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News

Wellesley, MA -- The value of the worldwide conformal coatings market hit $800 million in 2005, according to a new report from BCC Research. It is projected to reach $1.6 billion by 2010, an average annual growth rate of 15.2%. Key markets include semiconductors/electronics, medical devices, aerospace and automotive.

Electronics use dominated the conformal coatings market in 2005 and will continue to do so through 2010, holding 46% of the market share and growing at an AAGR of 13.6%, BCC predicts. IC barriers will drive the semiconductor and electronics sectors. Conformal coatings also find frequent use in new device packing systems and high frequency wireless consumer electronics.

Conformal coatings are used in a range of electronics applications to provide a variety of distinctive performance characteristics to components and devices.

ALAMEDA, CA -- There is a continuing disconnect between what OEMs want and what they say they are receiving from the contract manufacturers that build their products. That's according to a new study by research firm Technology Forecasters Inc.

Based on interviews with approximately 130 managers at more than 100 OEMs, the top priority is a need for their contract manufacturers to reduce the total cost of ownership.

SAN FRANCISCO – North American CIOs predicted IT budgets would grow 6.9% over the next 12 months, down from 8.6% in March, according to a June poll by Deutsche Bank and CIO magazine. Spending projections were up in most categories but were down for data networking, storage systems and e-business applications.

TEMPE, AZ -- Economic activity in the manufacturing sector grew in June for the 37th consecutive month, while the overall economy grew for the 56th consecutive month, according to the monthly ISM survey of manufacturing executives.

The PMI indicates that the manufacturing economy grew in June for the 37th consecutive month as it registered 53.8%, a decrease of 0.6 percentage point when compared to May's reading of 54.4%. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.

The report was issued today by the Institute for Supply Management.

A PMI over 42%, over a period of time, generally indicates an expansion of the overall economy. The June PMI indicates that both the overall economy and the manufacturing sector are growing.

Year to date, the average PMI (55.4%) corresponds to a 4.6% increase in real GDP. The annualized June rate of 53.8% corresponds to a 4% increase in real GDP, said chairman Norbert J. Ore.

"Manufacturing growth continued in June, and although the rate of growth slowed slightly, renewed strength in June's new orders index provides encouragement for the third quarter. The sector is benefiting from the weaker dollar and business investment. While energy and raw material prices are still a concern, our members indicate that they are coping with the challenges, and generally see their businesses in a continuing growth mode."

The industries reporting growth in June included Industrial and Commercial Equipment and Computers, and Electronic Components and Equipment.

SAN JOSE – Worldwide sales of semiconductors grew 9.4% in May, the SIA reported today. Sales rose 0.7% sequentially, reaching $19.7 billion, on continued demands for new cellphones and other consumer electronics.

“Worldwide sales of semiconductors in May continued to reflect generally favorable worldwide economic conditions,” said SIA president George Scalise. “As consumer products drive an increasing proportion of microchip sales, the growth of the semiconductor industry more closely reflects overall economic growth."

MIDDLETOWN, PA -- Phoenix Contact officials from Germany and the U.S. marked 25 years of U.S. operations by breaking ground for a $12 million expansion project at U.S. headquarters in Middletown.

The company is building a new 45,000 sq. ft. distribution center and expanding its manufacturing facility from 28,000 to 90,000 sq. ft.
The distribution center is slated for completion in 2007, and the manufacturing expansion is expected to be finished by 2008.

“It was an ambitious and visionary decision of my brother Gerd Eisert, the architect of the Phoenix Contact business activities abroad, to enter the North American continent 25 years ago,” said CEO Klaus Eisert. “He was convinced that this highly developed nation would be a future market for Phoenix Contact. At that time, we were competing with a small range of European DIN-rail terminal blocks on the one hand and PCB terminal blocks on the other hand. This turned out to be a success story!

“The market chances with the product range completed by surge voltage protection, Interface modules and automation technology have not changed today. We will do our utmost to provide for more marketability and thus for more customer satisfaction.”

Over 120 employees have been hired during the past year and a half, and the company plans to add 250 more by 2010.

Last year the company became a Trans-National Corporation, and the Middletown site, along with headquarters in Germany and China, became one of three Regional Business Units (RBUs). The Americas RBU is responsible for R&D and engineering of new products for all of the Americas subsidiaries.

Clinton, NY -- Indium Corp.’s vice president of technology, Dr. Ning-Cheng Lee, has been appointed to the IEEE Components, Packaging and Manufacturing Technology (CPMT) Society Board of Governors.

Dr. Lee was named SMTA Member of Distinction in 2002, received the Soldertec Global Lead-Free Solder Award in 2003 and recently received the 2006 CPMT Exceptional Technical Achievement Award. He has also served as an SMTA board member, liaison to the Taiwan SMTA chapter, coordinator and chair of the 2005 Nepcon Shanghai technical program, and is author of two books and over 100 technical papers.

He has experience in the development of solders, fluxes, high-temperature polymers, encapsulates for microelectronics, underfills and adhesives. His current research interests cover advanced materials for interconnects, and packaging for electronics and optoelectronics applications, with emphasis on high performance and low-cost ownership.

RENTON, WA – Microscan is offering a free downloadable series of educational tutorials on Data Matrix symbol verification. Designed for any manufacturer who marks parts with Data Matrix, the series covers the major industry verification standards involved in determining symbol quality. They also provide information on quality parameters and how they affect the symbol grading process.

“Open source manufacturers are increasingly required to supply traceable parts and components using Data Matrix symbols,” said Matt Allen, product manager. “In any bar code application, reliable traceability begins with marking the highest quality symbol possible for that application. General education on the parameters that define a high quality symbol will solve most application challenges before they occur. The verification educational series will provide manufacturers with the knowledge and the tools they need to be successful from the start.”

Located at microscan.com/elearning, the tutorials are available in a series of downloadable multi-media presentations, or on CD-ROM by request.

ST. LOUIS -- LaBarge Inc. has been awarded a $10.7 million contract to continue to provide Northrop Grumman with electromechanical subsystems and modules for a state-of-the-art automated mail sorting system. The award continues LaBarge's production of the assemblies through May 2007.

LaBarge-built equipment is part of the Automated Flats Sorting Machine-Automated Induction (AFSM-ai) system, a fleet of machines that together can sort 26 billion pieces of flat mail per year. LaBarge began manufacturing the subsystems and modules in July 2005, under a previous contract. The equipment enhances the system's in-feed units, which the company manufactured between 1999 and 2002.

LaBarge will perform the work at its Huntsville, AK, facility.

BUENOS AIRES -- Foxconn Electronics may site a manufacturing plant in Argentina in order to work more closely with its customers in Central and Lain America, according to a China language publication.

The Apple Daily further reported that Foxconn's wholly-owned handset subsidiary Foxconn International Holdings is considering a R&D center in Japan.

The Bromine Science and Environmental Forum today issued a statement that undercut an earlier missive from a European political group of the status of the chemical known as Deca-BDE.

According to the BSEF, a statement European Green made earlier this week regarding a nonbinding interpretation by the European Commission's DG Environment on Deca-BDE's exemption from the RoHS Directive "is incorrect and ignores the fact that the interpretation is under review. "

El Segundo, CA — After a better-than-expected first quarter, iSuppli Corp. has upgraded its semiconductor forecast slightly for 2006, going to 7.9% from 7.4%. Worldwide semiconductor revenue will rise to $255.7 billion in 2006, up from $237 billion in 2005, iSuppli predicts.

“The rise in the 2006 semiconductor revenue outlook comes despite a slowdown in the markets for electronic equipment,” said Gary Grandbois, principal analyst. “Worldwide electronic equipment revenue growth will decline to 6.8% in 2006, from 8.2% in 2005.

“However, electronic equipment demand remains very strong, and continues to be driven by the healthy PC, mobile- phone and consumer-electronics markets. Furthermore, improving conditions in the semiconductor industry, bolstered by rising average selling prices and lengthening lead times, are propelling chip growth to a higher level than that experienced by the end-equipment markets.”

The company predicts that semiconductor market growth will peak in 2007 and then bottom out in 2009.

The major products behind the market’s growth in 2006 are analog and memory ICs. Analog ICs are experiencing a strong resurgence as prices are pushed up by suppliers to pass on increases in material costs. A healthy mobile-phone market, expected to post 14% unit growth this year, also is important to the growth of analog ICs.

Memory IC growth is led by the continuing strength of flash, an area that is expected to expand 27%. Flash memory growth, combined with an 8% rise in DRAM revenue, will generate total memory IC growth of nearly 15% for the year.

However, higher-than-expected growth seen in the first quarter will be followed by some sluggishness in the market in the second half. Second-half growth of 5% is less than normal seasonal expectations. Orders appear to be weakening and inventories are rising.