Market News

HERNDON, VA – The International Electronics Manufacturing Initiative today released a statement defining low-halogen (BFR/CFR/PVC-free) for electronics products. 
 
For PCBs and board laminates, iNEMI members define low halogen as containing no more than 1500 ppm of total halogens in the resin plus reinforcement matrix, and no more than 900 ppm (each) of bromine or chlorine.
 
For components, each plastic in the component should contain less than 1000 ppm of bromine, if the source is from brominated flame retardants, and less than 1000 ppm of chlorine, if the source is from chlorinated flame retardants, PVC or PVC copolymers.
 
Members supporting the statement include Cisco, Dell, Doosan, H-P, Intel, Lenovo, Nan Ya Plastics, Senju Comtek, Sun Microsystems and Tyco Electronics.
 
The statement comes following iNEMI’s April announcement of its HFR-Free Leadership Program, through which several of the consortium’s OEM and supply-chain members are working to assess the feasibility of a broad conversion to HFR-free PCB materials.
 
Three specific project teams are now working on the program, including:
 
· The HFR-Free PCB Materials Project, which plans to identify technology limitations involved in transitioning to HFR-free PCB materials.
· The HFR-Free Signal Integrity Project, which focuses on ensuring no electrical signal degradation in HFR-free PCB materials.
· The PVC Alternatives Project, which evaluates alternatives to PVC (including additives) in electronic cable and wire applications using a lifecycle assessment approach. 

MELVILLE, NY – Park Electrochemical Corp. reported first-quarter sales fell 38% from last year to $36.7 million. 
 
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LOS ALTOS, CA – The dismal picture for global equipment production should brighten considerably in 2010, according to a new research report.

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CAMBRIDGE, MA -- Global purchases of IT goods and services by businesses and governments will fall 10.6% this year, according to a just-released report. But buying should resume in the fourth quarter, says Forrester Research.

The research firm revised an earlier forecast, which called for a 3% drop worldwide this year. The firm downgraded its US IT outlook to a 5.1% drop, from 3.1% decline. Computer and communications equipment sales will drop 13.5% and 12.4%, respectively, this year, the company said.

In a press release, the firm said, “New data about large declines in business technology investment during the first quarter prompted Forrester to update its forecasts for technology spending.” The company also said now US IT spending should restart in the December quarter.

“While [the] first quarter saw a scary drop in purchases in the US tech market, ironically that is good news for the long run and we expect to see a stronger rebound sooner,” said Forrester analyst Andrew Bartels. “The big drops are not precursors to further declines; rather, we think they are evidence of a temporary pause in US tech purchases, which we expect to start recovering in Q4 as businesses realize that they overreacted in the first quarter.”

WASHINGTON – The National Association of Manufacturers expressed strong support for the decision by the US and European Union to initiate dispute settlement procedures in the World Trade Organization regarding China's export restraints.

In a press release, NAM vice president for International Economic Affairs Frank Vargo said, "NAM wants to see a robust, healthy, long-term trade relationship with China. That relationship must include adherence to the global trade rules that China committed to follow."

Vargo said China’s export restriction of nine key raw materials has "distorted trade and caused economic injury" to NAM members. China’s actions, NAM said, have "had the effect of subsidizing Chinese producers by allowing them to pay a lower price for those materials than US companies. In our view, this is a clear violation of commitments China made when joining the WTO."

The US and China have been engaged in discussions on the matter for two years.

NAM supported China’s inclusion in the WTO because it would bind the nation to international trade rules, including provisions for resolving trade disputes. "The decision by the Obama Administration to file this case is in fact a further sign of maturity in the US-China trade relationship," NAM said.

SAN JOSE -- Flextronics is among several Nortel Networks creditors calling for changes to the beleaguered telecom OEM's planned sale of certain wireless assets to Nokia Siemens Networks.

The Nortel-Nokia Siemens deal is worth some $650 million, which Nortel desperately needs to exit bankruptcy. But the creditors could hold up or cancel the deal, pending changes to the auction for the company's CDMA and LTE wireless assets.

Among their chief complaints: The $22.5 million breakup fee owed to Nokia Siemens, should Nortel sell the assets to someone else, and a term that permits Nokia Siemens to see competitors' bids. The creditors claim the rules unfairly handicap other potential bidders.

Nortel said it had one other bid besides the offer from Nokia Siemens. The Nokia Siemens deal is expected to close in July, pending other offers. According to reports, Nortel's creditors want the auction to last at least 15 more days in the hopes of generating additional bids.

Flextronics heads the major US creditors committee. The EMS firm makes a reported 70% of Nortel's equipment.

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