Circuits Assembly Online Magazine - News

News

NEW DELHI -- Arun Kumar, 57, president and managing director of Flextronics Software Systems died Friday night of a cardiac arrest in San Diego, reports the Times of India.

According to available information, Kumar had gone to a hospital for a regular health check up, where the doctors detected irregular heart beats and recommended immediate surgery.

In India, he headed Hughes Software Systems, India, which was later acquired by Flextronics. He was awarded the Hughes Chairman's Honour Award of Excellence in May 2000, and that September he was nominated for the Ernst & Young Entrepreneur of the Year award.

Kumar is survived by his wife Amita, and his son Kunal.

"While we all remember Arun as a visionary leader and a professional, he was first and foremost an outstanding human being," said Ash Bhardwaj, CEO of Flextronics Software Systems. "Arun had an unyielding belief that people always come first. This philosophy impacted everyone who came into contact with him, both professionally and socially. We have lost an outstanding leader, a true friend and a genuinely decent man. All of us at FSS mourn Arun's passing and extend our deepest sympathies to his family."

Framingham, MA -- According to a recent report from Manufacturing Insights, the APEJ (Asia Pacific excluding Japan) manufacturing industry has been recovering and gaining momentum after the initial turnaround observed in 2004. APEJ manufacturing IT spending was valued at $15 billion in 2005 and is expected to reach $22 billion in 2010, a CAGR of 7.7%.

The top three segments in terms of IT expenditure are high-tech, automotive and chemical. From a geographic perspective, the Greater China sub-region had the largest manufacturing IT spending, followed by ANZ and Korea.

"2005 has been a year plagued with external environmental uncertainties globally and notably in the Asian region, with high-profile events such as the repeated terrorists bombing in Bali; the Asian tsunamis and numerous other natural disasters across the region; the bird flu; rising oil price and ongoing geo-political tensions. Despite the above factors, the Asian region as a whole has continued its recovery and stabilization from the economic crises, which began in the late 1990s," says Tan Mang Teck, research director, Asia/Pacific manufacturing research. "The APEJ region will continue to be a fast growing regional economic block, powered by the emerging economic engines of China and India."

Sunnyvale, CA -- Palm admitted last week that it has stopped shipping its Treo 650 phone to Europe because the devices do not comply with the EU’s RoHS restrictions that fell into place on July 1. This was the only Palm smart phone available in Europe.

The company decided nine months ago that it would not update the product to meet the regulations, according to an IDC report published in Macworld.

STAMFORD, CT -- Worldwide semiconductor capital equipment spending will rocket to new heights this year before falling to earth in 2007, Gartner said in a new report. The research firm said equipment sales were on pace to jump 24.8% this year, to $42.3 billion.

However, the firm forecasts a 4.5% drop in 2007 and then a rebound in 2008.

SIDNEY, NY -- Flooding hit a Amphenol manufacturing site in upstate New York and the company says it will take $15 million to $30 million in expenses in its second quarter as a result.

According to various reports, several feet of water deluged the Sidney plant, a 600,000 sq. ft. facility which builds aerospace and industrial connectors. The plant employs about 1,500 workers and generates a reported $150 million to $200 million per year.

SAN JOSE, CA – X-line Asset Management, a provider of disposition and auction services, will conduct a second auction on behalf of Connor Winfield for the former assets of AG Communications in Genoa, IL, on July 10-12. The online liquidation includes over 200 pieces of SMT, PCB, and test and measurement equipment.

The company will also auction surplus equipment for Benchmark Electronics in Leicester, UK, on July 18. Highlighted items include 10 high-speed Siemens pick-and-place machines, three Genrad ICT testers and three DEK screen printers.

X-line is conducting this second sale in conjunction with the Branford Group and Bache Treharne.

For more info. about the auctions, visit xlineassets.com.

Wellesley, MA -- The value of the worldwide conformal coatings market hit $800 million in 2005, according to a new report from BCC Research. It is projected to reach $1.6 billion by 2010, an average annual growth rate of 15.2%. Key markets include semiconductors/electronics, medical devices, aerospace and automotive.

Electronics use dominated the conformal coatings market in 2005 and will continue to do so through 2010, holding 46% of the market share and growing at an AAGR of 13.6%, BCC predicts. IC barriers will drive the semiconductor and electronics sectors. Conformal coatings also find frequent use in new device packing systems and high frequency wireless consumer electronics.

Conformal coatings are used in a range of electronics applications to provide a variety of distinctive performance characteristics to components and devices.

ALAMEDA, CA -- There is a continuing disconnect between what OEMs want and what they say they are receiving from the contract manufacturers that build their products. That's according to a new study by research firm Technology Forecasters Inc.

Based on interviews with approximately 130 managers at more than 100 OEMs, the top priority is a need for their contract manufacturers to reduce the total cost of ownership.

SAN FRANCISCO – North American CIOs predicted IT budgets would grow 6.9% over the next 12 months, down from 8.6% in March, according to a June poll by Deutsche Bank and CIO magazine. Spending projections were up in most categories but were down for data networking, storage systems and e-business applications.

TEMPE, AZ -- Economic activity in the manufacturing sector grew in June for the 37th consecutive month, while the overall economy grew for the 56th consecutive month, according to the monthly ISM survey of manufacturing executives.

The PMI indicates that the manufacturing economy grew in June for the 37th consecutive month as it registered 53.8%, a decrease of 0.6 percentage point when compared to May's reading of 54.4%. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.

The report was issued today by the Institute for Supply Management.

A PMI over 42%, over a period of time, generally indicates an expansion of the overall economy. The June PMI indicates that both the overall economy and the manufacturing sector are growing.

Year to date, the average PMI (55.4%) corresponds to a 4.6% increase in real GDP. The annualized June rate of 53.8% corresponds to a 4% increase in real GDP, said chairman Norbert J. Ore.

"Manufacturing growth continued in June, and although the rate of growth slowed slightly, renewed strength in June's new orders index provides encouragement for the third quarter. The sector is benefiting from the weaker dollar and business investment. While energy and raw material prices are still a concern, our members indicate that they are coping with the challenges, and generally see their businesses in a continuing growth mode."

The industries reporting growth in June included Industrial and Commercial Equipment and Computers, and Electronic Components and Equipment.

SAN JOSE – Worldwide sales of semiconductors grew 9.4% in May, the SIA reported today. Sales rose 0.7% sequentially, reaching $19.7 billion, on continued demands for new cellphones and other consumer electronics.

“Worldwide sales of semiconductors in May continued to reflect generally favorable worldwide economic conditions,” said SIA president George Scalise. “As consumer products drive an increasing proportion of microchip sales, the growth of the semiconductor industry more closely reflects overall economic growth."

MIDDLETOWN, PA -- Phoenix Contact officials from Germany and the U.S. marked 25 years of U.S. operations by breaking ground for a $12 million expansion project at U.S. headquarters in Middletown.

The company is building a new 45,000 sq. ft. distribution center and expanding its manufacturing facility from 28,000 to 90,000 sq. ft.
The distribution center is slated for completion in 2007, and the manufacturing expansion is expected to be finished by 2008.

“It was an ambitious and visionary decision of my brother Gerd Eisert, the architect of the Phoenix Contact business activities abroad, to enter the North American continent 25 years ago,” said CEO Klaus Eisert. “He was convinced that this highly developed nation would be a future market for Phoenix Contact. At that time, we were competing with a small range of European DIN-rail terminal blocks on the one hand and PCB terminal blocks on the other hand. This turned out to be a success story!

“The market chances with the product range completed by surge voltage protection, Interface modules and automation technology have not changed today. We will do our utmost to provide for more marketability and thus for more customer satisfaction.”

Over 120 employees have been hired during the past year and a half, and the company plans to add 250 more by 2010.

Last year the company became a Trans-National Corporation, and the Middletown site, along with headquarters in Germany and China, became one of three Regional Business Units (RBUs). The Americas RBU is responsible for R&D and engineering of new products for all of the Americas subsidiaries.