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News

SAN JOSE – Electronic design automation revenue for the third quarter was up 6%, to $1.1 billion, over last year, the EDA Consortium said today. PCB and multichip module revenue was flat, at $81 million.

EDAC chairman Wally Rhines called the strength "broad-based, with all regions up, as well as nearly all product segments."

EDA license and maintenance sales grew 6% in the third quarter to $851 million.

EDA's largest tool category, computer-aided engineering, generated revenue of $469 million in Q3, up 4% over in 2004. IC physical design and verification reported revenue of $296 million, a 9% rise. Semiconductor property revenue totaled $199 million, up 5%, and services revenue rose 9% to $72 million.

North America, EDA's largest region, purchased $532 million of EDA products and services, up 3%. Western Europe sales increased 7% to $218 million. Revenue in Japan grew 9% to $243 million. Elsewhere, sales rose for the 27th straight quarter, increasing 9% to $129 million.

Reporting companies employed 21,140 professionals in Q3, up 3% from a year ago.

TOKYO – Electronics production in Japan will fell in 2005 but will rebound in 2006. That’s according to the Japan Electronics and Information Technology Industries Association.

JEITA forecast domestic production of $161.4 billion for 2005, down 3.5% from revised 2004 figures. The trade group had previously guided for a 2.8% gain.

ST. PETERSBURG, FL – The automotive electronics market is primed for outsourcing, Jabil Circuit CEO Tim Main said in an interview published this week.

Main told Forbes.com that the combination of higher electronics content in vehicles and “an intense need” for auto makers and their suppliers to cut costs bodes well for “great long-term growth.”

WASHINGTON -- Dr. Rick Tsai, president and chief executive of Taiwan Semiconductor Manufacturing Co., and David McCormick, undersecretary Bureau of Industry & Security, U.S. Department of Commerce will speak next month on challenges and opportunities presented by the increasing integration of the U.S., Taiwan and China semiconductor markets.

The Taiwan + China Semiconductor Outlook 2006 will be held Jan. 12, in Santa Clara, CA. The US-Taiwan Business Council is host of the event, the third in a serie. The SIA is a cosponsor.

Visit www.taiwan-china-outlook.com for more information.

SAN JOSE -- Sanmina-SCI today said it would sign a multi-year deal to build PC peripherals for Adaptec Inc. As part of the deal, Sanmina will also take over certain Singapore manufacturing assets and inventory from Adaptec. The deal is expected to close in January, although no financial terms were announced.

HIALEAH, FL -- EMS provider Simclar Inc. will buy Northrop Grumman's Litton Interconnect Technologies assembly business in the U.S. for $28 million. Simclar Inc.'s parent company has agreed to acquire certain assets of the Litton assembly businesses in the U.K. and China through its subsidiary Simclar Interconnect Technologies Ltd.

GENEVA -- The International Electrotechnical Commission has decided not to publish a standard covering the marking and labeling of products designated as lead-free or RoHS compliant.

In a press release posted to an industry listserv, the trade group reportedly said it would instead produce a technical specification with proposals for marking presence or non-presence of substances. In doing so, the press release said, IEC turned down a proposal from IPC, which has pending standards for marking and labeling.

MILPITAS, CA -- Solectron Corp. Thursday night reported fiscal first-quarter net earnings of $20.2 million on sales of $2.46 billion. Last year, the EMS firm showed a profit of $58.2 million, while sales dropped about 9% from $2.69 billion a year ago.

SINGAPORE -- Seagate Technology today said it would buy Maxtor Corp. in an all-stock deal worth $1.9 billion. An antitrust review will hold up the transaction until the latter half of 2006, Seagate CFO Charles Pope said on a conference call announcing the deal.

ST. PETERSBURG, FL-- Jabil Circuit's fiscal first quarter profit climbed 38% on strong demand for consumer electronics and telecom gear. For November quarter, Jabil earned $76.9 million, up from $55.9 million a year ago.

Revenue rose 31% percent to $2.4 billion from $1.83 billion last year.

TIMISOARA, Romania – Solectron has opened a Design and Engineering Services Center in Timisoara, its largest European facility. The added capabilities will enable electrical and mechanical design, advanced process technology, leading edge test development and failure analysis.

Solectron is the largest private employer in the Timisoara region. The site serves major OEMs in computer, telecommunications, digital consumer and industrial markets.

LOUISVILLE -- Sypris Solutions Inc., a provider of EMS services, lowered its forecast for the fourth quarter, blaming customer inventories, and delayed shipments and higher-than-expected labor costs.

Sypris today updated its fourth-quarter guidance to breakeven to a loss of 5 cents per share, down from 12 to 15 cents per share. The company forecast sales of $133 million to $135 million, down from previous guidance of $135 million to $140 million for the quarter.