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News

WASHINGTON – A new report issued this week by trade group AeA reiterates that America must act now to stem the loss of its competitive advantage. The report, “We Are Still Losing the Competitive Advantage: Now Is the Time To Act,” is a sequel to an AeA report of two years ago. The original asserted the U.S. was at risk of squandering its preeminence in science, technology and innovation in the face of greater emphasis on those areas by other nations coupled with domestic neglect of the factors that form the basis for its lead. The latest edition reinforces that conclusion and calls for immediate action. Recommended steps include improving K-12 math and science instruction; increasing federal funding for basic research in the physical sciences, engineering, math and computer sciences; giving green cards to all US educated masters and doctoral students, and ensuring access to broadband for every American within five years. The report includes other recommendations for timely action, a timeline of what has happened in the last two years to move the competitiveness debate forward, testimonials from executives in the high-tech industry, and updated data and analysis. To download the report, go to www.aeanet.org/competitiveness.

SANTA CLARA, CA – UP Media Group today announced a seasonal switch in schedule for PCB Design Conference East and West. Beginning in 2008, PCB West will be held in the fall in the Silicon Valley. PCB East will move to the spring, with the 2008 show being held in the Chicago area. The exact dates and location will be announced soon.

MILPITAS, CA -- Solectron Corp., one of the world's five largest EMS companies, will lay off about 3% of its employees and take a restructuring and impairment charge of $35 million to $45 million. The company reported second-quarter sales of $2.90 billion fell 3% sequentially but rose 16% year-over-year.

The sales uptick was offset by the company's announced layoff of 1,300 and 1,500 employees over the next 12 months as part of a previously announced restructuring plan.

TORONTO -- Celestica Inc. named senior vice president of finance Paul Nicoletti its interim chief financial officer.

He supersedes Tony Puppi, who is retiring April.

A search is currently underway to select a permanent replacement.

Nicoletti has been with Celestica since the its spinoff from IBM. Prior to his current position, he was the vice president, global financial operations.

EL SEGUNDO, CA – PMP/MP3 shipments are expected to more than double between 2005 and 2011, according to iSuppli Corp. Global PMP/MP3 shipments will rise to 268.6 million units in 2011, a CAGR of 13% from 2005, the firm predicts. In 2007, player shipments are expected to rise to 216.9 million units, up 21.8% from 178.1 million in 2006. Global factory revenue will rise to $21.5 billion by 2011, a CAGR of 7.4% from $14 billion in 2005. Revenue this year will rise to $20.6 billion, up 14.4% from $18 billion last year. PMP shipments are expected to grow faster than those of music-only MP3 players during the coming years, with PMPs expected to account for more than 66% of PMP/MP3 unit shipments by 2011, up from a mere 4% in 2005, according to iSuppli. iSuppli forecasts the broadband music market will grow to $5 billion in revenue by 2010, up from $1.6 billion in 2006. Still, some challenges remain for PMPs/MP3 players, including longer replacement cycles because of removable memory and stronger competition from media-capable mobile phones.

CANOGA PARK, CA – IPC has published the Stencil and Misprinted Board Cleaning Handbook, IPC-7526. A copy is available as a free download at www.SmartSonic.com/article.html.

According to the text, the handbook “addresses the removal of solder paste and uncured/unreacted SMT adhesives from stencils, misprinted circuit boards (PCBs) and application tools connected to the soldering paste application process. The purpose of the handbook is to provide a basic understanding of stencil/misprint cleaning processes.”

SANTA CLARA, CA - Intel Corp. will invest $2.5 billion to build a new chip fab in China, with construction slated to begin this year. The factory, which will produce computer chipsets, will come online in the first half of 2010, chief executive Paul Otellini said.

The location puts Intel near Dell and Lenovo, two of the world’s five largest makers of PCs. About half of the world’s PC’s are built in China.

The investment raises Intel’s spending in China to a reported $4 billion.

STMicroelectronics, Taiwan Semiconductor Manufacturing Co. and Hynix Semiconductor are among chipmakers building factories in China.

Sales of chips to China will rise to $111 billion in 2011, from $39 billion in 2005, according to IC Insights.

NEWARK, NY -- IEC Electronics today said it partially recovered a nearly $400,000 writeoff the EMS firm took during its first-quarter ended Dec. 29.

The company took a $389,000 charge for outstanding receivables following the closing by Mangrove Systems, an IEC customer. However, Carrier Access Corp. has since acquired Mangrove's IP networking product assets and paid the outstanding balance, IEC said.

PALO ALTO -- Hewlett-Packard, the world's top ranked PC maker, filed suit Tuesday against Acer Inc., alleging infringement on five separate patents and seeking an injunction and unspecified damages

H-P claims Acer, the fourth largest PC maker, infringed on patents for power management, clock switching, and other technologies.

CONCORD, CA – Test maker Digitaltest announced 2006 sales grew in the double-digits, as production output rose 10%. The privately held company did not specify actual sales. In the US, Digitaltest had its best year, according to Mark Harding, US general manager. The company said its Grünwettersbach, Germany, facility is operating at full capacity.

ST. PETERSBURG, FL – Jabil Circuit said second-quarter revenue was $2.9 billion, up 27% year-over-year, beating analysts’ forecast of $2.83 billion. However, the company said previously announced restructuring costs would be at the high end of the estimated range of $200 million to $250 million. The top tier EMS firm forecast third-quarter revenue of $2.9 billion to $3 billion.

ENDICOTT, NY – The U.S. Department of Defense has awarded Endicott Interconnect Technologies multiple contracts totaling $164 million to produce card frame assemblies, including organic semiconductor packaging, module assemblies, printed circuit boards and assemblies, and engineering services. The company did not specify what product the assemblies would be used for. EI recommended its HyperBGA organic substrate as an alternative to ceramic semiconductor packages, leading to the module assembly business and the initial $6.5 million award. Subsequent development and collaboration lead to additional technical scope for follow-on contracts, including PCB fabrication, complex board assembly and higher level integration into card frame subsystems. Contracts totaling $37.5 million product certification, which included build of the formal qualification parts and all related documentation, reporting, quality and reliability requirements. The remaining $120 million contract was awarded for the first production order of fully integrated card frame assemblies, to be delivered by year-end.