EL SEGUNDO, CA – Sales of broadband equipment are expanding at a robust pace, with factory revenue set to hit $15.1 billion worldwide by 2011, a CAGR of 6.2%, according to iSuppli Corp.
Broadband equipment sales were $11.2 billion in 2006, as users are opting for faster access to the Web. Household broadband is expected to exceed 50% in the U.S. and Japan for the first time this year, and will do so in Europe in 2008, iSuppli predicts. Global broadband subscribers will grow to 622.7 million by 2011, more than double the 270.4 million in 2006. “ADSL remained the leading broadband technology around the world in 2006, with 72% of the subscribers, while cable modems ended 2006 with 22%,” said Steve Rago, iSuppli principal analyst. “The ADSL market is headed for a major inflection point … This has happened in Japan already, as many service providers have migrated to fiber-to-the-home (FTTH) technology, which offers a 15-times increase in bandwidth compared to ADSL.”
FRANKLIN, MA – On May 17, Speedline Technologies will present a free one-hour Webcast on wave soldering process optimization. The Webcast starts at 11 am Eastern, and will emphasize process control and repeatability. Conveyance, fluxing, preheating and the wave solder module will be covered. Process-related topics will include product design, process definition, flux selection and application, solder wave forms, process instrumentation and control. Also to be discussed: tools and techniques for creating and maintaining engineering control and repeatability. For more information and to register, go to www.speedlinetech.com/seminars.
RICHARDSON, TX – TXP Corp. reported fourth-quarter rose to $3.1 million, up from $897,000 year-over-year. The EMS provider’s net loss rose to $1.8 million compared to net loss of $573,000 last year. The operating loss narrowed to $232,000, from $502,000. For the year, total revenue was $8.2 million, compared with $9.4 million for 2005. Revenue for 2005 included $5.2 million related to a one-time project with a single customer. The operating loss rose to $1.3 million, from $170,000 in 2005. The net loss was $4.6 million, versus a loss of $595,000. On March 30, TXP completed a private placement with Cornell Capital Partners worth about $5 million gross. The proceeds will be used to accelerate the company's ONT business strategy.
HERTFORDSHIRE, UK – Although 75% of respondents build products for markets outside the RoHS Directive scope, just 25% still use SnPb solder, according to a recent poll. And while most firms have opted for SAC alloys in soldering, no clear preference has emerged for board or IC finishes. The responses include companies exporting product to countries not covered by the RoHS Directive. The survey was conducted by Elfnet between November and February, and results compared with previous studies conducted in 2004 and 2005. SAC alloy remains the predominant choice in reflow soldering, at around 70%. SAC use has risen to 59% from 18% for wave soldering, and to 75% from 54% for hand soldering. About 12 to 13% of PWB and component finishes were SnPb, respondents said. Interestingly, companies have not standardized on a single replacement. Indeed, the number of finishes used has risen, to 10 in 2006 from seven in 2004. The report also includes limited data on regional variations with the U.S. and Japan, as well as equipment purchases and upgrades. About 80% of respondents reported ongoing implementation problems, some 15 to 18 months after the Directive went into effect. The report can be downloaded for free at www.europeanleadfree.net/pooled/articles/BF_DOCART/view.asp?Q=BF_DOCART_285702
SAN JOSE, CA – Sanmina-SCI Corp. today cut its quarterly revenue forecast and said earnings would be worse than expected because of weak demand for communications and high-end computers. The EMS firm lowered it estimate for revenue for the March quarter to about $2.6 billion, from its previous guidance of $2.65 billion to $2.75 billion. Non-GAAP earnings would also be below guidance, Sanmina said. Chief executive Jure Sola called the weakness short-term, saying business should improve in the second half. Sanmina said inventories are expected to fall least $90 million in its second quarter, and cash and equivalents would rise least $100 million.
SHENZHEN, CHINA – China's two leading telecom equipment providers, Huawei TechnologiesZTE Corp., are planning to build new manufacturing and R&D bases to speed up domestic and global expansion.
Huawei will spend a reported $517 million on a base in Dongguan. The company will build the base in phases, the first of which will be ready early next year. When fully operational, the cluster of factories will account for several billion dollars worth of Huawei's revenue, according to local media.
Huawei is also building a similar base in Langfang to be finished in July. It is also expected to generate billions in revenue.
ZTE is building a national R&D and manufacturing park in Shenzhen to expand its presence in cellphones. The park will cover 440,000 sq. meters and employ 15,000 workers.
BRUSSELS – The European Commission is requesting comments on the RoHS Directive in preparation for a revision most likely to be presented in 2008.
The EC will review measures provided for in the Directive, taking into account scientific evidence, according to an official announcement. The deadline for comments is May 22.
LAKE FOREST, CA -- EMS firm Probe Manufacturing
Inc. reported net profits of $425,134 on record revenues of $9.3 million for fiscal 2006. Sales were up 46% and the company reversed a net loss of $425,134 from 2005.
ITASCA, IL – Kester became the latest solder vendor to announce a surcharge on silver- and tin-containing solder paste products. The price increase will take effect 30 days from customer notification. As has been noted, metal costs have been increasing steadily for the past year and show no signs of retreating during the balance of 2007. As a result, solder vendors are passing along the higher costs to their customers. Kester is the third major supplier to announce a surcharge in recent weeks; the others were Cookson and Indium. The surcharges on Kester’s solder paste products are based on the difference between current metal costs and those from January 2006. The surcharge will be eliminated when tin and silver prices return to January 2006 levels, Kester said.
LOUISVILLE -- Just days after reiterating plans to lay off up to 1,500 workers, Solectron Corp. opened a 500,000 sq. ft. services center here and said it would hire up to 700 workers in the next 12 months.
The facility will perform parts fulfillment and repair for consumer electronics like cellphones.
LOHJA, FINLAND -- Elcoteq's chief executive today confirmed earlier reports the EMS firm would close its Lohja manufacturing plant and lay off a total of 242 employees by August.
The company said 215 workers would be affected by the Lohja plant closing. Another 27 would be laid off as part of changes to its NPI organization.