BANNOCKBURN, IL – A survey of electronics supply chain companies reveals more than 40% say customers have changed sourcing from Asia to North America or Europe in the past two years.
The IPC survey of executives and marketing professionals at EMS, PCB and suppliers in North America and Europe was conducted in November, and 50 companies responded. According to IPC, 42% of respondents have seen some level of program migration back to the West.
“There has been some speculation recently within the electronic interconnect industry that some customers may be changing their sourcing patterns and shifting some business back to North America and Europe from Asia for a variety of reasons,” said Sharon Starr, director of market research. “The goal of the survey was to confirm this trend, estimate the financial impact on the industry and identify the drivers of the trend. Although the intent was not to produce statistically significant data, we definitely saw some evidence of regional shifts.”
The respondents estimated an average of 2.5% growth in their 2007 and 2008 business was attributable to this trend. Quality concerns was the issue cited most often as the primary driver of this trend. Other key contributors were transportation costs, currency exchange rates, long supply lines and communication difficulties, says IPC.
ARLINGTON, VA -- Electronic component orders fell in January for the third consecutive month, according to the monthly index compiled by the Electronic Components Association (ECA). The 12-month average, comparing this year’s results to last year’s, continued a descent that began last summer.
“We might just have to get used to words such as ‘downslide’ for the next several months,” says Bob Willis, ECA president. “Electronic components are the building blocks for all things electronic, so our market is inextricably linked to the economy and spending. Like everyone else, electronic component manufacturers are looking to stay as healthy as possible until better times arrive.”
PALO ALTO – Agilent’s first-quarter revenues fell 16% year-over-year to $1.16 billion. Operating profits were down $69 million.
Semiconductor and board test sales were down 49% from last year to $45 million. Electronic measurement was down 23%. Semiconductor equipment and board test orders were $32 million, down 66% from last year.
ANAHEIM, CA – DDi Corp. reported fourth-quarter net sales of $43 million, down 5% from a year ago and 13% sequentially. The PWB fabricator reported a GAAP net loss of $37.3 million, owing primarily to a large non-cash charge to writeoff the change in market capitalization.
ATLANTA – Registration is now open for PCB East 2009, scheduled for April 27 - May 1 at the Westin Waltham-Boston in Waltham, MA. Held annually on the East Coast since 1996, PCB East provides show attendees – PCB engineers, designers, fabricators and managers – with the most targeted conference in the PCB design industry.
WASHINGTON, DC – Intel today announced plans to spend $7 billion over the next two years to build advanced manufacturing facilities in the US. The investment funds deployment of Intel's 32nm manufacturing technology and represents Intel's largest-ever investment for a new manufacturing process.
Intel's investment will be made at existing manufacturing sites in Oregon, Arizona and New Mexico and will support approximately 7,000 high-wage, high-skill jobs at those locations -- part of a total Intel workforce of more than 45,000 in the US. Intel, while generating more than 75% of its sales overseas, carries out roughly 75% of its semiconductor manufacturing in the US, which is also where it spends three-quarters of its investments, the company said
In a speech this morning at the Economic Club of Washington, DC, Intel president and CEO Paul Otellini said, "We're investing in America to keep Intel and our nation at the forefront of innovation. These manufacturing facilities will produce the most advanced computing technology in the world. The chips will become the basic building blocks of the digital world, generating economic returns far beyond our industry."
