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News

HELSINKI – Elcoteq cut its forecasts for 2007 because of intensifying competition in Europe, warning it would make no money from operations this year. The EMS firm, one of the eight largest in the world, reported a first-quarter operating loss of 23 million euros ($31 million). In a statement, the company said it would report breakeven operating results in 2007, not including one-time charges, on a slight uptick in revenues. It had previously guided for sales growth of around 10% and increased profits. Elcoteq said it would take a first-quarter writedown of 30 million euros in one-time charges as part of a cost-reduction program. It also upped restructuring costs guidance to 35 million euros, from an earlier estimate of 20 million euros.

SAN JOSE – Stanford professor of engineering Roger Howe will keynote the 5th Annual MEMS Packaging symposium, the MicroElectronics Packaging and Test Engineering Council announced. On May 16, Howe will discuss recent developments in the field. Howe, who has decades of experience with MEMS, also chaired the MEMS Technical Committee of IEEE Electron Devices Society from 1998 – 2001. The conference takes place May 16-17 in San Jose. Other presentations include MEMS-based market evolution; emerging trends; packaging technologies, and consumer and industrial applications. Graduate students, professors and university researchers will also present their latest work on MEMS packaging and related topics. To register or learn more about the symposium, contact Bette Cooper, bcooper@meptec.org or visit www.meptec.org.

BANNOCKBURN, IL – IPC is accepting comments on IPC-9592, Performance Parameters for Power Conversion Devices. The document standardizes the performance parameters for power conversion devices, including the computer and telecommunications industries. The specification also sets the requirements for design, qualification and conformance testing, manufacturing quality processes, and regulatory requirements. Comments are due June 2. A copy of the document and the comment form are available at ipc.org/PCSMeeting. The nearly 100-page proposal was developed by the IPC Power Conversion Subcommittee, chaired by Dr. Scott Strand of IBM. The next committee meeting will take place June 26-27 in Schaumburg, IL.

BRADENTON, FL – Connector analyst Ron Bishop will keynote the IICIT Connector & Interconnection Technology Symposium in May. The keynote will be about The World Connector Industry with special focus on the outlook for 2007 and 2011. Bishop is president of Bishop & Associates Inc., a consulting firm, and a noted expert on the connector industry. The conference takes place May 8-9, in Dedham, MA. For more information and registration, visit http://www.iicit.org.

SAN FRANCISCO – On April 2, Korea's National Assembly passed legislation similar to a series of European Union regulations, including the RoHS, WEEE and ELV (End of Life Vehicles) directives. The regulation goes into effect Jan. 1, 2008.

But while the Act Concerning the Resource Recycling of Electrical/Electronic Products and Automobiles has elements of the EU directives, it is also unique, according to Michael Kirschner of Design Chain Associates. Like EU’s RoHS Directive and China’s legislation, he says, the regulation omits a detailed scope (certain classes of automobiles and electronics initially equivalent to that of Korea’s preexisting Act on the Promotion of Saving and Recycling of Resources), substance restrictions and concentration limits, design for environment requirements, and so on. Presidential Decrees and Ordinances from the Ministry of the Environment will define these concepts.

Items to be specified in the next step of legislation include precise definitions and lists of “Electrical and Electronic Equipment”; “Automobile,” and “Hazardous Substances” and their threshold limits and a Mandatory Annual Recycling Objective for Automobiles, along with evaluation methods. Test Methods of Hazardous Substances will be published. And an individual or collective scheme for recycling will be set up, among other actions.

EL SEGUNDO, CA – Growing video usage, Microsoft Vista, and aggressive pricing will all contribute to skyrocketing sales of wide-format LCD desktop computer monitors during the next five years, making this the dominant format by 2009, iSuppli predicts. Worldwide sales of wide-format LCD monitors are set to grow to 146.9 million units by 2011, rising at a CAGR of 74.3% from only 9.1 million units in 2006, according to the firm. In 2007, end-user sales will nearly quadruple to 35.8 million units. Revenue will grow to $20.9 billion by 2011, rising at a 55% CAGR from $2.3 billion in 2006. In 2007, revenue will triple to $6.7 billion. By 2009, wide-format LCD monitors will account for the largest share of the LCD monitor market, surpassing traditional-format displays, iSuppli predicts. The biggest battleground in 2007 is expected to be in the 19", 20" and 22" wide markets. The 20" wide panels offer a higher resolution than the 19" wide-format LCD panels, and are generally considered to be a better fit for Microsoft’s Windows Vista, but price has trumped performance. Twenty-inch panel suppliers have responded with more aggressive price moves. With the winner of this battle poised to become the market leader in the LCD monitor market, the stakes are considerable. Adoption rates for wide-format monitors are expected to be higher for consumers than for corporations.

OSLO, NORWAY – Telecom power systems supplier Eltek is buying Valere Power for cash and stock worth up to $130 million, the company said today. Eltek will pay Valere shareholders $83 million in cash plus stock equal to 9.1% of Eltek Energy AS and 9.9% of a joint venture. The total value of the acquisition is between $120 and $130 million, Eltek said. Valere Power is backed by private equity investors, including Alcatel Ventures, Dali-Hook Partners, JP Morgan Partners and Sierra Ventures. Valere Power had revenues of $88 million in 2006 and expects revenues up to $130 million in 2007, Eltek said. Valere's first-quarter revenues grew 44% year-over-year to $26.2 million. Valere chief executive and founder Andrew Marsh will become CEO of the new company, while the current head of Eltek Energy, Knut Aven, will become vice president for international telecom sales.

NANTOU, TAIWAN – Universal Scientific Industrial Co., a top 10 EMS company, today announced March consolidated net revenues of NT$5.33 billion, up 24% sequentially and 3% year-over-year. On a non-consolidated basis, monthly net revenues were NT $3.4 billion, up 31% sequentially, but down 9% year-over-year.

HERTFORDSHIRE, UK – Desco Industries, Inc., a manufacturer of ESD control products in Chino, CA, has acquired 100% of the shares of Vermason Ltd. Vermason manufacturers and markets ESD control products and equipment for protection of sensitive electronic devices and assemblies. Vermason will continue to operate in the same location.

VANCOUVER – Nam Tai Electronics chief executive Warren Lee has resigned, effective May 31, to return to Hong Kong investment company Yu Ming Investments as managing director. Nam Tai chairman and founder M. K. Koo will become interim chief executive.

Lee spent several years at Yu Ming before coming to Nam Tai.

EL SEGUNDO, CA – Telecom OEMS are expected to spend nearly $41 billion on equipment this year, the highest annual level since 2002, says iSuppli. Spending will be up 1.6% from 2006, after rising 10.7% in 2006 and 8.3% in 2005. iSuppli estimates $9 billion will be spent on IPTV-related communications equipment in 2007. Last year, OEMs spent primarily on access equipment. In 2007, iSuppli expects carriers to continue access-equipment spending at 2006 levels, while significantly increasing investments in their core networks. Global IPTV subscribers will soar to 105.8 million in 2011, rising at a 98% CAGR from 3.4 million in 2006, iSuppli predicts. Telecom OEMs’ IPTV budgets will have to grow to account for 20% of their total capital spending by 2011, says the firm. The only region exhibiting spending declines is Japan, where fiber-to-the-home (FTTH) deployment has slowed. However, Japanese spending should recover during the next few years.

EL SEGUNDO, CA – HP and Dell remain the world’s largest computer makers, but Acer and Lenovo are gaining, according to research firm iSuppli. Acer’s sequential mobile PC shipments rose 45.6% to 3.4 million units in the fourth quarter, said iSuppli. That beat HP, which shipped 5 million units, good for 32.8% growth. Industry-wide, mobile PC shipments rose to 23.6 million units in the quarter, up 15.7% sequentially, iSuppli said. For the year, global shipments increased 28.4% to 79.6 million units. iSuppli predicts worldwide mobile PC shipments will rise 23.5% to 98.3 million units this year. Acer and Lenovo accounted for combined desktop and notebook shipments in 2006 of 29.8 million units, or 12.5%, up from 10.8% (23.6 million units) in 2005. Through 2011, mobile PCs are expected to post a CAGR of more than 16%, compared with less than 4% for desktops, according to analyst firm IDC. If that pans out, mobile PCs would account for more than half of all client PCs worldwide in 2011. During the quarter, Dell posted the weakest performance of the top mobile PC makers, as shipments fell 1.5% to 3.52 million units, iSuppli said. Acer's share of the global mobile PC market rose three points to 14.3%, topping fourth-place Toshiba, which reported 2.45 million units shipped. Lenovo remained in the number 5 slot, up 9.1% sequentially to 1.9 million units.