HANOVER, NH – A large customer of ACT Electronics has filed suit, alleging the struggling EMS firm is demanding $250,000 to release product and other gear the customer claims to have paid for. 

In a lawsuit filed last week in U.S. District Court, Hypertherm Inc. says ACT is attempting to “extort” the contested monies. The dispute is costing Hypertherm a reported $47,000 per day and has forced the company to cease production on one of its lines.

ACT is facing financial issues, according to the lawsuit and other parties reached by Circuits Assembly. In recent weeks, ACT has announced mass layoffs at its Hudson, MA, and Corinth, MI, facilities.

The original December 2007 deal established payables were due 30 days after the product's receipt. Hypertherm reportedly purchased $60,000 to $70,000 worth of product a week from ACT, according to the New Hampshire Business Review.

Last month, ACT reportedly claimed “financial difficulties" and demanded Hypertherm pay in advance for its product builds. The suit alleges Hypertherm prepaid for $44,000 worth of product, yet ACT demanded an additional $250,000 for future builds before it would deliver the boards.

In response, Hypertherm demanded ACT release the paid-for product, plus stencils, test fixtures and tooling worth a reported $100,000. ACT thus far has refused, according to the suit. Hyperthem seeks an injunction.

 

SANTA ANA, CA – The Americas lags the world in HDI production, according to a new presentation delivered by Matt Holzmann last week.

Speaking at the IPC HDI Technology Conference in Dallas, Holzmann, president of Christopher Associates, said high density interconnect substrates production was $202 million in the Americas in 2006, far behind Southeast Asia ($3.6 billion), Japan ($1.5 billion), and Europe ($352 million). While the compound average growth rate of HDI in the Americas will be 7% through 2011, it will remain a distant fourth regionally, Holzmann said, citing data from Prismark Partners.

HDI is used in a wide range of end-products, ranging from cellphones to PC peripherals, medical gear and even aerospace. Cellphones make up nearly 40% of HDI board use, followed by IC package substrates at roughly 35%. Those two segments will remain the largest consumers by far through 2011.

Of the 3,600 laser drills installed worldwide, only 150 are in North America, Holzmann said. That reluctance to invest is one reason more than 80% of current demand filled from overseas sources, Holzmann said.

The presentation is available at www.christopherweb.com/pdf/MTHPresentation_HDI_10_2008.pdf.