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News

TAIWAN – Asustek Computer will split into three companies Jan. 1 to separate its branded product business from its contract manufacturing operations, the company said today.

SAN FRANCISCO – The latest poll of the nation’s CIOs says IT budgets will grow 7.2% during the next year, up from 5.1% in March, says Deutsche Bank. The June poll results rebounded strongly, reversing four consecutive down quarters.

Spending projections improved for all but the largest companies, which DB believes bodes well for improving corporate spending in the second half of the year.

Results for small (101-500) and very small firms (1-100) strengthened in June, with CIOs expecting 11% and 9% growth in the next 12 months (vs. 10% and 2% in March), respectively. Medium firms (501-1,000) were optimistic, expecting 7% growth (vs. 4% in March), while large firms (1,001-5,000) and very large firms (>5,000) were less optimistic, with CIOs expecting 5% growth (vs. 3% and 7% in March, respectively), says the report.

Storage Systems was the top spending priority in the June Poll, with 54.1% of respondents planning to increase spending (vs. 46.3% in March). Security Software took the second spot with 41.6% of respondents planning to increase spending (vs. 43.5% previously), followed by Computer Hardware at 40.8% (vs. 45.5% previously).

Medium-size companies led results for Storage and Computer Hardware for the third consecutive quarter, with 78.6% (vs. 62.5% previously) predicting increased Storage budgets. In addition, Computer Hardware was also a priority for medium-size firms, with 60.0% (vs. 56.3% in March) of CIOs expecting increased spending.

Of the respondents to DB questions, 54.4% said they had implemented server virtualization, while 21.6% cited they were seriously considering it; 7.1%, 15% and 21.3% cited they had reduced server spending by roughly 50%, 30% and 10%, respectively. However, 15% cited they had not reduced server spending through virtualization.

Universal Contacts, for SMT, provide an electrical connection between a device and a PCB. Come as a single piece stamped product, incorporating pre-load and anti-lift features, designed to replace traditional interfaces requiring customized contacts. For use to connect a number of device components in any direction and configuration using the same interface, reducing qualification time. Come in heights of 1.3, 1.8, 2.5, 3.5 and 4 mm. So-called "solderwells" are said to prevent solder wicking up the contact. Are WEEE and RoHS compliant.

ITT Electronic Components, www.ittcannon.com

BANGOR, ME -- The state of Maine has enacted legislation that permits continued use of the highly-effective flame retardant known as Deca in the utility, automobile and semiconductor industries, each of which is vital to the state’s economy.

Under the bill, the use of Deca in mattresses, mattress pads and textiles used in residential furniture would be prohibited beginning in 2008, and in the casings of televisions and computers beginning in 2010. Deca is not used in residential mattresses or furniture, and has never been used widely in computers, further limiting the practical impact of the prohibition.

MUNICH -- A conference pairing the fashion and high-tech industries takes place next week in Munich.

The first Wearable Technologies Congress takes place July 8 to 10, in the International Congress Centre Munich at the New Munich Trade Fair Centre.

According to conference organizers, the event aims to make possible the transfer of relevant know-how, the exchange of experiences among the participants of the involved industries and the exposition of visions for the next WT-product generations. The event is focused on future-oriented and marketable products, as well as new sales potentials for manufacturers of WT-products with emphasis in added value.

Attendees are expected to include experts in commerce, product development, production from the sports, fashion, electronics and consumer electronics sectors.

Among the topics presented:

High-tech meets low-tech – strategy for added-value-selling.
RFID – Chance and opportunities for the sport and textile industries.
New market perspectives through modern technology transfer.

WASHINGTON -- The Institute of Supply Management on Monday morning is expected to release data showing an improved June manufacturing index, and on Friday, the Labor Department is expected to report a stable unemployment rate.

The numbers, if accurate, suggest the economy is recovering after a first quarter dip.

MILPITAS, CA – Solectron Corp. reported net income for the third quarter fell 71% to $42 million year-over-year.

The company’s sales were $2.99 billion for the quarter, an increase of 3% over the previous quarter, and an increase of 10% year-over-year.

On June 4, Flextronics announced it would acquire Solectron. The merger agreement has been filed with the SEC. The transaction is expected to close in the fourth quarter. In a conference call with analysts last night, Solectron did not provide guidance or details on the pending acquisition.

A rebound in sales to Cisco following its Lean initiative and share gains from Celestica drove the sequential increase, said analyst Carter Shoop of Deutsche Bank. Excluding Cisco, Solectron's sales were off 4% sequentially. Consumer electronics sales dropped 15% sequentially and 6% versus last year.

The operating margin was 1.3%, up 0.l points sequentially. Gross margins fell 0.2 points. Inventory days fell one day to 58 days.

VANCOUVER – Creation Technologies, a top 50 EMS provider, plans to acquire Taytronics Inc. of St. Peter, MN. The acquisition will provide Creation with a second facility in the central U.S. and is expected to be finalized July 29. Other financial details were not disclosed.

TOKYO – Meiko Electronics Co., known for PWB fabrication, is building an assembly plant in Vietnam, according to published reports.

The company is investing $32.4 million in an 18,000 sq. meter facility in Ha Tay Province, Business in Asia Today reported. Meiko will break ground in August, and operations are scheduled to begin next June.

The assembly plant is situated next to a PWB plant scheduled to come online in 2007.

Meiko has 4,500 employees and generates nearly $400 million in sales from its six facilities in Japan and China.

LYSAKER, NORWAY – Kitron ASA will acquire EDC i Munkfors' subsidiary EDC Elsis UAB in Kaunas, Lithuania, for SEK 14 million.

The deal is subject to customary closing conditions, which are expected to be completed by August.

Further agreements may be forthcoming, the companies said.

Kitron, which supplies electronics to the medical, defense and telecom industries and performs EMS work, has annual sales of 1.7 billion NOK and employs 1,300.

The EDC site employs about 40 people at its 2,000 sq. meter manufacturing facility.

MINNEAPOLIS, MN – The opening session and annual meeting/keynote address during SMTA International will be held Oct. 9 and 10, respectively, in Orlando.

The free opening session will focus on SMTA’s End Game: Lead-Out, Labels-On, Reliability-In. Marking, Symbols, and Labels for Pb-Free Identification will be led by Steve Greathouse of Greathouse Solutions, and Pb-Free Printed Circuit Board Reliability will be led by Werner Engelmaier of Engelmaier Associates.

The SMTA annual meeting will feature Andrew Alduino, Senior Optical Researcher in the Photonics Technology Lab of Intel Corp. Implementation Challenges of Future Optical Interconnects will address the challenges facing integration to photonics technology, including thermal management, multi-chip package concerns, alignment of components, and more.

The 2006 conference award winners will be recognized, including Best of Conference Presentation, Dave Hillman, Rockwell Collins; Best Proceedings Paper, Robert Darveaux, Ph.D., Amkor Technology; and Best International Paper, Heather McCormick, Celestica, Inc.

At the meeting, the SMTA will present its Association Awards and the Charles Hutchins Educational Grant for $5,000, an award that is given annually to a graduate-level student pursuing a degree and working on thesis research in electronics packaging or related field. (Circuits Assembly funds the grant using proceeds of its Service Excellence Awards.)

The cost for the SMTA annual meeting is $40 for members and $50 for nonmembers.

SHENZHEN — Nepcon EMT South China will take place Aug. 28-31 at the Shenzhen Convention and Exhibition Center.

This year's show will be held in conjunction with Automotive Electronics China and Assembly Expo China, bringing together 450 exhibitors from 22 countries, according to the show organizers.

The Nepcon event is expected to draw up to 18,000 attendees, says Reed Exhibitions. The show includes a concurrent technical conference.

Also running that week: the SMTA China South Conference.