News
ATLANTA -- Companies that currently import into the EU are implicitly
declaring RoHS compliance. This was the message conveyed by Steve Andrews, head
of the eco-design and product registration unit with the UK Department of Trade
and Industry. European countries are taking self-declarations on good faith;
there is no visible mandate, according to Andrews.
Andrews and others spoke on RoHS issues last week in a special Webcast on due diligence and environmental compliance. The presentation focused on laws in place in the EU and pending in China.
TAIPEI -- Hon Hai Precision Industry Co., the parent company of Foxconn, will report a 38% hike in profits for its recently completed quarter, according to a polling of financial analysts.
Hon Hai is expected to post a net profit of T$15.28 billion ($460 million) for the September quarter, up 19.7% sequentially. Results are due early next week.
Hon Hai is expected to post a net profit of T$15.28 billion ($460 million) for the September quarter, up 19.7% sequentially. Results are due early next week.
TORONTO -- Celestica Inc. reported third-quarter revenue climbed 20% to $2.4 billion but its net loss rose 119% to $42.1 million versus a year ago. Consumer sales were strong, and other segments were solid, the firm said.
For the quarter ended Sept. 30, the EMS company took restructuring charges of $82 million.
For the quarter ended Sept. 30, the EMS company took restructuring charges of $82 million.
Sales were slightly ahead of company guidance.
SINGAPORE -- The role of Taiwanese handset makers is becoming increasingly significant in the global handset industry. Cooperation with handset original design manufacturers has become an integral part of the handset strategies of some big OEMs such as Motorola and Sony Ericsson, especially in the low-end handset segment.
"Taiwan's ODMs gain cost advantages through setting up plants in mainland China, and their leading role in supplying handset components is helping them further improve their cost structure and complete their supply chain," says ABI Research industry analyst Junmei He.
The research firm forecasts handset shipments from Taiwan will reach 281 million in 2008, 79% of which will be ODM handsets. These shipments will account for 26% of the world's handset shipments.
Currently, Motorola and Sony Ericsson are most active in cooperating with Taiwanese ODMs; Nokia and Samsung are still slow to move in this direction. ODM strategies are also popular in Japan, but shipments are still relatively low. There is also much less cooperation between Chinese mainland handset vendors and Taiwanese ODMs, primarily because of unstable demand and the low profit margins produced by intensive competition in the mainland Chinese market.
In the mainland market, Chinese vendors lost market share last year, but their profit margin today is improved compared to the fourth quarter of 2005. "The handset market structure in mainland China has changed during the past two years," says Junmei He. "The changes include the erosion of market share by illegally distributed handsets, the reforming of distribution channels by vendors on the mainland, and the further involvement of operators in the sales and supply chains."
As a result of these changes, the big vendors will garner greater market share, and the proportion of operator-customized handsets will increase quickly, reaching 77% of total handset shipments on the mainland in 2011.
"Taiwan's ODMs gain cost advantages through setting up plants in mainland China, and their leading role in supplying handset components is helping them further improve their cost structure and complete their supply chain," says ABI Research industry analyst Junmei He.
The research firm forecasts handset shipments from Taiwan will reach 281 million in 2008, 79% of which will be ODM handsets. These shipments will account for 26% of the world's handset shipments.
Currently, Motorola and Sony Ericsson are most active in cooperating with Taiwanese ODMs; Nokia and Samsung are still slow to move in this direction. ODM strategies are also popular in Japan, but shipments are still relatively low. There is also much less cooperation between Chinese mainland handset vendors and Taiwanese ODMs, primarily because of unstable demand and the low profit margins produced by intensive competition in the mainland Chinese market.
In the mainland market, Chinese vendors lost market share last year, but their profit margin today is improved compared to the fourth quarter of 2005. "The handset market structure in mainland China has changed during the past two years," says Junmei He. "The changes include the erosion of market share by illegally distributed handsets, the reforming of distribution channels by vendors on the mainland, and the further involvement of operators in the sales and supply chains."
As a result of these changes, the big vendors will garner greater market share, and the proportion of operator-customized handsets will increase quickly, reaching 77% of total handset shipments on the mainland in 2011.
EL SEGUNDO, CA — With product delays, competing standards and inventory shortages plaguing consumer electronics, there may not be one killer application this holiday season that emerges to capture the attention of shoppers during this market’s hottest time of the year, iSuppli Corp. believes.
Apple's Internet Television, which will enable consumers to view iTunes and other content on their TVs via a Wi-Fi link to their personal computers, was one of the heavy favorites to tackle the market with both arms. However, now its launch date has been pushed back to January. Normally, such a delay might provide a great opportunity for another company to steal the spotlight with a hit holiday product. However, competing standards and product shortages are making this much less likely.
These issues also are among the factors contributing to a slowdown this year in consumer electronics equipment overall. Factory equipment revenue will only rise 2.4% to $302.3 billion in 2006, compared to 11.6% and 13% growth in 2004 and 2005, respectively.
Many of this year’s wannabe hot products are designed to build on the very strong sales growth for digital TVs that support HD video. Chief among those products are next-generation HD-video DVD players, which should have been this year’s hit holiday product. Instead, the battle between the HD-DVD and Blu- ray standards for next-generation DVD is resulting in much slower growth. Many consumers are waiting for a winner or, more likely, the emergence of dual-standard players and/or disks in time for next year’s holiday season.
Although both sides will claim otherwise, neither standard has a true technological advantage. The HD-DVD camp, headed by Toshiba Corp., got a head start by entering the market in the late spring. However, those initial products have been criticized for slow performance and a lack of full 1080 progressive-scan HD video output. Toshiba now is readying second-generation products, including a model that delivers full 1080 progressive output. Meanwhile, the Blu-ray group, led by Sony, has encountered its own problems. Samsung Electronics launched its debut BD-P1000 player in June only to admit image quality problems in September.
Other Blu-ray makers have delayed launches, partly due to a shortage of blue laser diodes. Nichia Corp., the primary supplier and technology licensor of blue laser diodes for Blu-ray, has reported manufacturing yield problems. That issue has spilled over into a video game console market already entangled in the DVD standards battle; i.e., Sony’s PS3 includes a Blu-ray player while Microsoft is offering an add-on HD-DVD player for its Xbox 360. Sony has licensed Nichia’s blue laser diode technology to develop high volume production for the PS3. However, Sony also has reported yield problems and said it is about a month behind its production schedule. The result: A cut in 2006 PS3 global shipments to 2 million to 2.4 million units, a level that would seem to preclude “holiday hit” status.
On a more positive note, Sony has added High-Definition Multimedia Interface (HDMI) support to its base PS3 model and reduced Japan pricing in the wake of criticism.
The latter move may also be in response to new details about the Nintendo Wii, which will ship on the heels of the PS3 at a much lower price point of $249. In Japan, Sony likely views Nintendo as a much more serious threat than Microsoft. Nintendo has a strong history in Japan for both consoles and handheld players. Microsoft, however, has failed to gain significant market share with the Xbox and is also struggling with Xbox 360 sales.
Furthermore, the Wii has been receiving high levels of positive media attention since its show-stealing preview at this year’s E3 conference in May. With its innovative, unique controllers and low price point, the Wii may turn out to be the underdog hit of the video game market. Moreover, a relatively simple design without next-generation DVD support increases the chances that Nintendo can meet its 4 million unit shipment target for 2006.
Microsoft may be shifting its focus somewhat from the video game market to the MP3 player market, where it plans to launch its new Zune player in mid-November. The company may consider this timing a good opportunity since its main competitor, Apple, has yet to launch any significant new iPods so far this year. The second-generation nano adds spiffy new cases, but still does not support video. And the latest hard disk-based flagship iPod, which merely adds a brighter display and more storage, is a far cry from the much anticipated “true video” iPod featuring a larger, landscape-oriented display better suited for watching movies.
Still, Apple’s recent iPod launches did increase pressure on Microsoft by continuing to raise the basic value of storage per dollar. And Microsoft itself has created another serious challenge for the Zune by replacing PlaysForSure with a new proprietary Digital Rights Management (DRM) scheme. This change means that any content purchased through the Zune Marketplace will only work on a Zune player and not on PlaysForSure devices made by Microsoft customers like Creative Technology, SanDisk, Sony and many others. As such, Microsoft could further alienate customers already concerned that a key software supplier is now also a competitor for players. SanDisk already has announced a three-way partnership with RealNetworks and Best Buy to develop its own content-hardware ecosystem to rival those from Apple and Microsoft.
Apple's Internet Television, which will enable consumers to view iTunes and other content on their TVs via a Wi-Fi link to their personal computers, was one of the heavy favorites to tackle the market with both arms. However, now its launch date has been pushed back to January. Normally, such a delay might provide a great opportunity for another company to steal the spotlight with a hit holiday product. However, competing standards and product shortages are making this much less likely.
These issues also are among the factors contributing to a slowdown this year in consumer electronics equipment overall. Factory equipment revenue will only rise 2.4% to $302.3 billion in 2006, compared to 11.6% and 13% growth in 2004 and 2005, respectively.
Many of this year’s wannabe hot products are designed to build on the very strong sales growth for digital TVs that support HD video. Chief among those products are next-generation HD-video DVD players, which should have been this year’s hit holiday product. Instead, the battle between the HD-DVD and Blu- ray standards for next-generation DVD is resulting in much slower growth. Many consumers are waiting for a winner or, more likely, the emergence of dual-standard players and/or disks in time for next year’s holiday season.
Although both sides will claim otherwise, neither standard has a true technological advantage. The HD-DVD camp, headed by Toshiba Corp., got a head start by entering the market in the late spring. However, those initial products have been criticized for slow performance and a lack of full 1080 progressive-scan HD video output. Toshiba now is readying second-generation products, including a model that delivers full 1080 progressive output. Meanwhile, the Blu-ray group, led by Sony, has encountered its own problems. Samsung Electronics launched its debut BD-P1000 player in June only to admit image quality problems in September.
Other Blu-ray makers have delayed launches, partly due to a shortage of blue laser diodes. Nichia Corp., the primary supplier and technology licensor of blue laser diodes for Blu-ray, has reported manufacturing yield problems. That issue has spilled over into a video game console market already entangled in the DVD standards battle; i.e., Sony’s PS3 includes a Blu-ray player while Microsoft is offering an add-on HD-DVD player for its Xbox 360. Sony has licensed Nichia’s blue laser diode technology to develop high volume production for the PS3. However, Sony also has reported yield problems and said it is about a month behind its production schedule. The result: A cut in 2006 PS3 global shipments to 2 million to 2.4 million units, a level that would seem to preclude “holiday hit” status.
On a more positive note, Sony has added High-Definition Multimedia Interface (HDMI) support to its base PS3 model and reduced Japan pricing in the wake of criticism.
The latter move may also be in response to new details about the Nintendo Wii, which will ship on the heels of the PS3 at a much lower price point of $249. In Japan, Sony likely views Nintendo as a much more serious threat than Microsoft. Nintendo has a strong history in Japan for both consoles and handheld players. Microsoft, however, has failed to gain significant market share with the Xbox and is also struggling with Xbox 360 sales.
Furthermore, the Wii has been receiving high levels of positive media attention since its show-stealing preview at this year’s E3 conference in May. With its innovative, unique controllers and low price point, the Wii may turn out to be the underdog hit of the video game market. Moreover, a relatively simple design without next-generation DVD support increases the chances that Nintendo can meet its 4 million unit shipment target for 2006.
Microsoft may be shifting its focus somewhat from the video game market to the MP3 player market, where it plans to launch its new Zune player in mid-November. The company may consider this timing a good opportunity since its main competitor, Apple, has yet to launch any significant new iPods so far this year. The second-generation nano adds spiffy new cases, but still does not support video. And the latest hard disk-based flagship iPod, which merely adds a brighter display and more storage, is a far cry from the much anticipated “true video” iPod featuring a larger, landscape-oriented display better suited for watching movies.
Still, Apple’s recent iPod launches did increase pressure on Microsoft by continuing to raise the basic value of storage per dollar. And Microsoft itself has created another serious challenge for the Zune by replacing PlaysForSure with a new proprietary Digital Rights Management (DRM) scheme. This change means that any content purchased through the Zune Marketplace will only work on a Zune player and not on PlaysForSure devices made by Microsoft customers like Creative Technology, SanDisk, Sony and many others. As such, Microsoft could further alienate customers already concerned that a key software supplier is now also a competitor for players. SanDisk already has announced a three-way partnership with RealNetworks and Best Buy to develop its own content-hardware ecosystem to rival those from Apple and Microsoft.
-SAN JOSE – NanoNexus CEO Dr. William Bottoms will keynote MEPTEC's IC Packaging and Test Roadmaps symposium next month.
The MEPTEC (the MicroElectronics Packaging and Test Engineering Council) event will be held Nov. 16, at the in San Jose.
Dr. Bottoms is chairman and CEO of NanoNexus, a provider of advanced contactor and interconnect products. He is also chairman of the technology working group for Assembly and Packaging of the International Technology Roadmaps for Semiconductors, and has chaired a number of government committees on industry roadmaps.
According to Dr. Bottoms, the large industry poadmap activities including ITRS, JISSO and iNEMI all share one core element: The transistor is no longer the limiting factor in cost or performance of electronic products.
Moore’s law scaling is nearing its end and assembly and packaging innovation is taking up the slack. New materials, new architectures and innovation in packaging and interconnect technologies are emerging. Driven by a consumer-dominated industry, assembly and packaging innovation will make a greater contribution to progress over the next decade than IC innovation. In his keynote presentation, Dr. Bottoms will share his views of how this progress, supported and enabled by the roadmap activities and the industry-wide cooperation they represent, is a foundation of our continued technical progress and growth.
For more info, visit meptec.org.
The MEPTEC (the MicroElectronics Packaging and Test Engineering Council) event will be held Nov. 16, at the in San Jose.
Dr. Bottoms is chairman and CEO of NanoNexus, a provider of advanced contactor and interconnect products. He is also chairman of the technology working group for Assembly and Packaging of the International Technology Roadmaps for Semiconductors, and has chaired a number of government committees on industry roadmaps.
According to Dr. Bottoms, the large industry poadmap activities including ITRS, JISSO and iNEMI all share one core element: The transistor is no longer the limiting factor in cost or performance of electronic products.
Moore’s law scaling is nearing its end and assembly and packaging innovation is taking up the slack. New materials, new architectures and innovation in packaging and interconnect technologies are emerging. Driven by a consumer-dominated industry, assembly and packaging innovation will make a greater contribution to progress over the next decade than IC innovation. In his keynote presentation, Dr. Bottoms will share his views of how this progress, supported and enabled by the roadmap activities and the industry-wide cooperation they represent, is a foundation of our continued technical progress and growth.
For more info, visit meptec.org.
