, a CAGR of 3.5% over the next five years, according to BCC Research.
 
The market includes applications of automotive, intelligent transportation systems (road installations and operations centers), aircraft, railroads, construction, agriculture and maritime technologies. Of these sectors, automotive accounts for the largest share of the market and is expected to reach more than $48 billion in 2012, at a 3.6% CAGR, says BCC. Growth in automotive telematics will be driven by government-mandated use of safety equipment.
 
Intelligent transport systems (road installations) currently have the second largest share of the market at $649 million, projected to reach more than $1.8 billion by 2012, a CAGR of 17.9%, according to BCC. However, intelligent transport systems (operations centers), now worth $375 million, will be worth $2 billion by 2012, a CAGR of 31.7%. The increasing sale of public roadways to private owners will speed the introduction of intelligent transport systems, with a corresponding rise in the need for mobile telematics components.

LEUVEN, BELGIUM – IMEC and the Microsystems Packaging Research Center at the Georgia Institute of Technology invite interested parties to join a research program on next-generation flip-chip and substrate technology. The program addresses key IC-to-package to board packaging interconnect issues for 32 nm ICs and beyond.
 
IMEC and Georgia Tech will explore, develop and invent solutions to interconnect high-density ICs with tight I/O pitches (20-40 µm peripheral) to low-cost packages and PCBs. The program targets novel packaging approaches to reduce the mechanical stress on the IC after packaging and assembly.
 
The program plans to provide solutions for the four major barriers to next-generation flip-chip packaging of scaled ICs and ultra-low-k dielectric ICs. Its aim is to explore and develop organic package interposer substrates that minimize stress at die and package level and enhance the wiring density, the fine I/O pitch routing capability and the high-frequency signal performance of substrates; a new generation of fine-pitch flip-chip UBM (under-bump metallization) and barrier metallization that meet the electromigration and thermo-mechanical reliability targets of flip-chip scaling; novel solder and non-solder interconnect approaches, including advanced underfill materials and processes to meet future current density, geometry and reliability requirements; thermo-mechanical modeling, design and verification for improved reliability.
 
The two-year program is open for the entire supply chain. The program plans to bring together 20 to 30 expert researchers from industry and academia worldwide.

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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.
 

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.
 

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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.
 

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