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FRANKFURT -- Deutsche Bank has expressed concern over the U.S.-based EMS vendors' high-cost manufacturing footprint and Asian-based ODM/EMS vendors' increasing competitiveness for the past several years. The U.S.-based EMS industry experienced healthy growth in 2003 and 2004 as end market demand improved and Taiwanese companies were just beginning to expand beyond niche offerings. According to DB this trend came to an end in the second quarter of 2005 and is getting worse in Q3.

DB is forecasting U.S.-based EMS sales to decline 5% year-on-year, compared to a 50% Y/Y increase for Hon Hai. Hon Hai, now the largest EMS vendor, may grow by more than $8 billion in 2005 (Jabil and Celestica had 2004 sales of $6.5 and $8.8 billion, respectively). DB believes Hon Hai will continue to take share from poorly positioned EMS vendors like Sanmina-SCI and Solectron in the next year.

Factors contributing to DB’s cautious view on the U.S EMS industry include the excess of high-cost capacity and increasing number of competitors. In addition, the Taiwanese are becoming increasingly competitive on quality. While most U.S. EMS vendors have rationalized the majority of their high-cost capacity, there is still too much capacity at companies like Sanmina-SCI and Solectron.

At the same time, Taiwanese companies like Hon Hai and Asustek have expanded outside of their core offering and are taking share. Asustek, a manufacturer of motherboards, has become a major player in the notebook, server and gaming market, and recently entered the handset market. Hon Hai is manufacturing low- and mid-range datanetworking gear for companies like Cisco, and handsets for Nokia/Motorola.

Rogerstone, UK - Fujifilm Electronic Imaging Ltd. (FFEI) has returned as EMS provider TTems' sole supplier of PCBAs. The partnership is projected to provide TTems with £3 Million in 2006.

TTems has partnered with FFEI - Fujifilm's only manufacturer of electronic pre-press equipment outside Japan - at its Rogerstone site since 1999. FFEI's volume PCBA manufacturing will now take place in the UK.

TTems' NPI team worked to implement the 38 new lines at its Rogerstone facility over a two-month period. The lines are spread across five ranges of FFEI equipment, including the Luxel-V series and V6 machine.

Forest Grove, OR -- Merix Corp., a leading manufacturer of advanced printed circuit boards, promoted Daniel T. Olson to CEO of Asian operations.

Olson, formerly Sr. VP of sales and marketing, has been with Merix since 1999, following senior sales management roles at MacDermid and Olin.

"Dan's leadership and strategic focus at Merix ... gives him the insight necessary for seamless support of our global customers and integration of our pending acquisition of the operations of Eastern Pacific Circuits Limited," said Mark Hollinger, chairman and CEO .

Thomas R. Ingham has been promoted to replace Olson. Ingham joined Merix earlier this year as director of quick-turn sales, and has over 25 years of experience in the industry.

ATLANTA -- PCB Design Conference East, the premier conference and exhibition for PCB engineering, design and manufacture professionals, will celebrate its 10^th anniversary in Manchester, NH, on Oct. 10-14. Dieter Bergman, director of technology transfer at IPC, will deliver the keynote on October 12 with a presentation on "The Designer - Preparing for the Next Decade."

Attendees can choose from more than 40 technical courses taught by industry experts, and visit the two-day product and service exhibition. Special events include a Welcome Luncheon and Industry Icon Roast, an Opening Night Reception on the show floor, Trivia Night, an Ice Cream Social and a Pub Night at Jillians.

The complete conference brochure and registration details are available at pcbeast.com.

Register by September 9 for the early bird discount. PCB Design Conference alumni and members of IPC Designers Council (or other recognized industry user groups) are also eligible for discounts.