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ST. PETERSBURG, FL - Jabil Circuit Inc. has begun construction of a greenfield electronics manufacturing facility in Zarkappatya, Uzhgorod. The new factory is expected to create 1,500 jobs.
 
“We believe the Ukraine will become a major player in electronics manufacturing," said John Lovato, Jabil’s European president. "The country has all it takes to successfully compete with Asia on a landed cost basis to the European market; educated and available labor force at a competitive cost, proximity to the European market, available natural resources to develop a strong supplier base and cooperative government support."
 
The 26,000-m² facility will be operational next Spring. Jabil plans to develop in the Special Economic Zone Zarkappatya, an industrial park.
 
Jabil has manufactured electronics in Ukraine since 2004 and was one of the first EMS providers to establish a presence in the country. The company employs 900 at its facility in Uzhgorod.
ANAHEIM, CA -- Quickturn PCB company DDi Corp. has completed the sale of its assembly business to Veritek Manufacturing Services for approximately $12 million in cash. The sale reflects the company's previously announced strategy to focus on its core PCB fabrication, engineering and manufacturing business.

In addition to the sale of its assembly division, DDi is acquiring Sovereign Circuits, a privately held printed circuit board manufacturer that builds for the military, aerospace and high reliability commercial markets. The acquisition is expected to close this month.

CLINTON, NY – More than 40 technicians and applications engineers attended Indium Corp.’ s 4th Annual Global Technical Summit in September.  Attendees from Asia, Europe, Mexico, and the U.S. learned about new products, current research, and breakthrough developments, and presented case studies.

The agenda included presentations by Dr. Claudius Ferger, manager of advanced plastic packaging at IBM’s Thomas J. Watson Research Center; Indium vice president of technology Dr. Ning-Cheng Lee and senior technologist Dr. Ronald C. Lasky.

FREMONT, CA – Scientific Technologies (STI) has completed its merger with a subsidiary of Japan-based Omron Corp. STI shareholders will receive $10.67 per share in cash as a result of the merger, and STI will cease to be a publicly traded company.
 
As part of the merger, Omron acquired STI’s safety products group, and STI’s automation products group was sold and becomes a standalone company. The total transaction values the equity of the company at approximately $110.8 million.
MILPITAS, CA – Flex circuit manufacturer Lenthor Engineering has updated technical details in its Flexible Circuit Design Guide. The new version is available at www.lenthor.com.
 
The guide is intended to provide a comprehensive understanding of the use, design and fabrication of flexible and rigid-flexible printed circuit boards.
ALLEN, TX -- Sanmina-SCI has signed a deal to assemble certain components designed by Enablence Technologies and used in household optical modems, the companies told a local paper. Financial terms were not disclosed.


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SAN FRANCISCO -- A September poll of CIOs predicts IT budgets will grow 6.5% over the next 12 months, down slightly from 6.9% in June.

Optimism among CIOs at the biggest companies was higher than in the previous two quarters, suggesting seasonal strength among the biggest companies as the year ends, said Deutsche Bank, which cosponsors the poll. 
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BANNOCKBURN, IL — Rigid PCB shipments by North American fabricators rose 8% in August while bookings climbed 7.7% year-over-year, according to a monthly poll. Flex circuit shipments were up 27% and bookings were up 30.5% percent, IPC said.

The rigid board book-to-bill ratio rose 0.04 points to 1.06, and the flex circuit book-to-bill ratio was up 0.04 points to 1.05. The overall ratio was also 1.05, up 0.03 points. The ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period. A ratio of more than 1.0 suggests probable near-term growth.

Year to date, rigid PCB shipments are up 10.6%, and bookings are up 13.8%. Flex circuit shipments are up 4.5%, bookings are down 8.4%.

Combined shipments in August increased 9.3% from a year ago and bookings increased 9%. Year to date, combined shipments are up 10.2%, bookings are up 12.1%. Rigid PCBs make up an estimated 85% of the North American market, IPC said.

The data reflect sales, not production, IPC notes. For the month, 89% of the PCB shipments reported were produced in the U.S. or Canada. Furthermore, about 26% of the flex circuit sales comes from value-added services.
SAN JOSE – Worldwide sales of semiconductors reached an all-time monthly record of $20.5 billion in August, rising 10.5% over August 2005, the Semiconductor Industry Association reported Monday. Sales increased  2.1% from July.

The previous record for one-month worldwide chip sales was $20.4 billion in November 2005.
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AUSTIN, TX -- Dell Inc. will hire 500 more engineers for its product development operations in Texas. In a press conference, company  executives said hiring would begin immediately for electrical, software and mechanical engineers and program managers. Read more ...
ST. PETERSBURG, FL -- Top Tier EMS provider Jabil Circuit will take a $120.2 million fourth-quarter restructuring charge as it prepares to close certain plants, according to a company SEC filing. While industry speculation has centered on the possible closing of one to two plants in the U.S., the filing was not specific but implied that certain changes would take place abroad.
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EL SEGUNDO, CA — Technological developments in engine management and the incorporation of safety systems in cars will drive a 21.8% CAGR in the Indian automotive electronics market, iSuppli Corp. said today.

“The Indian automotive electronics industry is expected to achieve such robust growth, despite challenges such as a cost-sensitive Indian market, poor infrastructure and corrupt bureaucracy,” said Jagdish Rebello, Ph. D., director and principal analyst for iSuppli Corp.

“One of the emerging trends in the Indian automobile industry is the development of a mushrooming automotive electronics market inside the motor vehicle segment,” Rebello added.

Today, the automotive body electronics and automotive sensor areas represent 1% and 6%, respectively, of India’s overall automotive electronics market. Government initiatives toward safety and environmental issues and the overall shift in customer preferences to technologically-superior automobiles are expected to push tremendous growth in those segments, however.

Engine management systems, such as ECU and fuel-injection technology, account for 45% of the power-train segment, which dominates the Indian automotive electronics market. India’s market for power-train electronics is expected to grow at a CAGR of 17.3% from 2005 to 2010.

Technologies such as Multi Point Fuel Injection (MPFI), Common Rail Direct Injection (CRDI) and piezoelectric fuel injection systems are being rapidly adopted in Indian automobiles.

If government initiatives such as its vehicle safety policy are implemented, rapid growth in the safety and control segment can be expected. The market for safety electronics is expected to expand at a CAGR of about 50% from 2005 to 2010. Indigenous safety system manufacturers, such as Sona Koyo Steering Systems Ltd. and Sundaram Clayton Ltd., will derive the maximum benefit from this development.

While automotive engine management and safety systems will be the main market drivers for Indian automotive electronics, production of cutting-edge digital instrumentation and electronic ignition systems is on the rise. These systems are being used in high-end motorcycles—which iSuppli includes in its automotive forecasts—including Hero Honda Group’s Karizma and Bajaj Auto Ltd.’s Pulsar DTS-Fi.

Market players, such as Minda Huff Ltd., also have launched state-of-the-art security systems for motor vehicles. Some of them include ultrasonic movement detectors and digital key immobilizers.

CD/MP3 players are expected to dominate the car-entertainment segment, with cassette players losing their market share. The increased influence of global players like Sony and Pioneer Electronics will also strengthen the market for DVD players in India, which is currently in the nascent stage.

Much of this technological innovation is being brought to market from distribution networks that are playing a vital role in the Indian automotive electronics industry. These distribution networks bridge the gap between unorganized segments—which include relatively smaller, indigenous electronic system manufacturers—and the players at the apex of the automotive value chain, such as automotive system OEMs, design houses and vehicle OEMs. Global dealers, such as Avnet Inc. and Arrow Asia Pac Ltd., maintain a significant presence in the Indian automotive electronics market.

 

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