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

AROUND THE WORLD EDITED BY KATHY NARGI-TOTH CHIP SALES DIP MARGIN SQUEEZE Gartner Reduces Chip Forecasts SAN JOSE – Gartner Inc. lowered its 2007 semiconductor forecast to 2.9%, down from 3.9%. The research firm also tempered its estimates for 2008, saying growth will hit 6.2%, versus earlier predictions of 8.2%. However, Gartner raised its 2009 forecast to 8.5% growth, up from 6.1%. Gartner projects a 4.8% CAGR for semiconductors from 2006 to 2011. Gartner’s preliminary 2007 figures showed Toshiba, Qualcomm and Hynix as top performers and Advanced Micro Devices, Freescale and IBM coming in at the bottom. Toshiba was the fastest-growing chip company this year, rising 27.8%, says Gartner. At the bottom, AMD fell 22.4%, while Intel rose 8.2%. IBM had a difficult year after surging in the double-digits last year, Lewis said. Titan’s Losses Widen Despite Record Sales RICHARDSON, TX – Titan Global Holdings on Friday reported and net operating losses of $23.8 million on record revenues of $111 million for 2007. The net loss widened from a $5.1 million loss last year. Titan reported $9.3 million in operating cash flow during fiscal 2007, a $9.6 million increase from cash operations over 2006. Titan’s PCB operations lost $10.5 million on revenues of $23.6 million, up 15% from the prior year. Net operating losses for the division include $8.7 million of non-cash derivative expenses incurred during fiscal 2007. A year ago, the division lost $5.4 million. Its top 10 customers accounted for 45% of sales in its Electronics group. The unit has 185 full-time employees, 159 of which are involved in manufacturing and engineering. South China Attraction The HKPCA Show’s New Location Draws Well SHENZHEN – The HKPCA and IPC Show drew 13,500 visitors on its opening day, organizers said. An additional 15,500 visitors attended on Thursday, the second day of the show. On Friday the crowds had noticeably thinned. Organizers where anticipating 35,000 visitors would attend the trade show over its three days. The show, dubbed the 2007 International Printed Circuit and Electronics Assembly Fair, moved this year from Dongguan to the new Shenzhen Convention & Exhibition Center. The move, according to show organizers, provided the participants with more room to handle the expanding number of exhibitors, up some 98% since the show’s 2002 launch. The location also provides a more central location for the south China region. The 435 exhibitors were sorted by category: PCB materials, PCB equipment and PCB fabricators. Represented are many of the top 100 PCB companies including Topsearch, Merix, Viasystems, Elek and Eltek, Techwise, and Meadville. There where a number of companies, promoting equipment such as drilling machines and plating lines – manufactured locally in China as well as a few supplying process materials such as plating chemistry, drill backer and entry and solder mask also from local manufacturing sources. The majority of companies and products on exhibit however were from international companies, either self represented or represented through local distributors. Rohm and Haas Updates Sales Guidance PHILADELPHIA – Rohm and Haas today updated its expected 2007 guidance and outlook for 2008.The company expects 2007 sales of approximately $8.8 billion, with growth in the fourth quarter of approximately 9 to 10% over the prior-year period. Earnings will be adversely impacted by the price of raw materials, which increased $60 million over the same period in 2006. The company has increased prices to cover these added raw material costs, and expects to have new pricing in place to cover further cost escalations by the beginning of first quarter 2008.For the full-year 2008, the company forecasts a sales increase of approximately 14%. “Our 2008 outlook is positive,” notes Raj L. Gupta, president and CEO. GROWTH COOL DOWN Mentor’s Q3 Sales Drop 2.2% YOY WILSONVILLE, OR – Mentor Graphics reported third-quarter revenue fell 2.2% to $186.3 million. The company swung to a net loss of $9.2 million, from earnings of $2.5 million last year. The company reports that compared to the prior year, bookings were up 10% overall. Year-on-year bookings for the Pacific Rim were up 35%, up 25% for North America, 5% for Japan, and down 15% for Europe. Contract renewals among the company’s 10 largest orders increased 50% over the corresponding prior contract. President Gregory K. Hinckley said, “We see mixed economic signals. We see positive forward indicators like venture company funding to fabless semiconductor startups up sharply in the third quarter to the highest level since 2001, our consulting bookings up 50%, training bookings up 95% and new customer logos up 10%. Nonetheless, our actual results highly depend upon the condition of the U.S. economy where risks in recent weeks seem to be growing. If the U.S. economy slows in the fourth quarter, our ability to meet guidance will be challenged.” JANUARY 2008 8 PRINTED CIRCUIT DESIGN & FAB

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

Printed Circuit Design & Fab - January 2008 Contents Our Line Market Watch Around the World Happenings ROI PTH Reliability: Designing to Improve PTH Reliability EMC for the Real World PTH Reliability: The Survival and Long-Term Reliability of Lead-Free PCBs iNEMI's Emerging Technologies: Research Priorities for the Electronics Industry Printed Circuit Design & Fab Annual Buyers Guide Special Suppliers Section Guide to Products and Services Off the Shelf: Designcon Preview Marketplace Ad Index BGA Bulletin

Printed Circuit Design & Fab - January 2008

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