Circuits Assembly Online Magazine - White Papers

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Sanmina-SCI Corp. (San Jose, CA), a global electronics manufacturing services (EMS) company, has entered into an agreement to acquire Pentex-Schweizer Circuits Ltd., a provider of printed circuit board fabrication. The acquisition includes operations in Wuxi, China and Singapore.

Under the agreement, Pentex-Schweizer shareholders will be entitled to elect to receive $0.2006 per share. The total transaction value, including consideration for shares and options, is approximately $78.8 million.

The transaction is subject to several conditions, including approval by Pentex-Schweizer shareholders and court approval of the transaction under Singapore law, and is expected to close in Sanmina-SCI's fiscal 2004 fourth quarter or in its first quarter of fiscal 2005.

In addition, Sanmina-SCI and Pentex-Schweizer Circuits Ltd. have entered into a transition manufacturing agreement under which Pentex-Schweizer will provide PCB fabrication services to Sanmina-SCI during the period prior to closing and under which the companies will undertake transition manufacturing activities.

The operations in Wuxi, China and Singapore comprise 470,000 sq. ft. of manufacturing space, with additional expansion capabilities in China of 450,000 sq. ft. These two operations complement Sanmina-SCI's PCB facility in Malaysia.

Jure Sola, chairman and chief executive officer of Sanmina-SCI, said, "For quite some time, we have been carefully evaluating a number of expansion opportunities in China.

Pentex-Schweizer Circuits Ltd., an efficient, well-run operation with a group of talented employees, will provide us with a solid foundation to support our customers' requirements in this region. We expect to capitalize on the company's ability to manufacture high quality boards by leveraging our vertical integration strategy.

www.sanmina-sci.com

Early recognition of errors is becoming increasingly important when inspecting assemblies. In addition to proven 2-D evaluation for offset, completeness and smearing, Viscom (Norcross, GA) now presents 3-D paste inspection as an auxiliary option for the familiar S3054QS QuickScan Inspection System. The 3-D option can be used particularly for critical components such as ball grid arrays (BGAs) and flip chips.

The inspection system is distinguished by it short programming times and high-speed error recognition for flexible production. The simple programming allows set-up operations for different products to be accomplished within a short time.

Beginning immediately, 3-D inspection is available for checking paste printing. For this application, Viscom implemented a light section method using a dual-line laser illumination to allow image recording. With the aid of this new, modular 3-D height sensor, a height resolution of 10mm is possible.

In addition to the error characteristics of missing paste, smearing and short circuits, the height of the past print, the volume and the topography can be measured and evaluated.

The 3-D option fits in the company's existing automatic optical instpection environment and is compatible with all known tools and auxiliary tools.

www.ViscomUSA.com

According to IPC (Northbrook, IL), the North American IMS/PCB Industry book-to-bill ratio for May 2004 remained steady at 1.11.

The ratio is calculated by averaging the index numbers for orders booked over the past three months and dividing by the average index numbers for sales billed during the same period. A ratio of more than 1.00 suggests that current demand is ahead of supply, which indicates probable near-term growth.

Shipments increased 41.3% from May 2003 and orders booked increased 62.4%. Compared to last year, shipments of printed circuit boards are up 36.3% year-to-date, with bookings up 50.3%.

The shipment index was up 5.5% sequentially to 138.7 and the booking index was 168.8, up 23.8%.

The indices are calculated by setting the base year (1992) equal to 100 and then multiplying the monthly growth rates of the actual shipments and bookings by the corresponding index number. A shipment index number of 117.0, for example, indicates that shipments are 17% higher than average monthly shipments in 1992.

Based on "same store" data -- a measure of those companies that reported last year and this year -- PCB shipments grew 43.8% in May over last year, and orders jumped 67% year-on-year.

www.ipc.org

To help independent distributors better identify and protect themselves against fraudulent and substandard parts, the Independent Distributors of Electronics Association (IDEA, Princeton Junction, NJ), a non-profit trade association that represents the independent market segment, recently announced the availability of its Electronic Components Inspection Manual.

The manual, available to IDEA members only, establishes general requirements for the receiving and inspection of electronic components by brokers, suppliers or independent testing laboratories.

IDEA created the manual with the following objectives in mind:

To obtain sufficient information through inspection activities at vendor and licensee/applicant facilities to assure part authenticity.
To ensure that vendors are complying with the applicable industry requirements.
To inform industry/vendors of instances involving substandard, suspected counterfeit or fraudulently marketed vendor products and to gather and provide timely information to system users.
To assure that counterfeit and fraudulently marketed products are traced to their source and that system users are informed and alerted of possible suspected parts.
To inform private and federal agencies of appropriate matters involving substandard products.
To assure that system users' programs and their subsidiaries, as applicable, have an effective system for reporting counterfeit and fraudulently marketed products.
To provide technical assistance to system users for identifying counterfeit and fraudulently marketed products.

www.IdofEA.org

According to a story in the San Diego Union-Tribune, business is looking up for maquiladora factories in Mexico. After surviving the loss of nearly 300,000 jobs nationwide, Mexico is reaping the benefits of U.S. economic recovery, with new and expanding manufacturing companies now seeking workers to fill 18,000 job openings.

The maquiladora program allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent re-export. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports).

According to the article, employers are increasing worker benefits and wages to fill the new demand for factory workers—with some companies even going door-to-door to find applicants.

Demand for engineers and technicians is especially high since many Mexican factories survived the economic downturn by turning to more sophisticated processes to manufacture advanced products in the electronics, automotive and medical industries.

The more sophisticated manufacturing activities mean higher salaries for qualified workers—with wages for engineers now reaching $20,000-$40,000 a year. Companies are struggling to find college graduates and other workers that they can educate for the newly available highly skilled positions.

While the electronics, automotive, aerospace and medical parts factories that seek the workers are unable to predict whether or how long the economic rebound will last, the companies understand the importance of recruiting and training workers now in the high-tech skills that are increasingly required.

The Ultra 2800 DispensLink system from EFD (East Providence, RI) uses positive displacement technology to produce consistent, volumetric shots of epoxies, adhesives and many other assembly fluids—regardless of changes in fluid volume, viscosity or temperature.

The mechanical benchtop system operates on electricity and does not require the use of compressed air. It is ideal for applications that require precise metering of assembly fluids with changing viscosities, or where specific flow rates are necessary.

The patented technology uses a stepper motor and hydraulic cable to advance and retract a piston inside the fluid reservoir in precise increments. This results in consistent volumetric fluid deposits, without the need to adjust settings to compensate for changes in fluid characteristics.

EFD Inc. is a wholly owned subsidiary of Nordson Corp., a producer of precision dispensing equipment. Nordson and EFD systems apply adhesives, sealants and other assembly fluids to a range of consumer and industrial products during manufacturing operations.

www.efd-inc.com