HOUSTON, Dec. 15, 2004 — Microtek Inc. (microtek.co.jp/english/) has chosen BP Microsystems' (bpmicro.com) equipment for a new programming services facility in Isehara, Kanagawa, Japan.

The 130-employee company plans and designs parts that are then commissioned for manufacture in separate facilities. It prefers automated programming systems because of reduced bent leads during handling and better ESD isolation. Additionally, it offers visual inspection services and component marking services.

Microtek's new facility, the Atsugi Programming Center, uses programmers, vision inspection machines and marking machines. The company anticipates programming over six million devices this year.

Dykes will continue to advise Flextronics through March.

"I cannot begin to tell you how important Bob has been to the development of Flextronics as a leading company in the EMS industry, both as a director and as CFO," said Michael Marks, chief executive. "Bob served as my most trusted advisor during the rapid development of the company over the past seven years."

Smach has been Flextronics senior vice president of finance since its acquisition of the Dii Group in April 2000.

HP spends an estimated $43 billion each year --- the largest in the world -- on supply chain procurement. The company seeks ongoing supply chain cost reductions of the $1 billion to $1.3 billion annually through 2007, DB wrote, the bulk expected to come from lower procurement costs.

HP, which sources 88% of its' spend with its top 40 suppliers, has plans to shrink its supplier base even more. In doing so, the firm will retake control of various purchasing that the company had previously outsourced to EMS firms, DB wrote.

HP is demanding its EMS firms compete on their manufacturing capabilities, rather than procurement. "While HP implemented this process over a year ago to get better clarity into its costs (and eliminate the CMs' profit from material cost arbitrage), we believe HP is accelerating this move and continuing to pressure pricing at the EMS level," DB analyst Chris Whitmore wrote.

Furthermore, the company is pushing toward greater standardization across its hardware platform, reducing the number of parts it uses.

PARIS, Dec. 13 -- LG Electronics last week opened an R&D center here and will staff it with more than 100 researchers, part of its strategy to crack the top 3 of the handset industry market by 2006.

At the center, LG will work on multimedia features for its next-generation (4G) GSM and WCDMA phones. The company will also use the location to enhance its links with major European service providers like Vodafone, Hutchison, T-Mobile and Orange .

LG also has R&D centers in San Diego, Beijing, Bangalore and Moscow.

In a statement, James Kim, president for European Headquarters, said, "[T]he establishment of R&D center in Europe has created an environment in which we can efficiently respond to R&D issues in the region. We will position our research center as the R&D hub penetrating European mobile phone market by increasing the number of researchers by more than 100-plus people next year."