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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.

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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.


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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, FLJabil 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. 

LEXINGTON, KY – EMS provider SMC today announced plans to add 18,000 sq. ft. to their current 55,000 sq. ft. facility in Lexington. The added capacity will include 16,000 sq. ft. of manufacturing space and 2,000 sq. ft. of office space. In 2005, SMC completed an expansion of 18,000 sq. ft. of manufacturing space at the same location.

ATLANTA - Technology Forecasters Inc. and Circuits Assembly will sponsor a Webinar, Emerging Markets for Electronic Manufacturers: A Closer Look at India and Vietnam, on April 12.   Read more ...
PORTLAND, ORIntel Corp. invites suppliers to participate in a technology interchange in which the semiconductor company will share its vision and reveal its requirements for the supply chain. The event – Where Are We Going? Where Do We Need to Be? – will be held May 23 at the Holiday Inn Portland Airport.
 
Intel general manager of systems manufacturing technology development Martin Rausch will keynote the event, speaking on The Inevitable Transition to HDI.
 
Other topics to be discussed include underlying issues that must be overcome as the industry makes advances in package scaling and associated board density, and what needs to happen to create pull for HDI PCBs from the OEM and ODM communities.
 
Nine industry suppliers will outline the supply chain's abilities and present gap analyses in the areas of lamination, cost-effective microvias, metallization/etching, embedded passives, board-level underfill solutions, component size and spacing reductions, assembly equipment, rework and alternative alloys.
 
For more information, contact Susan Filz, SusanFilz@ipc.org.
 
Registration form:
http://www.ipc.org/3.0_Industry/3.5_Councils_Associations/3.5.0_IPC/3.5.0.1_Suppliers/intel-0507/intel0507-REG.pdf 
TAIPEI -- Chi Mei Optoelectronics, Taiwan's second largest LCD maker, and Hon Hai announced plans to form a TV component joint venture

A Chi Mei spokeswoman said each company will contribute $14 million toward the new JV.

Hon Hai is the parent company of Foxconn, the world's largest EMS/ODM company.
ALBUQUERQUE, NM – Delta Group Electronics has purchased the assets of Sanford, FL-based electronics manufacturing services supplier Singletec Inc. No financial terms were disclosed.


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SURREY, UK – Semiconductor growth will slow to 1% for the year, consulting firm BPA Consulting predicted today. The firm said the beginning of 2008 will mark the start of the next upswing, which will continue into early 2009.

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