Market News

STAMFORD, CT -- IT budgets will drop 4.7% on average this year, according to the latest survey of the nation's corporate chief information officers.

The survey, conducted between March 1 and April 30 by Gartner, found only 4% of CIOs are increasing their IT budgets.

Meanwhile, 42% said they have trimmed expenditures and 54% reported no change.

According to the survey, CIOs are bringing work in-house and pushing out capital spending, Gartner found.

BANNOCKBURN, ILIPC’s spring 2009 Supply Chain Tracker this week showed continuing economic contraction, but also indicated the first signs of recovery in the electronics industry.

IPC's global statistical programs for several industry segments all show worsening year-over-year growth rates in the first quarter, after growth rates turned negative in late 2008.
 
The association’s North American Electronics Industry Performance Index fell 29%. This is the third straight quarter the index has declined. This index monitors the performance of the North American electronics supply chain.
 
Some leading indicators, however, are beginning to show improvement. The April book-to-bill ratio for the North American PCB industry climbed for the third straight month from 0.89 to 0.97, says IPC. This ratio still indicates lagging demand, but it is trending toward 1.0, the point of parity between bookings and shipments.
 
The EMS book-to-bill ratio inched up to 0.95 at the end of the quarter. Semiconductor sales, while still in negative territory, improved in the quarter.
 
The number or size of the reporting companies was not disclosed.

BRUSSELS -- As of June 1, all EU suppliers are now required to comply with a raft of substance restrictions under the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation.

The substance restrictions apply every time an article is supplied (including components, sub-assemblies and finished equipment) and enforcement action can be taken at any point in the supply chain. The substance restrictions also apply to distributors that resell components and sub-assemblies, and retailers that resell finished equipment. 

The 53 substance restrictions are detailed in Annex XVII of the REACH Regulation (as amended) and cover a range of applications. In addition to substances already restricted under the RoHS Directive, there are 19 additional REACH substance restrictions that can be relevant to electrical and electronics equipment and hardware.  

More substances are expected be added to the list by the European Chemicals Agency and EU Member States. However, the list of REACH restricted substances is expected to develop more slowly than the REACH Candidate List of Substances of Very High Concern, which may grow by up to 25 substances per year according to the ECA. Substances on the Candidate List require declaration if the component, sub-assembly or finished equipment contains more than 0.1% w/w of that substance.

REACH enforcement is carried out through Member State regulations and is coordinated across Europe by the ECHA Forum for Exchange for Information on Enforcement. In France, for example, companies that do not comply with REACH restrictions face a maximum prison sentence of two years or a maximum fine of €75,000. In the UK, noncompliant companies face a maximum penalty on conviction on indictment of a fine (unlimited) or imprisonment not exceeding two years, or both.

SAN JOSE – The Semiconductor Industry Association today forecast worldwide semiconductor sales would drop 21.3% for the year to $195.6 billion.

In its annual mid-year forecast, the trade group projects that sales will begin to rebound in 2010, with year-on-year growth of 6.5% to $208.3 billion, followed by 6.5% growth in 2011 to $221.9 billion.

The numbers pale against SIA's last semiannual forecast. In November, the group projected 2009 sales would decline 5.6% to $246.7 billion, then grow 7.4% in 2010 and 7.5% in 2011.

However, the SIA is referring to the predicted 2010 recovery in annualized terms. Month-by-month, the rebound may have already begun. Earlier in the week, the trade group said worldwide sales of semiconductors rose a better-than-expected 6.4% sequentially in April, driven by moderate improvements in a number of end-demand drivers and inventory replenishment. March was up over February as well.

In 2008, the industry totaled sales of $261.2 billion, up 2.2% from 2007.
SAN JOSE, CA – Tessera Technologies Inc. and Motorola Inc. have entered into a pre-negotiated license agreement.
 
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TEMPE, AZ -- The nation's top indicator of purchasing activity rose 2.7 points in May to its highest level in eight months as the manufacturing sector slowly emerges from the recession bottom.

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