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AUSTINUse of system in package is expected to grow 20% compounded annually through 2009, driven by wireless products, especially cellphones.

In a new report, System-in-Package: The New Wave in 3D Packaging, TechSearch International explores the technology advances and market drivers that have produced a renaissance in multichip packaging solutions.

How are SiPs different from multichip packages of the past? According to TechSearch one application – wireless products – stands out as a high-volume driver that did not exist a dozen years ago, when many multichip packages were first introduced.

According to TechSearch, SiP is a functional system or subsystem assembled into a single package containing two or more dissimilar die, typically combined with other components such as passives, filters, antennas, and/or mechanical parts. The components are mounted together on a substrate to create a custom, integrated product.

A variety of SiPs are found in the RF, digital baseband, and transceiver sections of mobile phones. The reason: SiPs deliver increased functionality and performance in small form factor for mobile communication, resulting in significantly greater adoption rates than any previous MCM. Emerging applications for mobile phones include mini hard disks and camera modules. Planar and stacked configurations are in use and several companies, including Philips, STMicroelectronics and SyChip, have introduced integrated passive substrate solutions.

SiP solutions are increasingly found in a broad range of additional market segments, including consumer electronics such as digital cameras and camcorders, automotive, military/aerospace, medical, computer, and telecom. SiP is forecast to hit a unit growth rate of almost 20% CAGR between 2004 and 2009, TechSearch says.

JACKSON, MI -- Sparton has passed on buying Celestica's PCB assembly plant in Iowa, saying that anticipated DoD work earmarked for the site has failed to materialize. The EMS provider said last spring it would try to buy the 70,000-sq. ft. Mount Pleasant plant and save the 340 jobs.


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TAIPEI -- Abit, a publicly traded manufacturer of PC hardware, is putting its main production facilities in China  on the market and will outsource its manufacturing, according to news reports.

According to local press reports, Abit will use the proceeds to retire debt.
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WETZLAR, GERMANY -- Golden Gate Capital has acquired the semiconductor equipment division of Leica Microsystems AG. Terms were not disclosed.

David Dominik, managing director of Golden Gate, said in a statement. “SED is well-positioned for growth as a market leader in mask metrology, optical defect review, and direct-write E-beam lithography.” In 2004, the division's revenues were approximately $120 million.

Leica Microsystems SED will continue to be led by the current management team, with manufacturing operations in Germany and the U.K. The company will be called Leica Microsystems SED for a short transition period until a new name has been established.

The acquisition represents the second semiconductor investment for Golden Gate in 2005. In April, the investor group acquired TDK Semiconductor, now named Teridian Semiconductor.

Leica Microsystems makes quality control and defect analysis solutions and E-beam lithography systems for the semiconductor industry.

Leica Microsystems AG is a subsidiary of Danaher Corp.
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BANNOCKBURN, IL – IPC today issued a statement supporting the U.S. EPA’s actions to amend the Toxics Release Inventory program but noting concerns over its limited benefits to electronics manufacturers.

In a statement, IPC environmental policy director Fern Abrams said, “IPC certainly appreciates EPA’s efforts, but we’re a bit disheartened that the EPA’s proposals will not provide the manufacturing sector with burden reductions of any significance."

Recent TRI Burden Reduction Initiatives announced by the EPA include a proposed rule that would increase the number of TRI reporters eligible to use the short TRI Form A.

Abrams said the move would have little benefit for most facilities. "While the EPA proposes allowing facilities reporting lead and other persistent, bioaccumulative and toxic (PBT) chemicals to use the shorter Form A, it only applies if they are reporting zero releases," Abrams said. "When combined with the agency’s failure to address enforcement concerns for facilities using Form A, it is likely that very few facilities will utilize this burden reduction option.”

EPA also plans to notify Congress of its intentions to change the TRI Reporting requirement from annual reporting to alternate-year reporting, thus providing some relief to a select number of TRI reporters, IPC said.

Abrams said such a move would be "win-win for all involved" as it would cut the reporting burden in half across the board.
SAN JOSE -- Flextronics will expand its EMS operations in Mexico through the development of a new facility in Ciudad Juarez. The plant is scheduled to be operational in the first half of 2006.

"Flextronics selected Ciudad Juarez based on its strategic access to North American markets," said chief operating officer Mike McNamara. "The supply base in this area is well established, allowing for logistical cost savings and increased efficiencies."

The facility will perform product build-to-order, product completion and pack-out, mechanical services and logistics such as repair and distribution.

Mike McNamara, Flextronics' chief operating officer. "Ciudad Juarez's proximity to the United States offers flexible logistics options including next-day delivery advantages, shorter transit times and lower transportations costs.

Other Flextronics operations in Mexico are in Guadalajara and Aguascalientes.

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