Market News

WASHINGTON -- Calling innovation "endangered," the Consumer Electronics Association announced a plan to organize widespread Congressional lobbying to advance the interests of new technology.

The so-called Innovation Movement will channel the interests of tech companies and enthusiasts to prod legislators for bills that promote American jobs and spur new technology, CEA said. 

"Innovation is vital to the American economy and innovation is the brightest hope for our future. We hope to activate, energize and educate our Innovation Movement members to speak out and speak up on legislation and policies that are not working for America," CEA said. "Joining the movement will allow the participants to support legislation that will grow the tech industry and bring our put our economy back on track."

The CEA formulated six "principles" of the movement in a so-called Innovation Checklist and is urging Congress to use the criteria when evaluating every legislative proposal. The checklist asks:

  • Does this bill create American jobs?
  • Does this bill spur new technology?
  • Does this bill encourage the best and brightest to come to the US?
  • Does this bill reward innovation and investment?
  • Does this bill promote exports?
  • Does this bill foster productivity and energy efficiency?

CEA claims 14,000 people have signed on so far. Members will be provided information on how to make their voices heard on legislation that may impact the CE industry, including special alerts on specific congressional representatives.

CEA is a trade group with some 2,000 member companies.

PEMBROKE, BERMUDA – Tyco Electronics has adjusted its third-quarter guidance for the better.
 
For the quarter ending June 26, the company forecasts sales of $2.45 billion to $2.55 billion, compared to the previous $2.35 billion to $2.45 billion. Tyco cites a stronger dollar, project revenue from its Undersea-Telecommunications segment and an increase in electronic component sales for the improvement. 
 
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TOKYO -- Japanese semiconductor equipment makers reported orders jumped 22% in May. It was the third straight month of growth, suggesting demand is returning.

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SINGAPORE -- Singapore’s electronics shipments fell 21.8% year-over-year earlier in May, to $2.7 billion.
It was the 28th consecutive monthly drop for the sector. Shipments were down 25.6% in April.

However, according to the nation's purchasing managers’ index, manufacturing grew in May for the first time in nine months. Overall, Singapore’s exports, while still falling, narrowed their year-over-year losses in May, suggesting to some analysts that the recession is easing.

HONG KONG -- Eighty-nine percent of mainland China's electronics component distributors expect revenue to grow in 2009, forecasting an average increase of 13%; while 55% of mainland China electronics manufacturers surveyed said the economic downturn has had little or no impact on their business.

The results were revealed in the ninth Annual Electronic Components Distributor Survey conducted by Global Sources.

This year, the firm asked 326 senior managers who are working for components distributors and 1,243 senior corporate, purchasing or procurement managers from electronics manufacturing companies operating in mainland China about their current challenges and plans for the future.

Mainland China manufacturers well equipped to cope with change

The survey revealed that 55% of manufacturers want to work with local distributors in the coming months, an increase of 18% compared to last year. However, 32% still prefer to work with Hong Kong, Taiwanese and international distributors. Other results include:

  • Manufacturers order 54% of their components directly from distributors.
  • Seventy-eight percent of manufacturers plan to either increase their purchases from distributors, or keep them the same, this year.
  • They are selecting distributors based on availability of onsite engineering support (48%), reference design (45%), test service (30%) and development tools (28%).

Mainland China distributors are also shifting their strategy to grow their business. An increasing number of them are now focusing on serving medium- and small-scale manufacturers rather than larger-scale outfits.

Distributors have also implemented a number of steps to ensure the quality of their components in reaction to the demands from both the mainland China and global consumer market. These include strict supplier approval; employee training; third-party testing; purchase testing equipment and ISO certification.

ARLINGTON, VA -- The 30-day average orders of electronics components leveled in May, offering hope for the coming months.

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