Printed Circuit Design & Fab - December 2008 - (Page 8)

AROUND thE world Weak Q3 for Mobile Phone Sales FRAMINGHAM, MA – According to IDC, Rigid-Flex PCB Demand on the Rise the worldwide mobile phone handset shipments are down compared to previous quarters in 2008, and this signals concern for Q4 sales – when mobile phones typically reach peak sales for the year. Mobile phone manufacturers shipped a total of 299.0 million handsets in Q3 2008, up only 3.2% YoY and down 0.4% compared to Q2 2008. Historically, Q3 experiences a ramp-up in sales in preparation for the holiday season. In previous years, this ramp up has created an increase in sales of 20% or more in the third quarter. The market for smartphones, a subset of the overall mobile device market, did post strong gains for the quarter and continues to dominate the growth in this sector. TAIPEI, TAIWAN – Although third-quarter sales of high-density interconnect (HDI) boards did not meet expectations, rigid-flex PCBs performed much better. Demand for high-end handsets and consumer electronics spurred sales. Market experts are predicting further increases for 2009. In September, Compeq Manufacturing reported sales of rigid-flex PCBs at NT$300 to $400 million (US$9.13 million to $12.17 million). This is an increase over July and August figures of NT$100 to $200 million (US$3.04 to $6.08 million). Rigid-flex PCB sales account for 12% to 15% of total sales for Unitech Printed Circuit Board. Although the company is still in the trial period for its design, it expects to increase its workforce and equipment during the fourth quarter. Unimicron Technology turned a third-quarter profit of NT$200 million (US$6.08 million), an increase over second-quarter results of NT$50 million (US$1.5 million). The company predicts even better results in 2009 and plans to expand its capacity. Communication equipment Sales Decline LOS ALTOS, CA – Although capital investment outlays will slow, the communications equipment industry will survive the economic downturn in reasonable shape, says Henderson Ventures. Worldwide equipment production will slow from a 6.8% rate in 2007 to a 3.2% pace this year, according to the research firm. A further deceleration will take growth rates to 2.7% next year before rebounding to 9.6% in 2010. China is expected to achieve a solid 9.6% gain this year. Even so, that pales before the 19.8% burst chalked up during 2007, says Henderson. Handset shipments are slated to decelerate sharply, as the economic environment encourages cellphone owners to postpone the purchase of upgraded handsets. Shipment growth is predicted to decelerate from 15.1% in 2007 to 7.8% in 2008, decreasing to only 3.9% for 2009. And given the increased emphasis on developing markets, handset revenues are forecasted to be stagnant next year. The ongoing financial crisis is expected to be resolved by 2010, rejuvenating economic growth, and a new replacement cycle will create a 9.5% unit gain that year. E/CIT Program Funding Jumps BANNOCKBURN, IL – The Emerging/ Critical Interconnection Technology program will receive $2 million in federal appropriations for 2009, up 60% year-over-year. The E/CIT program was created in 2002 to strengthen the Department of Defense and the US PCB industry. Operated by Naval Surface Warfare Center, Crane (IN) Division, E/CIT is designed to ensure the military has the latest technical capabilities, processes and equipment to support war-fighter requirements. The program facilitates solutions to current military problems and evaluates leading-edge design and manufacturing technologies for future military and commercial requirements. IPC is among the groups that has advocated for funds for the program. MFLEX Hits Record High ANAHEIM, CA – Multi-Fineline Electronix, Inc. (MFLEX) net sales for fiscal Q4 ending September 30, 2008 was $213.1 million, up 27.8% from net sales of $166.7 million in fiscal Q4 2007. The gross margin for fiscal Q4 2008 increased to 16.1% from 8.5% in fiscal Q4 2007. A favorable product mix and improved yields are credited with enhancing margin performance. For the fiscal year ending September 30, 2008, net sales increased 43.4% to $728.8 million from $508.1 million during fiscal 2007. Net income in fiscal 2008 increased to $40.5 million, or $1.59 per diluted share, compared to net income of $3.0 million, or $0.12 per diluted share, in fiscal 2007. 8 printEd CirCuit dESign & fAB DECEMBER 2008

Table of Contents Feed for the Digital Edition of Printed Circuit Design & Fab - December 2008

Printed Circuit Design & Fab - December 2008 Contents Our Line Market Watch Around the World Happenings ROI Global Sourcing EMC for the Real World Interconnect Strategies On the Forefront Final Finish Forum Test and Inspection Electronic System Design Data Management 101 Designers Take on Technology Challenges in 2008 PCB Signal Integrity, Power Integrity and EMC Challenges What’s in a Name? Ad Index PCB Dielectric Materials for High-Speed Applications Off the Shelf Marketplace BGA Bulletin

Printed Circuit Design & Fab - December 2008

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