Foxconn Moves Intriguing

There is a lot of speculation regarding Apple’s stated intent to build a manufacturing site in the US. This is not a major move. Only 200 jobs will be created. I cannot help but wonder if this is related to Foxconn’s (Apple’s major supply-chain device manufacturer) recent offer to help train Americans in manufacturing technologies. Is there a greater strategy about to be implemented? Is it the precursor to a potentially much larger move as costs continue to rise in China? America is still the major market for Apple where new products are introduced. Do Tim Cook and Terry Gou have a larger strategic plan? As Sherlock might say to Watson, “Methinks a new game is afoot.”

The November contraction of the US manufacturing sector does not bode well for the domestic electronics industry. According to the Institute for Supply Management (ISM), the index declined to the lowest level in three years, as national factory activity fell to 49.5% in November from 51.7% in October. Expectations had been for a level of 51.3%. Levels below 50% indicate a contraction. These figures are reflected in recent IPC book-to-bill ratios. The news in Japan is also discouraging for that nation’s interconnect industries. The Japanese Ministry of Economy, Trade and Industry showed negative growth for the country’s electronic industry in September. Not only is board production dropping, but so are board prices. Panasonic and Sharp have lost market share and are experiencing heavy losses, according to DKN Research. JX Nippon Oil & Energy (a major metal and oil supplier) has decided to close its PV silicon wafer business due to extreme global price competition. Uncertainty seems to reign everywhere. Many strategists are now working on improving efficiencies, finding new markets, and a resumption of growth in 2013.

For Americans, too? More cooperative activities reducing redundancy is needed between the IPC and the EIPC.

The EIPC made following announcement on Dec. 3: The EIPC has made an effort to provide the latest information on Standards for PCBs from Japan. The 4th edition was released at the JPCA Show in June 2011. The EIPC is encouraging the specialists in the European Electronic Industry to learn the knowledge that has been accumulated by the Japan Electronics Packaging and Circuits Association (JPCA) and documented in the Standard on Device Embedded Substrate Terminology Reliability Test/Design Guide Edition 4.0- JPCA-EB01 (2011) The English version of the document is on stock at the EIPC office in Maastricht, The Netherlands.

Associations in Agreement

Taiwan’s Vice President Wu (tallest man, center of photo) welcomed visitors and took part in the ribbon-cutting ceremony for the TPCA Show held in conjunction with the IMPACT 2012 event in Taipei. Second from the right is IPC CEO and president John Mitchell.

The TPCA and the JPCA signed a Memorandum of Understanding at the Taipei Nangang Exhibition Center on Oct. 25 to highlight industrial cooperation in a practical and efficient way. The TPCA organized an Alliance Seminar held in conjunction with the endorsement. This followed the Advance Technology Forum alliance event of this past July. The activity is supported by Taiwan’s Economic Department. Approval of funding was announced after the signing.

IMPACT 2012 was jointly organized by IEEE CPMT-Taipei, iMAPS-Taiwan, ITRI and the TPCA, and co-organized by IDB-Ministry of Economic Affairs, I-Shou University, NanKang IC Design Incubation Center. SMTA, and TTMA. IMPACT (International Microsystems, Packagiing, Assembly and Circuits Technology Conference) attracted 190 papers from 14 countries.

The TPCA held a special breakfast presentation in which an update on the industry in Japan (PCB domestic production down 45+% from its peak in 2007 as offshore manufacturing increased) by Dr. Hayao Nakahara of NTI and the industry status in Thailand presented by Bancha Ongkosit, chairman and managing director of KCE Electronics. The latter stated that Thailand lacks supply chain infrastructure and that he no longer buys from the US. He pointed out the growth of automotive electronics, stating that virtually every major car company as set up there, and that Thailand exports about 3.5 million vehicles per year. He also stated that the growth of organic substrate replacement for ceramic based electronic circuits for vehicles will continue to increase rapidly.

America’s Interdyne Systems, a new fabrication equipment entry debuted its revolutionary new concept for the mechanical drilling of 75 micron holes. Taiwan Kong King (TKK) celebrated its 35th Anniversary at the show.

It’s a Collaborative World After All
Rumors persist that an announcement of a new collaborative activity between the IPC and iNEMI is imminent.

Lenovo, the world’s second largest PC producer, will start production of its Think brand notebooks in the US next year at its fulfillment center in North Carolina. Lenovo acquired IBM’s PC division (original producer of the Think PC) in 2005. Last month Lenovo announced the acquisition of Brazil’s PC maker Comercio de Component Electronicos.

Taiwan’s intelligence chief warned that one in every three Taiwanese companies based on the mainland are facing closure due to rapidly falling profits, according to Agence France-Presse in Taipei. Another 30% are also reported to be struggling on the mainland. Last year the island’s authorities approved 575 mainland investments totaling $13.1 billion.

Seeing Big Possibilities

A comment in old friend Dominique Numakura’s weekly newsletter prompted this audacious thought.

First, though, the background. Dominique has been detailing this year’s JPCA 2010 Show. As he points out in his June 13 issue, there was a new exhibition focused on large-scale electronics. In it, it was revealed how market demand for massive flat panel TVs, digital signage, photovoltaic cells and surface light sources creates concurrent demand for large PCBs. And he notes how, while suppliers like the trend — more volume sold — PCB makers aren’t necessarily embracing it because of the bigger boards require tooling changes and capital equipment investments.

But (!) — and this is where Dominique leaves off and audacious Mike comes in — big boards are what North America traditionally has done well. Could it be that this trend, primarily for industrial and certain consumer electronics — might actually spark a modest return to prominence for domestic fabricators?

Seeing Big Possibilities

A comment in old friend Dominique Numakura’s weekly newsletter prompted this audacious thought.

First, though, the background. Dominique has been detailing this year’s JPCA 2010 Show.  As he points out in his June 13 issue, there was a new exhibition focused on large-scale electronics. In it, it was revealed how market demand for massive flat panel TVs, digital signage, photovoltaic cells and surface light sources creates
concurrent demand for large PCBs. And he notes how, while suppliers like the trend — more volume sold — PCB makers aren’t necessarily embracing it because of the bigger boards require tooling changes and capital equipment investments. 

But (!) — and this is where Dominique leaves off and audacious Mike comes in — big boards are what North America traditionally has done well. Could it be that this trend, primarily for industrial and certain consumer electronics — might actually spark a modest return to prominence for domestic fabricators?