ISTANBUL  - Kurdish separatists are claiming responsibility for a fire at a warehouse of a major Turkish electronics manufacturer that caused millions of dollars of damage.

Reuters reported today that the Kurdistan Workers Party (PKK) set fire Monday to a Beko Elektronik warehouse in Beylikduzu, outside Istanbul,.

According to a ranking Beko official, damage from the fire was more than $5 million and between 30,000 and 35,000 products were lost -- around half of them television sets.

Beko is a subsidiary of industrial group Koc Holding. Last year the company made more than six million TVs, making it one of the top producers in Europe, Reuters said.

The PKK has engaged in armed battles for an ethnic homeland since 1984.

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WASHINGTON -- The $1.75 billion deal by IBM to sell itsPC division to Lenovo may not pass domestic security reviews, according to a report today.

U.S. federal agencies are reviewing the case on grounds of national security. At issue is Lenovo's announced plans to send Chinese computer experts and researchers to IBM's North Carolina facility, said Enterprise Security Today.

That announcement is creating some consternation at high levels in the U.S. government.  Some members of the Committee on Foreign Investments in the United States are questioning whether the relocation would open the U.S. to potential acts of  industrial espionage.

The CFIUS' role is to review corporate deals that involve foreign firms to determine whether any national security threats may arise. The CFIUS includes the Defense Department, the U.S. Trade Representative's office and the Commerce Department.

One analyst said concerns over the possible breach in security are warranted.

Laura DiDio, an analyst with Yankee Group, was quoted as saying, "China is a still a Communist nation. ... They're very closed, despite these deals, and they sell stuff to people we consider enemies. So there's a real fear here, and it's not unwarranted."

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WEST CHICAGO -- The outlook for sales of connectors remains unchanged: growth of 6 to 8%, according to a leading industry research firm.

However, Bishop & Associates says peak demand in the first half of 2004 raises the bar for those numbers to be reached.

Sales growth in 2005 "will require good demand foer electronics products.... Frankly we are a little concerned," the company said in a recent report.

Order growth has slowed, having declined in October and November. The November book-to-bill -- the most recent month for which data are available, was 1.0, below the year-to-date average of 1.02.

"We envision a scenario in which the first half of 2005 will be flat to the first half of 2004," Bishop said. "If 2005 starts slowly, we believe full year growth in 2005 will be difficult to achieve."

Through November, orders were up 22.2% for the year. November orders slipped 2% sequentially.

Shipments were up 22.9%, the 25th straight month of year-on-year gains.

MINNEAPOLIS - The SMTA seeks papers for its November International Wafer-Level Packaging Congress and Exhibition.The event takes place Nov. 3-4 in San Jose.
 
Called the IWLPC, the event focuses on leading-edge IC packaging and test technologies with  special emphasis on 3D stacked packaging.

Abstracts of 200 words should be submitted by April 1 to smta.org/iwlpc/call_for_papers.cfm or by email to Kristin Nafstad (kristin@smta.org).

 

 

The event is also sponsored by Chip Scale Review.  
 

 

TEMPE, AZ - Three-Five Systems will consolidate its U.S. electronics manufacturing and corporate functions into one location and is exploring possible contraction overseas as well, the company said today. The moves are being made to reduce overhead and excess factory capacity.

TFS, which supplies EMS services, will close its plant in Tempe early this year and move all operations to its Redmond, WA, site. The company did not indicate how many employees would be affected.

The company also said CFO Jeffrey D. Buchanan will resign to remain in Tempe. The firm named James E. Jurgens as interim chief financial officer.

The company also announced that it is exploring opportunities to consolidate its operations in Manila, Philippines. TFS is "working closely" with its principal customer in Manila while also exploring the potential sale of the factory.

TFS lost $47 million on $164 million in sales during the 12 months ended last September.

In a written statement, president and CEO Jack Saltich said, "[S]treamlining operations and driving costs to their lowest possible level are imperative to remaining competitive. While profitability will only be accomplished through a combination of revenue growth and the changes I am announcing today, these actions are a necessary step in that direction."

 

On Dec. 31, in a move that forecast TFS' announcement, the company sold the building in Tempe that housed its headquarters.

The consolidation is expected be completed during the second half of 2005. TFS currently performs low-volume EMS, prototype and medical manufacturing operations in Redmond.

 

Several U.S. sales, marketing and engineering support centers will remain intact.

Jurgens was chief financial officer at Ziatech Corp., a privately held developer of embedded computers for telecom applications, which was purchased by Intel in 2001. TFS said other commitments preclude Jurgens from taking the position on a permanent basis.

 

 

 

GREENVILLE, SC -- Kemet Corp., a leading manufacturer of tantalum and ceramic capacitors, late Wednesday said Jeffrey A. Graves resigned as chief executive and as a director. No reason was made public.

The company tabbed James P. McClintock, president and chief operating officer, and David E. Gable, vice president and chief financial officer, to handle CEO responsibilities on an interim basis.

The board is actively seeking a new CEO.

Last week the company posted wider-than-expected losses of $38.9 million amid declining revenues and inventory problems.

DALLAS, Jan. 25 -- Integrated Performance Systems, a holding company for printed circuit board manufacturers, will consolidate its operations into its Wylie, TX, plant.

The 101,000 sq. ft. Wylie plant is home to Lone Star Circuits, which IPS acquired last November in what is considered a reverse takeover.

The company said it would close its PC Dynamics manufacturing plant located in Frisco, TX. PC Dynamics is a wholly owned subsidiary of IPFS.

The firm said it has begun duplicating processes at its Wylie site and should have all of the new lines running within the next eight weeks.

OYSTER BAY, NY  -- This decade will witness an unprecedented level of growth in the electronics content of an automobile. This trend will be the result of a barrage of emerging advanced automotive safety, engine, infotainment and chassis control technologies, according to the findings of a new study from ABI Research.

Robert LaGuerra states that differing factors around the world are driving this growth for automotive-specific semiconductors. For example, in Europe and Asia, smaller engines are the norm and there is a defined need to match their performance with those of larger displacement engines. To maximize the performance of these smaller engines, advanced engine management technologies including displacement on demand, variable valve timing and direct fuel injection are being aggressively rolled out in these regions.

The same is happening in the U.S., although this is predominantly due to rising fuel costs and CAFE standards. More specifically, new government legislation mandates that automakers must implement advanced airbag safety systems and tire pressure monitoring systems into future car lines.

LaGuerra cautions, "Automotive processors are proliferating, but in some applications adding too many components that are intended to make the car more reliable, may actually reduce reliability." He adds that in some situations, the industry will actually look to simplify things using fewer, heavier-duty processors.

MINNEAPOLIS, Jan. 25 -- The SMTA and Auburn University are seeking papers for an upcoming workshop on electronics for harsh environments. The event takes place June 28-29, in Indianapolis.

Abstracts of 200-300 words are due to conference coordinator Kristin Nafstad (kristin@smta.org) by March 1. Written papers are not required.

SAN JOSE - Flextronics posted record GAAP net income of $98.7 million, up 361%, for its third quarter. The EMS firm also topped previous records for revenues, reporting sales of $4.3 billion, up 3% over last year.

The company recorded restructuring charges of $30.7 million during the quarter, primarily related to closures and consolidations. Excluding one-time items, net income rose 24% to $116.3 million.

The company reaffirmed previous revenue guidance of $3.8 billion to $4.2 billion for the March quarter, and $4.1 billion to $4.5 billion in the June quarter. The company told analysts that end-markets are solid.

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VANCOUVER, Jan. 24 -- Nam Tai Electronics, facing a sharp uptick in orders, will recruit over 1000 more workers this quarter for its manufacturing sites in Shenzhen. The addition will bring the total number of employees to 6,600 by the end of March.

The company has also upgraded its chip on board technology to include gold wire ball bonding for manufacturing CMOS image sensor modules at megapixel quality. CMOS image sensor modules are used 3G camera phones

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SEOUL -- LG Electronics Inc. has signed a memorandum of understanding with Nortel Networks to form a telecom equipment joint venture here.

LG Electronics will hold just under 50%, and Nortel will have 50% plus one share.

The venture, temporarily named LG-Nortel Networks, will focus on developing equipment for 3G wireless networks based on W-CDMA technology, according to press reports.

Nortel is the larger shareholder for the purposes of accounting, the companies said.