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SEATTLE -- Microsoft will increase supplies of its Xbox 360 games console to retailers by two to three times, beginning this week.

The company, which due to component shortages has struggled with production of the popular device, has lowered its target to 4.5 million to 5.5 million units to be shipped by June.

The component situation has been resolved, the company said.

Microsoft outsources production of the consoles to Wistron, Flextronics and Celestica.

SAN JOSE -- Verigy Pte. Ltd., the ATE branch of Agilent which is on track to be spun off,  will outsource its manufacturing to Flextronics beginning later this year.

The plan was detailed in a S-1 filing required as part of Verigy's proposed initial public offering.
Read more ...
NEW YORK -- IBM has signed a long-term contract with Solectron Corp. to manage billions of dollars in indirect procurement services across 17 countries. Other terms of the contract were not disclosed.

Under the contract, IBM will manage more than $1.2 billion per year of indirect spend for temporary contract services, office equipment, utilities and telecommunications. IBM will integrate its procurement software with Solectron's internal systems and controls.

IBM will enable Web-based requisitioning as well as efficient procurement and supplier payment.

"The savings we expect from this contract with IBM will contribute to both operational and process innovation and simplification, which improves services to our customers and suppliers," says Perry Mulligan, chief procurement officer, Solectron, in a prepared statement.

IBM will supply commodity experts, a global contact center and an accounts payable processing center supporting Solectron suppliers and employees around the globe. Solectron will also have access to a full range of transformation and maintenance services from IBM.
Lexington, KY -- SMC and Note AB have joined forces to establish an International Procurement Office (IPO) in Shenzhen. Both companies are partners in the ems-Alliance, a group of select EMS providers from around the world.

“Forming an IPO has been a goal for SMC since joining the ems-Alliance in 2003,” said Craig Schuster, SMC COO. “Through our established relationship with ems-Alliance partner Note AB, and strategies developed by the Alliance supply team, SMC was able to open an IPO in late 2005 in Shenzhen City, Guangdon Province, Peoples Republic of China.” 

The day to day operations of the IPO are run by general manager Derek Teagle of Note AB. Teagle works with a staff of six English speaking Chinese nationals, consisting of buyers and engineers, who represent SMC and Note AB in sourcing manufacturing components in the Pacific Rim, most heavily concentrated in the low-cost region of China.  They currently source custom build-to-print products such as: PCBs, cables, wiring harnesses, metals and plastics. They can also source relays, connectors and transformers. 

Once the IPO locates a new supplier they must then go through an evaluation phase. The IPO office works to evaluate, qualify and approve a custom supplier prior to any purchases. On-site visits are mandatory for each new custom supplier. 

SMC’s purchasing department then takes over and makes the actual purchase of the components and uses their previously established logistics companies to ship product. SMC is currently purchasing approximately 10% of their manufacturing materials off-shore.

SARATOGA, CA – State of the art wafer fabrication capacity reached a record high of 99% in the fourth quarter of 2005, prompting speculation over a potential recession.

According to research firm Advanced Forecasting Inc., the fourth-quarter utilization level is “reminiscent” of cycles in 1995 and 2000 in which utilization rates of the SoA technology (defined as line widths smaller than 0.12 microns) topped 97%, only to be followed by a recession.

This time it’s different, the semiconductor forecasting house says. Read more ...
SCOTTSDALE, AZ-- Aegis Assessments has ordered a $250,000 initial production run of the SafetyNet RadioBridge from contract manufacturer CirTran Corp. Aegis is a wireless technology company that provides products that improve emergency communications for homeland security, public safety and commercial applications,

 
CirTran was previously awarded a contract by Aegis to redesign the product, which interconnects incompatible radios.The project was performed at CirTran's ISO 9001:2000-certified manufacturing facility in Salt Lake City.

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