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News

HERNDON, VA – iNEMI released a rare earth metals white paper.

"Rare Earth Metals: Current Status and Future Outlook” discusses the sources of rare earth metal ores and processed materials. Potential solutions to prevent future supply constraints are suggested.

"Demand for rare earth metals has increased significantly in the past decade," said Bill Bader, CEO of iNEMI. "REMs can be found in every electronic device produced today. But the electronic industry is not the only sector requiring an increased supply of REMs. These materials can be found in every hybrid automobile and most batteries, as well as every fiber-optic amplifier, LED, fluorescent light, and even in wind turbines. As demand continues to grow, shortages are a real risk."

Bader says iNEMI developed its REM white paper to inform the electronics industry about the REM situation worldwide and to urge the industry to take steps to become better informed and ready to react appropriately to future challenges. He notes some affected industries are developing policies and alternative technologies to reduce their dependence on REMs and/or mitigate risks to their supply chains, and that the electronics industry should consider taking a similar approach.

To view the white paper, visit http://thor.inemi.org/webdownload/projects/iNEMI_REM_Whitepaper.pdf.

KANATA, CANADA – Test and measurement equipment from OneChip Photonics will be sold at auction in early June.

Items up for auction include a Royce Model MP300 autoplacer die sorter; SEC Model 830 manual pick-and-place system; Finetech Lambda flip chip bonder; Averna life test system; Royce Model DE35-ST semiautomatic die handler; bar tester systems; Tektronix Model CSA8000 Scope; wafer probers; Agilent DCA-J 86100C; HP Model 8703A Lightwave component analyzer; Ando Model AQ6317C optical spectrum analyzer; two Agilent Model 86142B optical spectrum analyzers; two Agilent Model 86140B optical spectrum analyzers, and TestEquity 1007C temperature chambers

The online auction is being conducted by Baja Bid at www.BajaBid.com. Bidding will open at 4 AM EST on June 3 and will close at 11 AM EST on June 5.

MELBOURNE, FL – Electronics manufacturer MC Assembly is moving to a new facility here.

GRAND RAPIDS, MI — DASI Solutions has signed a deal to develop 3D printable applications related to production requirements of EMS firm Firstronic's automotive customers. Financial terms of the exclusive, three-year agreement were not disclosed. electronics manufacturing services (EMS) applications. DASI is a supplier of 3D printing equipment, software and services. DASI will work with Firstronic and its customers’ product development teams, and Firstronic engineers will have full access to DASI's technical support labs and 3D printers. "3D printing ... is becoming a disruptive technology with the potential to provide competitive advantage to companies who explore ways it can be used to cut lead-time or eliminate design constraints," said Firstronic CEO John Sammut. "Our alliance with DASI Solutions gives us access to their technical support labs, which have the widest range of 3D printing capability in Great Lakes Region. Our engineering team will be working with their additive manufacturing technology experts to develop applications which save our customers time and money." It is an exciting time to be involved in additive manufacturing technology because the range of materials and applications is rapidly expanding," said DASI co-owner David Darbyshire. "We see the alliance with Firstronic’s engineering team as not only an opportunity to educate them on our technology, but also an opportunity for our experts to learn more about their processes and ways additive technology can be used to improve them."

OOSTERHOUT, THE NETHERLANDS - Vitronics Soltec will move its global engineering and product management responsibilities to its European Business Unit, which the company says will better leverage the company's soldering knowledge and provide comprehensive products and support on a global scale.

The shift to Europe will permit the company to take full advantage of nearly a century of soldering expertise, Vitronics said. Engineering teams in the US and China will be maintained and will continue to help product development, the firm said.

The company, which released new selective and wave soldering lines this year, said it expects to debut two more products in 2015.

Vitronics Soltec’s Advanced Technology team is led by Gerjan Diepstraten. The global Engineering and Product Management team will be headed by Ton Colijn, a 25-year Vitronics Soltec veteran who has been responsible for many successful product introductions, including the recently introduced ZEVAv selective soldering machine.

BINH DUONG PROVINCE, VIETNAM -- A Fittec International EMS site here has been torched and looted, the company said. The extent of the damage remains under investigation and operations are temporarily suspended until further notice.

The events came as local Vietnamese are showing their anger over Chinese drilling in disputed waters.

The company owns the factory at the Vietnam Singapore Industrial Park in southern Vietnam, which manufactures printed circuit board, electronics components and related parts. The Vietnam factory had 16 SMT lines and a production placement capacity of 24.3 billion chips per year, representing approximately 24% of the company's total production capacity.

According to the company the site generated revenues for the six months ended Dec. 31 of HK$59.2 million ($7.64 million), about 11% of the company's overall sales for the period.

"Based on the company’s best available information, the Vietnam Factory was torched and looted by rioters. As at the date of this announcement, the company could not estimate the loss caused by the riot as anti-China protests and riots continue to be carried out in and around [the park]."

Hong Kong-based Fittec has six production sites, most of which are in China, and 2013 sales of 112.1 million ($144.6 million).

NEW YORK -- A leading semiconductor analyst says expected 2014 sales growth is 8.4% year-over-year, lower than last month's forecast of 11.9%. Mike Cowan is basing his updated estimate on March global semiconductor sales as reported by the WSTS, which came in at $331.335 billion. March's actual global semi sales, which were released last week, were in at $28.095 billion, much lower than Cowan's LRA Model projections of $31.116 billion. "This lower actual sales number for March (compared to its forecast) corresponds to the model’s monthly momentum indicator, MI, of -9.7%," Cowan said. The MI has gone negative following a five-month string of positive momentum indicators, signaling a potential turning point in the sales growth trend consistent with March’s drop in 2014’s sales growth forecast. Additionally, March 2014’s year-to-date cumulative sales growth came in at 11.4 percent when compared to last year’s equivalent YTD cumulative sales number of $70.449 billion. Finally, the model’s April 2014 actual global semi sales expectation is projected to come in at $24.857 billion which corresponds to a calculated three-month moving average, 3MMA, sales forecast estimate of $26.098 billion which is normally reported by the SIA as part of its monthly published Global Sales Report, GSR, press release The Cowan LRA Model’s forecast is calculated and updated each month, reflecting the latest, actual global semiconductor sales numbers released by the WSTS each month. For more information on the Cowan LRA Model, see this a SLIDE PRESENTATION HERE.

FRAMINGHAM, MA – Worldwide IT spending will increase by 4.1% in constant currency this year, IDC said, down from its previous forecast of 4.6%. The good news is the worst is likely over, and pentup demand will accelerate overall IT sales through the rest of the year, the research firm said. The market grew 4.5% last year. According to the new report, IT spending has been volatile since the beginning of the year, with macroeconomic wild cards including the crisis in Ukraine and the slowdown in China adding to the general sense of uncertainty which continues to impact business confidence and investment. Pent-up demand should, however, drive a more positive capital spending cycle in the second half, IDC said. In mature economies, organizations will take advantage of a more stable business climate to replace ageing infrastructure including servers, storage and network equipment. In some emerging markets, stabilization of the economy after the slowdown that began in mid-2013 could drive a period of catch-up spending, especially in China where IT spending has cooled significantly over the past 12 months. Aside from macroeconomic wild cards, the other weak spot in the IT market since the previous quarter has been slowing growth in mobile devices (smartphones and tablets), due partly to price erosion and a more mature installed base. IDC has lowered its forecast for total IT spending growth this year from 4.6% to 4.1% in constant currency, primarily as a result of downward revisions to mobile device forecasts. Based on average exchange rates from the first quarter 2014, this will translate into US dollar growth of just 3.4% as currency volatility continues to negatively impact US-based IT vendors. In 2013, the IT market increased by 4.5% in constant currency, but just 2.5% in US dollars. Excluding mobile phones, growth in 2014 will accelerate slightly from 2.9% to 3.1% (constant currency) due to the expected pickup in infrastructure investment and the related downstream effect on IT services revenues. “As smartphone growth continues to cool from the phenomenal expansion of the past few years, tablet shipments have performed weaker than expected over the past couple of quarters,” said Stephen Minton, vice president in IDC’s Global Technology & Industry Research Organization. “This volatility, coupled with the macroeconomic uncertainty in many emerging markets, is somewhat masking a more positive underlying foundation for enterprise IT spending, with firms continuing to invest in working off that pent-up demand to replace old servers, storage and network gear. Some of that spending is also driving IT services, despite the fact that an increasing number of businesses are moving more of their traditional IT budget to the cloud.” Around 10% of software spending will have moved to the cloud by the end of 2014, while infrastructure as a service will represent 15% of all spending on servers and storage. While this is creating significant disruption for IT vendors targeting traditional IT budgets, it is also driving equally significant short-term opportunities for those vendors that successfully capture mindshare for their Cloud-based solutions. Meanwhile, both Cloud and traditional spending will be driven by the underlying pent-up demand for server and storage capacity, driven in turn by the previous, explosive growth of mobile devices that are now generating an ever-increasing volume of data. The opportunity to extract value from this data is driving strong demand for analytics tools and Big Data solutions. Many organizations will choose a gradual approach for their journey to the Cloud, with security, reliability and regulatory factors in mind, implementing hybrid and private cloud solutions. As a result, both Cloud and traditional IT spending will benefit from these drivers in the next 2-3 years. Western Europe will post growth of 2% in constant currency terms as most countries continue to shake off the debt crisis and return to a more stable business climate. Similarly, business confidence is gradually improving in the US, after the sequester and government shutdown of last year. Server and storage spending will rebound to positive growth after last year’s slowdown, while IT services growth will accelerate to more than 2%. In Canada, IT spending growth will accelerate from 3.3% last year to 5% in 2014, due to stronger spending on PCs, servers and storage. Japan is a different story; the pent-up demand was largely worked off in 2013, when the government’s deflation-busting policies boosted business confidence and when IT buyers moved to take advantage of lower prices before new taxes came into effect at the beginning of 2014. As a result, IT spending in Japan increased by 3.4% last year, but will decline by 1% in 2014. “Over the past year, most of the surprises on the upside have come from mature markets,” said Stephen. “Japan had a strong year in 2013, and a similar pattern is expected this year in North America and Western Europe. We still expect that businesses will choose to fix the roof while the sun is shining in the second half of 2014, as part of a general infrastructure investment cycle.” Emerging markets are more volatile, with macroeconomic forecasts having been lowered since January. In Central & Eastern Europe, the crisis in Ukraine has added to the sense of business uncertainty, and IDC now expects IT spending in Russia to decline by almost 1% this year after a similar decline in 2013. The slowdown in Russia will inevitably continue to have an impact on other countries in the region, although the recovery in exports to Western Europe is a positive factor. Inflation remains problematic in many emerging markets, including Latin America, India, Indonesia and Turkey. China remains a wild card. On the one hand, there is significant pent-up demand for IT spending after the slowdown of 2013. On the other hand, some economists are now forecasting that GDP growth could dip below 7% in 2014 and 2015. A hard landing in the real estate sector could yet derail the expected short-term recovery in IT spending, if businesses choose to once again delay their capital spending upgrade and expansion plans. Assuming the economy remains relatively stable, however, the pent-up demand will drive IT spending growth back to 10% in 2014, before another likely slowdown in 2015. “China still has a lot of room for growth, and the slowdown in tech spending last year means that a period of catch-up is inevitable,” said Stephen. “As long as the economy remains fairly stable in the rest of 2014, the market should perform better than last year, although growth will likely cool again after that pent-up demand has been dealt with.”

TAIPEI – Hon Hai Precision Industry has instructed its Vietnam staff to take a three-day leave of absence starting Saturday, according to reports.

Vietnam is currently experiencing vandalism, factory closings, and deaths as a result of anti-China protests that originated with a dispute in the South China Sea, say reports.

Hon Hai is the parent company of contract manufacturer Foxconn.

LOGANSPORT, IN -- A Cal-Comp EMS plant here caught fire this week but damage was minimal. No one was hurt, and production has been restarted, according to reports.

The fire was sourced to bone pile material, reports indicated.

While damage was contained and minor, production was temporarily halted to allow smoke to clear and air quality to return to appropriate levels. A sprinkler system in the loading dock area was activated, leaving some water to be cleaned uo.

Cal-Comp acquired the site from Total Electronics in 2010.

AUSTIN, TX -- Flextronics is considering investing $15 million in its operations here and adding up to 300 workers as part of a state program that would refund up to $1.25 million to the EMS company.

The company currently employs a reported 2,500 workers at the 1,000,000 sq. ft. manufacturing site here, which builds Apple Mac Pros, among other devices.

Texas' Enterprise Zone Act, which is funded by the state's sales and use tax, issues tax rebates to private companies in exchange for investments in infrastructure and workers.

Flextronics said the jobs would include factory workers and would pay an average $30,000 per year. The firm would also retain some 200 management positions that pay an average $115,000 a year.

As a condition of the state program, Austin has to nominate Flextronics for the deal and also offer its own incentive.

The company currently employs a reported 2,500 workers at the 1,000,000 sq. ft. manufacturing site here, which builds Apple Mac Pros, among other devices.

Texas' Enterprise Zone Act, which is funded by the state's sales and use tax, issues tax rebates to private companies in exchange for investments in infrastructure and workers.

Flextronics said the jobs would include factory workers and would pay an average $30,000 per year. The firm would also retain some 200 management positions that pay an average $115,000 a year.

As a condition of the state program, Austin has to nominate Flextronics for the deal and also offer its own incentive.