News
In a statement, Fluke said it is consolidating its base of EMS providers. Plexus may in the future take over new product introduction, including design, prototyping and test.
"The latest numbers reflect a slower growth rate for worldwide sales of semiconductors as previously projected," said SIA president George Scalise. "A combination of factors - consumer uncertainty, inventory accumulation in key sectors, and seasonal issues in some markets - resulted in modest sequential sales growth from June.
Nevertheless, year-on-year sales were up 37.9% as demand for ICs continues to rage worldwide. The data are based on a three-month moving average of sales activity by 66 reporting semiconductor firms.
SIA predicted a strong finish to 2004. SIA guided for third-quarter sequential growth of 4 to 6%. "The industry remains on track for year-on-year growth of approximately 28% and record sales of $214 billion," Scalise said, citing the strong U.S. economy for creating favorable conditions for sales of PCs, autos, and consumer electronics.
"If these end-markets follow normal seasonal patterns, we expect to see solid growth rates for the semiconductor industry through the remainder of the year," Scalise said.
Inventory levels remain considerably lower than comparable levels in summer 2000. "There are also indications that consumer concerns over issues such as oil prices, the U.S. elections, and geopolitical developments are affecting household spending patterns.
Sales growth rates slowed sequentially in all regions except Europe. According to VLSI Research, capacity utilization is forecasted to decline slightly from 95% in the second quarter to 93% in the third.
TEMPE, AZ, Sept. 2 - The rate of growth in the manufacturing sector slowed in August but new orders and production remained strong. Manufacturing grew for the 15th consecutive month, said the Institute for Supply Management, based on its monthly poll of the supply chain.
The PMI, a leading measure of economic activity, was 59%, down 3 points and breaking a string of nine straight months above the 60% level. Still, the PMI was above the benchmark 50% level for the 15h straight month. New orders fell 3.5 points and production dropped 6.6 points.
Respondents focused on energy costs, price inflation in basic materials and slowing sales growth. "While the near-term outlook remains positive, both the inventories and customers' inventories indexes show signs of inventory building," ISM chairman Norbert Ore said. "Such a build may be justified if it is to meet additional sales demand, and if new orders and production remain strong."
Prices manufacturers pay were higher, driven by customer demand and energy costs. Customer inventories remain "too low," ISM said, although the rate of decline decelerated significantly during August. Backlogs rose, as did new export orders and imports.
Electronic Components and Equipment, and Industrial and Commercial Equipment and Computers were among the sectors reporting growth.
April May June July August
PMI 62.4 62.8 61.1 62.0 59.0
New orders 65.0 62.8 60.0 64.7 61.2
Production 67.0 64.8 63.2 66.1 59.5
Inventories 44.8 49.3 51.1 49.9 51.7
Customer inventories 40.5 37.0 39.0 37.5 45.5
Backlogs 66.5 63.0 58.5 58.0 55.0
Source: Institute for Supply Management, September 2004Next month in Hong Kong is electronicaAsia, an exhibition for components, assemblies, production and display technology. The Oct. 13-16 show will be held concurrently with the Hong Kong Electronics Fair.
electronicaAsia is the largest electronics manufacturing show is Asia. According to show producers Messe Munchen, last year's electronicaAsia had more than 28,000 trade visitors, up 75% from 2002, and 552 exhibitors.
Automotive electronics will take top billing at electronica 2004 in November in Munich. Automotive accounts for 17% of the overall semiconductor market in Europe, 30% in Germany, thanks to demand for engine-control units, electronic-dashboard instrument clusters, remote keyless-entry systems and airbags.
electronica 2004 will be held Nov. 9-12.
In a press statement NEMI said the new guidelines include input from suppliers that wasn't in the May version.
Joe Smetana, principle engineer, advanced technology for Alcatel and group chairman, said, "[T]here are a number of options for reducing the risk of tin whiskers, and we recognized the need for supplier feedback on the practicality of implementing the various approaches. Our goal was to address a complex issue in a practical manner with a justifiable approach while limiting the testing requirements in an effort to save time and money but still reducing the risk of tin whisker failures."
Among the updates:
- Changed significantly the "qualification by similarity" matrix, dramatically reducing the number of tests (and associated cost) required by an individual supplier.
- Eliminated the annual requalification requirement, replacing it with a simpler, supplier-defined, whisker monitoring requirement.
- Eliminated requirements for control samples that produce whiskers.
- Provided options in the specification if tin-lead reference samples are not used or available for baseline whisker length comparisons.
- Provided guidelines for optical inspection qualification as a possible alternative to SEM (scanning electron microscopy).
- Eliminated preconditioning requirements for components with nickel underplating, which cuts sample sizes for components using nickel as a mitigation practice and also reduces the test time required for these components.
- Allowed an option for bias testing (when required) to be conducted in sockets.
"As long as the fundamentals and various contributing factors to tin whisker growth are not fully understood, acceptance of lead-free tin finishes always carries some risk, particularly when relating testing to field life," said Smetana. "However, we believe that the combination of mitigation practices, testing and plating process control reduces the risk associated with tin whiskers."
The revised requirements have been submitted to IPC and JEDEC to consider for standardization.
Not everyone agrees that new efforts are needed, however. Several solutions were devised in Japan as much as 20 years ago; see Jan Vardaman's column in Circuits Assembly in September for details.
The Tin Whisker User Group is comprised of 11 large manufacturers of electronics assemblies that agree that pure tin finishes (and other high-tin content lead-free alloy finishes) present a risk of tin whisker-related failures in electronics, particularly those demanding high reliability.
In a Sept. 29 ceremony at SMTA International, in Rosemont, IL, Yi will receive The Founder's Award, SMTA's highest form of recognition.
Yi has been a member of SMTA since 1997 and was a directors from 2000 to 2003. He is a former chair of the Chapter Leadership Committee and an active member of the Technical, Awards, Membership, and Certification committees.
In a press release, the SMTA said Yi's greatest accomplishment may be his role in international development. Yi has been the SMTA's liaison for activities in China, including a chapter in Hong Kong, an office in Shenzhen, and four technical conferences.
Other award recipients:
- Jeffrey Forster of Universal Instruments, a 14-year member of SMTA and a founder and officer of the Oregon Chapter, will receive the Member of Distinction Award.
- Randy Cherry of Telllabs will receive the Excellence in Leadership Award. Cherry, a member since 1987, has been heavily involved in the association's Chicago chapter, and served on the SMTA Membership Committee.
- Kester Corp. will receive the SMTA+ Corporate Partnership Award. A corporate member since 1985, Kester has institutionally supported SMTA's educational and other programs.
- Abby Tsoi will receive the International Leadership Award, a new award. He has been president of the Hong Kong Chapter since 2001, and gainedsupport from the City University of Hong Kong in order to provide a low-cost office and free venue for chapter activities.
Effective Sept. 20, SMTEK president and CEO Edward Smith will depart for a senior executive position with Avnet Electronics Marketing.
In a press statement, Smith said, "The financial performance reported over the last several quarters shows how SMTEK's initiatives are paying off. I have decided for personal reasons to relocate to the area of the country that I call home."
SMTEK's board has named senior vice president and chief financial officer Kirk Waldron as interim president.
Smith will continue as a director of SMTEK, the company said.
SMTEK chairman James Burgess said the company's financial guidance remains unchanged.
The position reports to president and COO James McClintock.
Dr. Lessner, who has been with Kemet for eight years, was director of technical marketing services. He has a bachelor's in chemical engineering from Cooper Union and a Ph.D. in chemical engineering with a focus in electrochemical engineering from the University of California Berkeley.
NORTHBROOK, IL, Aug. 27 -- Orders for rigid boards upticked in July and demand for flex circuits continues to be strong, according to the latest 90-day moving average of North American manufacturers.
For all board types, shipments rose 31.1% and bookings were up 42.2% vs. a year ago, said IPC, which administers the monthly poll. The figures may include some sales of products built offshore and brokered by the surveyed companies.
The July book-to-bill was 0.99 for rigid, up 0.04 points sequentially. The B2B for flex circuits remained even at 1.57.
The book-to-bill for all board types rose to 1.10, up 0.04 points sequentially.
The ratio is calculated by averaging the number of orders booked over the past three months and dividing by the average sales billed during the same period. A ratio of 1.06 means that for every $100 in shipments, $110 worth of PCBs were booked. An increasing ratio is generally considered a sign of a market poised to rise.
Shipments are up 34.8% year-to-date, bookings 43%. Combined July shipments fell 18.1% sequentially, while bookings inched up 1.9%.
July rigid shipments were up 17.6% and bookings 20.5% over last year. Year-to-date, rigid shipments are up 25.5% and bookings are up 23.1%. Among those surveyed, rigid shipments fell 21.2% sequentially and bookings dropped 7.5%.
July flex shipments were up 76.1% while bookings reversed last month's decline, rising 71.1% vs. last year. Year-to-date, flex shipments are up 77.8% and bookings 133.2%. Sequentially, flex shipments fell 3.7% and bookings were up 56.1%.
Flex sales, which include some value-added services, make up about 17% of total PCB sales in the IPC poll.
The data come from a sample of North American rigid and flexible PCB manufacturers.
The EMS provider assembles thin-film diode LCD modules for Seiko.
In a statement, Isomu Koike, president of Seiko Epson's Philippine plant, said, "This is the first time we have embarked on a close cooperation with another company and I believe that this partnership with IMI will be lasting and fruitful."
Based on server revenues, IBM remained the top vendor, with sales up 10.8% to $3.5 billion, good for a market share of 30.7%. Dell's revenue rose 20.1% to $1.1 billion, making it fastest growing OEM among top-tier vendors.
H-P led the way in shipments, with 463,489 units. Sun Microsystems showed the highest growth rate, with shipments up 38.4%, to 90,487 units.
Following a scheduled mid-quarter conference call, Flextronics CFO Bob Dykes said, "Growth continues very strongly and our business is looking very solid."
Flextronics reiterated July guidance for Q2 earnings of 15 to 18 cents per share before items.
In recent weeks several analysts had expresssed concern over rising inventories, particularly among makers of telecom and communications gear. On the call, chief executive Michael Marks pooh-poohed the negative sentiment, saying "concerns about inventories were way overblown in our industry."
Later, to a news service, Dykes said, "The September and December quarters are strong ones for us and therefore inventories will rise along with that."
Press Releases
- NEDME 2025 Draws Strong Northwest Crowd, Builds on Tradition of Regional Collaboration
- Cofactr Democratizes their Complete Procure-to-Ship Automation Service at a Pivotal Moment for US, Unlocking Support for Agile Hardware Manufacturers in America—with No Upfront Costs
- Semi-Kinetics Adds 2nd Pemtron X-Ray Inspection and Component Counting Capabilities as Part of California Expansion
- The Training Connection Continues to Grow with Addition of Veteran IPC Trainer Bill Graver