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SHANGHAI -- Lenovo, the world's fourth largest PC maker, will outsource production of its notebook computers to Quanta Computer, according to published reports.

Production will begin in the third quarter, the Economic Daily News said, citing sources at component manufacturers.

THOUSAND OAKS, CA -- A Teledyne Technologies subsidiary has entered into an agreement to acquire the defense electronics business of Filtronic PLC for approximately $25.7 million.

Teledyne Ltd. will acquire the unit, which had sales of 14.5 million pounds (about $29 million) for its fiscal year ended May 31. The transaction will close before the end of August, subject to various conditions.

STOCKHOLM -- Second quarter cellphone shipments rose 15% year-over-year to 297 million, a new report claims.

Research firm Strategy Analytics forecast third-quarter sales of 321 million units as demand in emerging markets overcome seasonality in Asia and a slowdown in Western Europe and North America.

PORTSMOUTH, ENGLAND – Semicast forecasts the global market for automotive semiconductors will grow from $20 billion in 2007 to just over $30 billion in 2015. With total 2007 semiconductor revenues of around $255 billion, this suggests the automotive sector accounts for between 7% to 8% of the TAM, says the firm.

Average semiconductor content per new light vehicle is forecast to grow steadily from around $295 in 2007 to $375 in 2015.

Overall, highest growth is forecast for semiconductors used in entertainment systems, such as audio, infotainment, navigation and telematics. Here, demand is forecast to grow from $4 billion last year to $7.5 billion in 2015, a CAGR of almost 9%. The evolution of the entertainment system from audio to infotainment to navigation is the key growth driver in this segment, while increased shipments of rear seat entertainment systems, satellite radio and telematics (such as OnStar) will also drive growth, says Semicast.

Highest semiconductor demand will continue in conventional “under-the-hood” systems. Analysis shows revenues for semiconductors in “under-the-hood” systems accounted for around 80% of the total in 2007; this is forecast to decline only moderately over the period to 2015, to around 75%, says the firm.

NORTH BILLERICA, MA – BTU International Inc., supplier of advanced thermal processing equipment, reported second-quarter net sales of $20.4 million, up 23% sequentially, and up 48% year-over-year.

Net income for the quarter was $300,000, up nearly 67% sequentially, and up 33% compared to the second quarter of 2007.

Net sales for the first six months of 2008 were $37 million, up 22% year-over-year. Net income for the period was $400,000, down nearly 56% compared to the same period last year.

Paul J. van der Wansem, BTU chairman and CEO, said, "Revenues were at the high end of our forecasted range, with strength in both electronics and alternative energy. Despite healthy gross margins, our earnings for the quarter were lower than anticipated, in part due to higher than expected SG&A cost and effective tax rates.

"We will continue to invest in our growth markets, strongly supporting our electronics business and building upon the opportunities we have in the rapidly growing thin film and silicon solar markets.

“In electronics we see some softening [for the second half] after a stronger than anticipated first half. Revenues for the third quarter are expected to be flat, as compared to the second quarter … " he said.

EL SEGUNDO, CA – Revenue for the global contract manufacturing industry, consisting of EMS and ODM providers, is set to expand to $432.3 billion by 2012, rising at a CAGR of 7.2% from 2007.

While a $126.7 billion gain in revenue during a five-year period may sound like fantastic growth, it actually represents a major slowdown compared to years past, on a percentage basis, says iSuppli Corp.

SAN JOSE, CA – Tessera Technologies Inc., provider of miniaturization technologies, reported total second-quarter revenue of $56.3 million, up about 17% year-over-year.

Net income was $84,000, down significantly from a net income of $9.9 million during the same quarter last year. Income for the second quarter 2008 included non-cash charges of $5.8 million for stock-based compensation and $2.9 million for amortization of acquired intangibles.

Total revenue for the six-month period ended June 30 was $115.7 million, up 19.2% year-over-year. Net income for the period was $2.3 million, down 89% compared to the same period in 2007.

“The significant year-over-year growth in our high margin, recurring royalties highlights the fundamental strength of our business,” said Bruce McWilliams, chairman, president and CEO for Tessera. “In the second half of 2008, we expect to build on the traction gained in our Consumer Imaging business, as illustrated by the new license agreement with Samsung.”

Tessera expects third-quarter total revenue to be within the range of $62 million to $64 million.

LOUISVILLE, KY – Sypris Solutions reported revenue of $110.4 million for the second quarter, down nearly 5% year-over-year.

The company reported a net loss of $900,000 compared to a net loss of $2.3 million for the second quarter last year.

ELKHART, IN – CTS Corp. announced second-quarter revenues of $186.1 million, up 8.9% year-over-year.

Net earnings of $10 million were up 41% compared to the same period in 2007.

EL SEGUNDO, CA – Although China’s semiconductor purchasing boom is cooling down, the nation’s demand for locally designed chips is heating up, with domestic consumption expected to rise by more than 60% from 2007 to 2012, according to iSuppli Corp.

By 2012, $42.1 billion worth of Chinese-designed semiconductors will be purchased for use in electronic equipment made in the nation, up 63.4% from 2007, says the research firm.

“The growth of China's semiconductor consumption has slowed since 2005,” said Kevin Wang, senior manager for China Research at iSuppli. “The main reason is that foreign electronic equipment makers have decelerated the pace of their manufacturing outsourcing to China. This is having a negative impact on China’s electronic equipment manufacturing and semiconductor industries. China’s semiconductor industry now is undergoing a transformation, with an increased focus on designing chips for electronic products that are popular in the nation.”

China- and Hong Kong-based electronics OEMs and contract manufacturers are driving the demand for these locally designed chips. However, foreign ODMs that develop and manufacture goods for Chinese OEMs also are contributing to the growth, says iSuppli.

“In the electronics industry, China often is seen simply as a low-cost manufacturing region,” Wang said. “However, the rise of the semiconductor design business in China shows the nation’s high-tech future increasingly will reside in capitalizing on local brainpower to produce innovative products that appeal to the domestic audience.”

Mobile handsets were the largest application for Chinese-designed semiconductors in 2007, consuming $4.4 billion worth of chips for the year. PMP/MP3 players were the second-largest application, buying $2.2 billion worth of semiconductors.

Mobile handsets will remain the largest application through 2012, when the area will consume $9.8 billion worth of domestically designed chips. Notebook PCs by 2012 will become the second-largest area for domestically designed semiconductors, with $3.4 billion worth of consumption for the year, says the firm.

The fastest-growing segment for domestically designed semiconductors during the next few years will be mobile communications infrastructure equipment, which will experience a 24.9% CAGR from 2007 to 2012. Next will be LCD-TVs, which will achieve a 21.8% CAGR during the same period, according to iSuppli.

Chinese manufacturers that concentrate on other consumer electronics products, such as digital set-top boxes and white-good appliances, also will increase their spending on domestically designed chips during the coming years. Other expanding application areas will include car infotainment products and security systems such as surveillance devices, smoke detectors and door security systems.

The boom in locally designed semiconductor usage in China comes at a time of deceleration for the nation’s overall chip consumption. China's consumption of all kinds of semiconductors is expected to expand to $81 billion in 2008, up 7% year-over-year, iSuppli predicts. Consumption is expected to grow at a 7.7% CAGR from 2007 to 2012. In contrast, China’s overall semiconductor consumption grew at a CAGR of 27.7% from 2001 to 2006.

This year is a difficult one for Chinese electronic equipment producers, especially smaller manufacturers, says iSuppli. China’s central government has adopted a tight monetary policy to avoid overheating the economy, even while it reduced export tax rebates. Furthermore, the increasing value of the Chinese yuan is placing great pressure on domestic companies producing low-end electronic equipment. Furthermore, operating and labor costs are still rising, along with prices for food, gasoline and electricity. Higher inflation, a weakened equity market and the devastating earthquake in Sichuan province negatively affected domestic market demand for electronic equipment in the first half of 2008.

iSuppli anticipates the market will be in a readjustment period for the remainder of 2008 and 2009. Small companies without strong R&D capabilities will exit the market. At the same time, many leading Chinese OEMs, such as Huawei and ZTE, will grow larger by aggressively targeting international markets. Meanwhile, Chinese independent design houses are expected to acquire more international clients.

ANGELTON, TX – Benchmark Electronics president Gayla Delly told analysts the telecom, industrial controls and medical sectors are bright spots for the EMS company, but a customer shift to lower-priced computers is hurting revenues.

For the June quarter, Benchmark saw sequential strength in industrial controls (up 13%), medical (up 7%) and telecommunications (up 4%). Computing fell 6% – out of step with typical seasonality – and test and instrumentation slid 12%.

INGOLSTADT, GERMANY – Zestron this year will open a 30,500 sq. ft. facility in Ingolstadt, about 62 miles north of Munich. The new European headquarters will include a state-of-the-art, 9,000 sq. ft. analytical and technical center, the largest in Europe, the company said.

The company has also hired an unspecified number of process engineers. The facility is scheduled for completion by the end of 2008.

Last year, Zestron America moved to new headquarters in the US and the company expanded its facility in China.