SAN JOSE – The Semiconductor Industry Association today said that proposed changes to international tax rules such as weakening the deferral of US income taxes on the earnings of foreign subsidiaries of US companies could actually encourage the transfer of manufacturing and research and design activities offshore.
“While we applaud the Administration’s goal of encouraging investment in R&D and manufacturing operations in the United States, as evidenced by its proposal to make the research credit permanent, we are very concerned that the international tax proposals would have exactly the opposite result,” said SIA president George Scalise in a statement. “Nearly all of the countries with which America competes for investment either defer taxes on foreign earnings or do not tax them at all. Changes such as weakening the deferral of such taxes would place US companies with foreign subsidiaries at a competitive disadvantage.”
SIA noted that at present, the US does not tax the income generated by offshore subsidiaries of US companies until those earnings have been paid to the parent company, usually as a cash dividend. Deferral of such taxes helps to level the playing field for US companies in the global arena.
“Semiconductors are America’s second-largest export product,” Scalise said. “When American companies compete successfully in international markets, they also expand their domestic operations and create jobs in America. There are many other, better alternatives for encouraging job-creating investments in the US. Making it more expensive for US companies to compete in foreign markets is not one of them. The tax code is very complex and should not be changed in isolation, as the Administration has proposed."
SINGAPORE -- Singapore's electronics industry expanded in April for the first in six months, the Singapore Institute of Purchasing & Materials Management said.
The nation's electronics manufacturing index was 51.6, up 2.8 points from March, the agency said. Since February, electronics index has gained 7.8 points.
A reading above 50 is considered a sign of expansion.
Electronics makes up about 33% of the city-state's manufacturing output.
TEMPE, AZ -- US manufacturing activity slipped in April for the 15th consecutive month, but the rate of new orders jumped six points to its highest level since September, according to the latest poll of the nation's executives.
After six consecutive months below the 40%, mark, the PMI index of manufacturing activity jumped nearly four points to 40.1%. A PMI over 41.2%, over time, generally indicates an expansion of the overall economy, said the Institute for Supply Management, which tracks the data.
The New Orders index hit 47.2%, the with Computer & Electronic Products segment reporting growth. The Customers’ Inventories Index fell, a sign that stocks are being cut. The pricing index fell as well, meaning manufacturers are paying less for goods and services.
ISM spokesman Norbert Ore said, “The decline in the manufacturing sector continues to moderate. The PMI shows a significant improvement. While this is a big step forward, there is still a large gap that must be closed before manufacturing begins to grow once again."
The overall economy contracted for the seventh consecutive month.
SMYRNA, GA –PCB East opened its one-day exhibition last week in the Boston suburbs to an enthusiastic cross-section of electronics industry professionals.
TAIPEI, TAIWAN – The demand for optoelectronic PCBs is increasing, thanks to China, Europe and the US. Taiwan PCB Techvest (TPT), Dynamic Electronics and Tripod Technology are seeing a rise in orders, reports DigiTimes. TPT’s plants in China and Taiwan are running at full capacity, and March revenues climbed 40% from February. Order visibility has extended to June, and TPT is forecast to see second-quarter revenue up 20% sequentially, according to the company. Dynamic also reports full capacity at its plants in China and Taiwan, with a 90% utilization rate in eastern China. The company expects April revenues to reach over NT$1 billion (US$30.23 million). Tripod predicts the third quarter will see a recovery in the PCB industry, as Europe and North American markets begin to build inventory. Optoelectronic and notebook PCBs have a healthy momentum for growth, according to the company, and demand for HDI boards, HDDs and boards for DRAM modules are showing signs of improvement.
ROGERS, CT – Rogers Corp. reported first-quarter revenue fell 33% from last year to $65.5 million on inventory takedowns and end market declines. The amount includes $2.8 million in severance charges and other one-time charges totaling nearly $2.9 million.
