Circuits Assembly Online Magazine - News

News

According to estimates by leading players and ITIS research, local Taiwanese PCB makers will suffer a slight margin drop from last year's 13.6% amid tight supply of materials, such as polyimide and glass yarn, and weak demand.

Constrained by weak demand and less working days in February, industry players hinted flexible PCB demand bottomed out in Feb and orders started picking up from March. Industry players expect April orders to grow 20-40% from March orders, DigiTimes said.

IRVING, TX — EMS provider Elcoteq Network Corp. has opened a new plant in Bangalore, India, and will manufacture telecommunications equipment there. The facility will employ approx. 1,000 people and manufacture products, including mobile phones and communications network equipment, for global customers operating in India and the Asia-Pacific.

"With a population of over one billion people, mobile-phone penetration of a mere 3% and a telecom services market growing at over 100% annually, India represents one of the most exciting regions for handset OEMs and EMS providers," said president and CEO Jouni Hartikainen. "Given the huge opportunity, cost advantages, availability of highly skilled manpower, infrastructure and software development facilities, proximity of key suppliers and the government's agenda for telecommunications and electronics manufacturing, we find this an extremely attractive location."

"This inauguration is more than the launch of a manufacturing facility. It is about revolutionizing the EMS sector in India and tapping the vast opportunities it offers. The telecommunications sector in India has surpassed all forecasts," added chairman Antii Piippo.

ARLINGTON, VA - After bouncing back in February from the annual January dip, electronic component orders took a slight downturn in March, according to the monthly order index compiled by the Electronic Components, Assemblies & Materials Association (ECA).

"Many manufacturers believed that this year's first quarter would be a repeat of the strong growth in Q1 2004," said Bob Willis, ECA president. "Depending on what happens with end markets, the fluctuations might continue into the second quarter."

In addition to general industry caution, Willis sites factors such as the rising price of wholesale oil, trade imbalance and the federal deficit having a dampening effect on the market.

The ECA represents manufacturers and producers of passive and active electronic components, component arrays and assemblies, and materials and support services. It is a sector of the Electronic Industries Alliance (EIA) that reportedly represents 80% of the U.S. electronics industry.

April 8 -- PBR Seminars will launch "Differential Traces and Impedance," a two-hour technical Webinar, on April 27 from 10 a.m. - 12 p.m. PDT (1-3 p.m. EDT). Doug Brooks, a signal integrity expert who regularly speaks at the PCB Design Conferences, is the featured speaker.

According to Brooks, differential circuits and differential signaling are becoming more common on today's PCBs. Differential circuits have several advantages over their single-ended counterparts, including a better signal/noise ratio, more precise signal timing and immunity from external noise sources. Brooks will explain the advantages and disadvantages of differential circuits compared to single-ended circuits, and cover the sometimes confusing issue of common-mode noise as it applies to each type of circuit.

For more information or to register, visit www.pbrseminars.com.The Webcast will also be available after the seminar, and additional Webinars will be announced soon.

PBR Seminars is a joint venture between UP Media Group and PCB007.

Eindhoven, The Netherlands, April 8 -- Assembléon, has appointed APS France Equipments to represent its SMT placement line in France. APS is a member of the Propelec S.A. group, which represents Assembléon in Spain and Portugal.

Assembléon's director region Europe, Ton Cornelissen, said, "Propelec has a very positive attitude to the SMT market and to its customers ... We've shared a very satisfying relationship with the Propelec group in Spain, and have every confidence in the company's capability to represent us in France in cooperation with Assembléon France SAS."

ROUND ROCK, TX - Dell Computer said PC unit growth would slow to 10% for the first quarter, another sign of slowing IT demand for PCs. Demand in the U.S. has improved slightly, however, Dell told analysts gathered at its annual Analysts Day meeting this week.

Dell said its overall business is a little softer. Investment bank Deutsche Bank forecasts Dell's revenues to grow 16% in fiscal 2006.

OYSTER BAY, NY - Most of the public attention given to RFID has focused on the retail supply chain, especially Wal-Mart's mandate to its top 100 suppliers. But the U.S. Department of Defense is also mandating its use this year - to all of its 43,000-plus suppliers. Add to that the needs of the aerospace industry, particularly the two giant aircraft makers, Boeing and Airbus, and the shape of a massive vertical RFID market emerges.

Boeing and Airbus - which use many of the same components - are working with the US Federal Aviation Administration to formalize UHF RFID certification for systems to track aircraft parts, says Erik Michielsen, ABI Research director of RFID and ubiquitous networks. The hoped-for improvement in ROI is of vital importance to an industry that has been hard-hit by recent economic conditions. Safer planes and fewer procurement overlaps are added incentives.

"The airline industry is obviously profit-based," Michielsen says. "They want efficient manufacturing, supply chain and asset tracking systems to create economical business models. With the DoD, RFID is not about business models: it's about improving military operations efficiency in acquiring materiel from suppliers and making sure it gets to units in the field. These are massive, aggressive and very complex initiatives that will be major factors driving RFID's adoption."

The first beneficiaries are the RFID suppliers who have been granted "Blanket Purchase Agreement" awards, certifying that their systems meet the DoD's requirements, ABI says. The first five companies in this favored position are UHF EPC Class 1 transponder suppliers Alien Technologies, Avery Dennison, CDO Technologies, Lowry Computer Products and Intermec. Other BPA awards are expected soon.

REDMOND, WA, April 7 -- Data I/O, a provider of manual and automated programming systems, has expanded its strategic alliance with Intel Corp. to provide flash memory programming solutions.

According to the company, wireless handset manufacturing companies are Data I/O's largest customer group and consume significant volumes of high-density flash memory devices. Multi-national customers require speedy, concurrent support in many different geographies. Intel offers such support with its flash memory Programmer Evaluation Labs (PEL) located in Folsom, CA, and Cavite, the Philippines. These labs both use the Data I/O FlashPAK programming system.

"Intel Flash Memory devices are used by virtually all our major customers, and close cooperation with Intel strengthens our programming solutions," said Bruce Rodgers, VP of sales and marketing in Asia/Americas.

Peter Larsen, Intel programmer evaluation lab manager added: "Our [combined] efforts include rapid algorithm development for Intel Flash Memory components, optimized manufacturing programming performance on Data I/O platforms and quickly addressing the needs of our customers."

LOS ALTOS, CA - China's appetite for energy coupled with decisions by leading oil producers not to raise output will inflate energy costs and slow global GDP growth, according to the latest economic report by Henderson Ventures.

The research firm forecasts GDP growth to slow to 3% in 2006, from 4% in 2004, and then rebound to 3.6% in 2007.

Electronics equipment markets are expected to follow suit, Henderson said.

"This year, consumer outlays will be stoked by demand for mobile telephones, flat-screen TVs, low-end PCs and iPods. Increasing per-vehicle content will help automotive electronics manufacturers to achieve respectable growth," Henderson said.

Businesses will spike IT equipment buys, and military electronics will see "muscular gains," largely in the U.S., Henderson said.

Global electronics equipment production is forecast to grow 7.1% percent this year, down from 10.3% in 2004. 2006 and 2007 growth will be 5.6% and 7.7%, respectively, Henderson forecasts.

VANCOUVER, CANADA - Nam Tai Electronics reported a record $156 million in sales for the first quarter of 2005, an increase of 64% over 2004. The growth exceeded the EMS provider's upper sales guidance of $155 million.

"Nam Tai's first quarter sales typically are seasonally the lowest due to a long holiday in China with the shortest working days and after the peak season of Christmas sales," said Nam Tai's CEO Joseph Li.

""The substantial growth in sales was mainly attributable to our new expanded production capacity resulting from construction which has completed ahead of the schedule. Based on continuous sales orders from existing customers and positive feedback from potential customers, we are optimistic and confident that our growth momentum will continue into the second quarter and onward in 2005."

Nam Tai Electronics manufactures electronics components and subassemblies, and finished products, including cellular phones and PDAs.

BANNOCKBURN, IL - The 90-day moving average shipments of all types of circuit boards rose 0.9% year-on-year in February, according to the latest poll of U.S. PCB fabricators. Bookings fell 34.1%, however, due to seasonality.

A large percentage of the production includes boards built offshore and distributed by North American vendors. According to IPC, which takes the poll, 33% of the shipments reported were produced offshore, down two points from January.

The domestic book-to-bill ratio was flat at 1.08, the third month in a row the key indicator was above 1.0. The ratio is based on data collected by IPC from rigid and flex producers and is calculated by dividing three months worth of orders by sales. A ratio over 1.0 is considered an indicator of rising demand.

Separately, the ratios were 1.04 for rigid PCBs, up 0.04 points, and 1.23 for flexible circuits, down 0.13 points.

Rigid board shipments, estimated by IPC to make up 75% of all domestic PCBs, were down 3.2% in February vs. a year ago. Bookings were down 9.8% for the month. Flex sales grew 21.2%, but bookings fell 105%.

Year-to-date flex bookings are down 26.2% and shipments are up 33.8%. Rigid shipments are down 1.8% and bookings are off 6%. Shipments of all boards are up 4.3% and bookings are down 10.1%.

Sequentially, combined shipments were up 5.1% over January, while bookings were 28.3% lower percent. Rigid shipments were up 11.2% and bookings climbed 4.5% sequentially. Flex shipments were down 13.9% and bookings were down 104.7%.

Domestic production accounted for 74% of rigid and 37% of flex circuit shipments in January, IPC said.

Flex sales include some value-added services in addition to the bare flex circuits.

In a statement, IPC cautioned that month-to-month comparisons should be made with caution as they may reflect cyclical effects.

CHICAGO -- Connector prices are expected to fall over the next six months, according to a poll of purchasers and engineers.

No data on the number of persons polled or the margin of error was released. The monthly poll is conducted by ConnectorSupplier.com.

According to the poll, 37.6% of respondents feel prices will stay the same over the next six months, while 33.3% of respondents feel prices will decline slightly. A quarter of respondents - 25.8% - believe prices will increase slightly. About 31% of respondents felt prices declined slightly over the past six months, while 20.4% felt they rose slightly.

Lead times are expected to stay more or less the same over the next six months, the respondents say. Over 68% said they expect no change in lead time. About 20% said they expect lead times to increase slightly. The average lead time as of February was 4.8 weeks, according to those polled.

ConnectorSupplier.com is run by Bishop & Associates, a consulting firm for the connector industry.