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ATLANTA – Strong end market growth and stabilizing average selling prices will drive semiconductor industry revenue to $316 billion in 2008, an increase of nearly 18% from projected 2007 sales, according to Objective Analysis. The company projects chip revenue growth of 6.3% in 2007, based in large part on improved ASPs. Foundry wafer demand will grow faster than capacity later this year, especially for 65nm sizes and below, increasing foundry utilization rates and ASPs, the analyst said. The increase, coupled with greater demand in the communications and gaming end-markets, will drive higher ASPs for logic and programmable devices, the firm said. A slowing in memory capacity additions reportedly will stabilize memory ASPs, especially those of NAND flash. Nearly all of 2007's expected price declines will have occurred in the early months of the year. The Objective Analysis forecast is bullish compared with others recently issued. Last week, Semico Research lowered its semiconductor forecast for the second time in recent weeks, saying that the IC market will grow 1.8% this year.

NEWARK, NY – IEC Electronics Corp., a New York-based EMS firm, reports that it has received two orders from one of its military and defense customers with a combined value of more than $8.5 million. The program could be worth up to $17 million, based on end-market demand. Deliveries will be completed by December 2008.

ST. LOUIS – LaBarge Inc. has received a $1 million contract from BAE Systems to produce electronics assemblies for the M88A2 Hercules improved recovery vehicle. Production at LaBarge's Huntsville, AK, facility is expected to begin in October and continue through September 2008. Hercules is used by the U.S. Army and Marines to recover damaged 70-ton combat vehicles.

SUNNYVALE, CA – PCB maker Sierra Proto Express has acquired PC Boards Inc., a board fabricator based in Chanute, KS. In a press release, Sierra said PC Boards would be renamed Sierra Midwest and through future acquisitions expects to double the plant’s size within a couple of years. “PC Boards has everything we need to actualize our future growth plans,” said Sierra president Ken Bahl. “They represent a perfect complement to what we do in Sunnyvale. Combined with PC Boards’ offshore alliances, this will allow us to provide our customers with a complete PCB solution.” Sierra expects sales to top $40 million in 2007.

SAN JOSE – Fourth quarter electronic design automation revenue was $1.5 billion, up 19% year-over-year. For the year, revenue totaled a record $5.3 billion, up 15% from 2005. During the quarter, PCB and MCM layout revenue rose 41% to $123 million. EDA and SIP product and maintenance revenue (excluding services) rose 20% year-over-year to a record $1.4 billion. Computer-aided engineering, the largest tool category, was up 17% to $634 million. CAE revenue was up 14% to $2.2 billion, and SIP revenue reached $274 million, up 31%. Services revenue was up 12% to $77 million. Reporting companies employed 25,390 professionals in the quarter, 10% more than 2005. For 2006, SIP revenue increased 21% to $989 million. PCB and MCM Layout revenue totaled $391 million, up 14%. Services revenue totaled $308 million, up 9%. North America, with 53% global share, purchased $788 million of EDA and SIP products and services in the fourth quarter, a 39% increase year-over-year. Western European sales rose 6% to $287 million, while Japan’s revenue dropped 10% to $230 million. Rest-of-world growth increased 19% to $188 million. For 2006, North American revenue was $2.6 billion, up 22% over 2005. Western Europe rose 12% to $977 million, Japan 3% to $1.1 billion and ROW 19% to $657 million.

TORONTO – Adeptron Technologies Corp. announced an agreement to acquire San Jose-based EMS provider Pacific Circuit Assembly for $2.25 million. The acquisition is expected to close within 45 days. The deal gives Adeptron its first facility in the U.S. Adeptron also runs three plants in Canada. PCA is expected to provide full turnkey manufacturing solutions as result of the deal. PCA had 2006 sales of approximately $3.2 million. Adeptron expects to finance the majority of the proposed acquisition using internal finances and the remainder through shares offered to PCA principals.