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News
December 31, 1969 |Estimated reading time: 6 minutes
China Sets Prices, Manufacturing Trends
Los Altos, Calif. - Cell phone users in China account for only 23% of the total population with 310 million subscribers out of 1.3 billion. Recruiting new subscribers, however, will not be an easy task as those who can afford the phones already have them. In Japan, there are 80 million registered cell phone users out of a total population of 126 million. New handset sales, however, are not as strong with nearly 95% of all sales going toward handset replacements. Similar, but less extreme trends are being seen in North America and Europe, claims Henderson Venture’s October Forecast Summary.
These figures come on the heels of Henderson’s September 2004 forecast, which shows mixed third-quarter results from the electronics industry. Overall, with each predictor by Henderson, and especially in the September and October forecasts, the Chinese influence on global electronics continues to grow. Global economic slowdown, combined with poor financial results and stories of excess inventory, are making companies cautious. Asian-based companies, especially those in Taiwan, saw excessive inventory growth as the back-to-school PC sales were weaker than anticipated. Additionally, reports from China and Japan suggest that cell phone production has diminished due to unsold inventories. As a result, Intel is said to have reduced its third-quarter revenue forecast.
But what can manufacturers do to bring in new users and reduce over-inventory? Added features and functions on cell phones have minimal draw for new customers. However, low cost is a key component in new and future sales, especially for countries with lower income levels. Market growth in these lower income areas would help to maintain double-digit growth through 2005 despite weaker global economic foundations, the study shows.
But what is driving this focus on price? It may not necessarily be the consumers. Chinese-based companies that produce over 200 million seem to be setting this precedence. These companies, which may have been local subcontractors years before, have become complete Original Design Manufacturers (ODMs). Because these companies hire engineers with two years of experience for low salaries, global suppliers have been forced to expand their Chinese presence.
Global equipment production should expand by 10.1% this year, and slow to a 7.7% pace next year, shows the September report. A gain of 4.7% is expected for 2006 as the PC and cell phone replacement cycles slow further. During this slowdown, China should maintain double-digit growth rates, but much less than seen previously.
PCB Book-to-bill ratioSeptember Book-to-Bill Continues to Rise
Northbrook, Ill. - The IPC IMS/PCB book-to-bill ratio for September rose to 1.08, calculated by dividing the value of orders booked by the value of sales billed. Orders booked increased 18.1% in this time. Compared to last year, PCB shipments are up 33.5% year-to-date, while PCB bookings are up 35.2%.
September’s overall book-to-bill level rose to 1.08, while orders booked increased 18.1% in this time.
APE Appoints VP of Sales and Marketing
Key Largo, Fla. - APE has appointed Jim Dornan as Vice President of Sales and Marketing to support its domestic and overseas businesses. He also will assist in marketing the company’s resources to provide technical information and procedures. Dornan brings with him his experience in production and rework logistics and will be based in the Florida facility.
SMT’s Website Search Capabilities Enhanced
Troy, N.Y. - GlobalSpec, a search engine and online resource for engineers and technical buyers, has expanded its partnership with PennWell Corporation. The companies first teamed in January 2004 to include SpecSearch, a search technology in the online version of PennWell’s Laser Focus World, which focuses on optoelectronic technologies, applications and markets. The expanded relationship brings GlobalSpec’s parametric search capabilities to users of SMT’s Website, as well as the Websites for Advanced Packaging and Connector Specifier magazines.
Visitors to SMT’s Website will have direct access to SpecSearch, allowing them to use detailed specifications to search for products and services of more than 75 million parts, representing 1.2 million product families. Searchable categories include areas such as PCBs, fabrication services, electronic manufacturing services (EMS), automated test equipment (ATE), semiconductors, cleanrooms, imaging stations, connectors, cable assemblies and interconnect products.
“This partnership represents a perfect union of technical search capabilities coupled with powerful brands,” said John Bubello, Group Publisher for SMT, Advanced Packaging and Connector Specifier. “The power of GlobalSpec’s SpecSearch will provide the 95,000+ subscribers of the magazine group a powerful searching tool for specifying products and services in their respective markets.”
CD-ROMs Assist in Lead-free Move
Hertfordshire, England - A series of interactive CD-ROMs have been developed by Soldertec Global to help engineers move ahead to introduce lead-free hand soldering, wavesoldering and reflow processes. The CDs begin with a review of the importance of lead-free soldering. It then provides a step-by-step guide to soldering materials, the soldering process, lead-free inspection and defects that can be found in manufacture. Process stages and defects are illustrated with video clips and photographs. The CD-ROMs also feature a defect guide browser that gives examples of defects, instead of defect categories, to help compare process problems with the disk content. Users can click on a photograph to receive an explanation of possible defect causes. The CD-ROMs can be purchased from www.leadfreesoldering.com.
Lightspeed Marks First-year Anniversary
METHUEN, Mass. - Lightspeed Manufacturing has marked its first anniversary in the business and claims it has noticed both an upswing in activity and an increase in orders over the recent months. Founded by electronics manufacturing industry veteran and BGA specialist Rich Breault, Lightspeed believes the market is getting back on its feet. “There’s no question that business is improving, and this is due to a variety of factors,” claims Breault. “We’re getting work in smaller, more technically complex lots, work of domestic origins that is not economically feasible to outsource to the Far East,” he adds. Lightspeed also attributes some of its success during the industry downturn to the addition of more services and capabilities.
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Applications Laboratory Shows Laser Possibilities
Cheshire, England - Sherwood Technology announces the launch of its Applications Laboratory to demonstrate the possibilities of laser making. This allows current and future licensees and end users to test the final results of Sherwood’s color change technologies.
Two new products from Sherwood respond to the energy emitted from a low-power CO2 laser. Applications for this technology can be demonstrated and tested within the company’s facility. The Applications Laboratory also is said to give customers a first-hand look at the future of laser imaging.
Using the Applications Laboratory facilities, products can be marked using a wide range of CO2 lasers, including the Domino S100, Market SmartLase, Videojet S10 and Alltec CS10. Several demonstrations are available showing these lasers in potential applications such as date coding, bar coding, virtual labeling and graphics printing. Users can also test material responsiveness to a range of energy sources at different wavelengths.
Audit Service Extends Lab Knowledge
Binghamton, NY - Universal Instruments’ SMT Laboratory is available globally through the company’s Process Audit service. The Laboratory optimizes processes for surface mount and advanced packaging assembly. The tool is designed to help OEMs and outsource businesses increase productivity.
Prior to running the audit, users set specific targets they hope to reach. The audit can then be used to deliver results. The Lab features a set structure, which is closely followed in the audit for accuracy and consistency. The results begin with a review of the process, existing yield and reliability issues and are available for further review. If requested, recommendations regarding the audit are implemented.
Reasons for a process audit include increasing end-of-line yield, cutting labor and materials costs due to scrap and rework, enhancing repeatability and quality or reducing assembly time and process steps. These reductions result in a savings in utility, capital equipment, maintenance and work-in-progress costs.
The audit process service uses the company’s investment in advanced analysis equipment and knowledge gained through international research programs. Laboratory facilities feature production simulation; rework and test platforms; analytical instruments, such as scanning microscopes and X-ray and optical instruments; and equipment for accurate characterization of processes and materials.