Author Archives: Mike

About Mike

Mike Buetow is president of the Printed Circuit Engineering Association (pcea.net). He previously was editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He spent 21 years as vice president and editorial director of UP Media Group, for which he oversaw all editorial and production aspects. He has more than 30 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow

TTM: Time to Military?

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TTM is taking no chances with its core defense market.

The fabricator, one of the world’s five largest, has added three directors, all of whom have extensive ties to the US military’s procurement arm.

Dr. Jacques S. Gansler, now at the University of Maryland, was recently Under Secretary of Defense for Acquisition, Technology and Logistics at the DoD. Retired Lt. General Ronald W. Iverson is CEO of LGS Innovations, an Alcatel-Lucent subsidiary that serves the US government. And Dr. Dov S. Zakheim is senior vice president of Booz Allen Hamilton, where he heads the firm’s global defense business, and a former Under Secretary of Defense (Comptroller) and DoD CFO.

Aerospace and defense make up an estimated 21% of TTM’s overall sales, down from about 45% in 2009 due to the acquisition of Meadville’s PCB unit, which tilted the overall mix toward networking. Still, short of naming Defense Secretary Robert Gates to its board, TTM’s latest moves should ensure the company remains the leading supplier of circuit boards to the DoD for years to come.

Just Who is Hon Hai?

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Curious as to just who is Hon Hai, better known as Foxconn? Here is a list of its holdings in China, along with a synopsis of what the unit does:

  • Fu Ding Precision Component (Shenzhen) Co., Ltd. Manufacturing and marketing of computer components, computers
  • Champ Tech Optical (Foshan) Corporation    Optical lens
  • Hongfujin Precision Industry (Wuhan) Co., Ltd.       Manufacturing and marketing of molds and tooling
  • Foxconn Precision Component (Shenzhen) Co., Ltd.            Manufacturing and marketing of computer cases
  • HongHengSheng Electronical Technology (Huaian) Co., Ltd.          Printed circuit board products manufacturing and sales
  • Fukui Precision Component (ShenZhen) Co., Ltd.    Printed circuit board products manufacturing and sales
  • Futaijing Precision Electronics (Beijing) Co., Ltd.     Manufacturing and marketing of computer components, computers
  • System Integration Electronics (Hangzhou) Co.,Ltd.            Electronic components, network
  • Hongfujin Precision Electronics (Chongqing) Co., Ltd.        Computer chassis and metal stamping parts
  • FU-SIN Precision Component (Huaian) Ltd. Manufacturing and marketing of computer components, computers
  • Fu Jin Shun Precision Industry (Shenzhen) Co., Ltd Manufacturing and marketing of computer components, computers
  • Fuhuajie Industrial (Shenzhen) Co., Ltd.       Manufacturing and marketing of computer components, computers
  • Foxconn Precision Electronics (Lang Fang) Co., Ltd.           Manufacturing and marketing of handset and components
  • Ambit Microsystems (Zhong Shan) Corporation        Manufacturing and marketing of computer components, computers
  • Foxconn Shenyang Precision Industry Co.,Ltd.        Numeric control machine tool manufacturing
  • Honyeh Precision Component (Kunshan) Co., Ltd    Manufacturing and marketing of computer components, computers
  • Foxconn Goodfield Precision Industry (Dalian) Co., Ltd.    Manufacturing and marketing of auto part related product
  • Foxconn (Tian Jin) Technology Co., Ltd.       Manufacturing and marketing of handset component product
  • Shenzhen Fu Tai Hong Precision Industry Co., Ltd. Manufacturing and marketing of computer cases
  • Yantai Zheng Yi Precision Electronics Co., Ltd.       Manufacturing and marketing of monitoring device
  • Fulin Electronical Technology (Changshu) Co.,Ltd.  Manufacturing and marketing of computer components, computers
  • Fuyang Electronical Technology (Changshu) Co.,Ltd.          Manufacturing and marketing of computer components, computers
  • Fu Tai Kang Electronice Development (YanTai) Co.,Ltd.     Marketing of computer chassis and metal stamping parts
  • Hongfujin Precision Industry (Qinhuangdao) Co.,Ltd.         Connector related business
  • Hong Tai Precision Industrial (Hang Zhou)Co., Ltd. Router and related modules and components
  • Hong Fu Jin Precision Electronics (YanTai) Co., Ltd.           Manufacturing and marketing of computer components, computers
  • Honxun Electrical Industry (Hangzhou) Co., Ltd      Manufacturing and marketing of computer cases
  • Alibaba (China) Software Co., Ltd.   Software and technology services
  • Futaikang Precision Component (Shenzhen) Co., Ltd           Manufacturing and marketing of computer components, computers
  • Hongzhun Precision Tooling (Shenzhen) Co., Ltd.    Manufacturing and marketing of computer cases
  • Antec Auto Electric System (Kunshan) Co.   Auto electronics and auto wire harness
  • Amworld Microsystems (shanghai) Ltd.        Manufacturing and marketing of data networking products
  • Hongqunsheng Precision Electronics (Yingkou) Co., Ltd.    Printed circuit board products manufacturing and sales
  • Hongqisheng Precision Electronics (Qinhuangdao) Co., Ltd.            Printed circuit board products manufacturing and sales
  • Amlink(Shanghai)Ltd.     Manufacturing and marketing of computer components, computers
  • Foxconn (Nanjing) Communications Co.,Ltd.           Manufacturing and marketing of handset and components
  • Kangzhun Precision Tooling (Kunshan)Co., Ltd.      Manufacturing and marketing of computer components, computers
  • Fuyu Electronical Technology (Huaian) Co., Ltd.     Manufacturing and marketing of computer components, computers
  • Fu Meng Electronical Technology (Huaian) C.., Ltd.            Manufacturing and marketing of connector and cable products
  • Fuzhun Precision Tooling (Huaian) Co., Ltd. Manufacturing and marketing of computer components, computers
  • CJ Electric Systems Co., Ltd. Auto electronics and auto wire harness
  • Dong Guan Hong Song Precision Component Co., Ltd.       Manufacturing and marketing of computer components, computers
  • Fu Xiang Precision Industrial (Kunshan)Co., Ltd.     Manufacturing and marketing of computer components, computers
  • Foxconn Precision Electrons (Yantai) Co., Ltd.         Manufacturing and marketing of computer components, computers
  • Alibaba (China) Technology Co., Ltd.           Software and technology services
  • Foxconn (Nanjing) Software Co., Ltd.          Computer Software, hardware and other digital product
  • Alibaba (Shanghai) Technology Co., Ltd.      Software and technology services
  • Foxconn Precision Component (Beijing) Co., Ltd.    Manufacturing of telecommunication cases
  • Fujin Precision Industry (Shenzhen) Co., Ltd.           Manufacturing of telecommunication cases
  • Dong Guan Eson Precision Tooling Co., Ltd.            Manufacturing and marketing of telecommunication cases
  • Kunshan Eson Precision Engineering Co.,Ltd.          Manufacturing and marketing of electronic components
  • Wuxi XinGuan Metal Science & Technology Co.,Ltd.          Manufacturing and marketing of plastic mould
  • Kunshan Eson Technology Inc.          Manufacturing and marketing of computer components, computer
  • Hongfuqiang Precision Electronics (Yingkou) Co.,Ltd.        Manufacturing and marketing of computer components, computers
  • Fuding Electronical Technology (Jiashan) Co.,Ltd    Manufacturing and marketing of computer components, computers
  • Futaije Science & Technology Development(Shenzhen) Co., Ltd.    Manufacturing and design of computer components
  • Fuhon Precision Component (Shenzhen) Co., Ltd.    Manufacturing and design of computer components
  • Beijing Sinya Online Information Technology Co., Ltd.       Software and technology services
  • MediaMarkt (Shanghai) Commercial & Trading Company Limited  3C
  • Ambit Microsystems (Shanghai) Ltd. Manufacturing and marketing of computer components, computers
  • Hong Fu Tai Tooling (Yan Tai) Co., Ltd.       Components of automatic data process equipment
  • Yantai Jiray Electronic Technology Co., Ltd.            Manufacturing and marketing of monitoring device
  • Competition Media Technology (Shenzhen) Co., Ltd.          Pick up head
  • Foxconn Electronic Industrial Development (Kunshan) Co., Ltd.    Manufacturing and marketing of computers
  • Foxconn (Tian Jin)Precision Industry Co., Ltd.         Manufacturing and marketing of computer components, computers
  • Premier Image Technology (China) Limited  Camera Production
  • Foxconn Precision Electronics (Tai Yuan) Co., Ltd.  Manufacturing and marketing of computer components, computers
  • Foxconn Computer Connectors (Kunshan) Co., Ltd.            Manufacturing of connectors
  • GDS Software (Shenzhen) Co., Ltd. Computer Software, hardware and other digital product
  • Futaihua Industry (Shenzhen) Co., Ltd.         Manufacturing and marketing of computer components, computers
  • Liuzhou Antec Fangsheng Electric System Co., Ltd.            Auto Electronics and Auto Wire harness
  • FuHonYang Precision Industrial (Shenzhen) Co., Ltd.         Manufacturing and marketing of computer components, computers
  • HonFuJin Precision Industry (HuiZhou) Co., Ltd.    Manufacturing and marketing of computer
  • Fugion Material Technology (Shenzhen) Limited      Managing, Developing and manufacturing advanced
  • Hongzhun Precision Tooling (Kunshan) Co ., Ltd     Manufacturing and marketing of computer components, computers
  • Foxconn (Qin Huang Dao) Limited   backlight and antenna components
  • HongHuaSheng Precision Electronics (YanTai) Co., Ltd.     Printed circuit board products manufacturing and sales
  • Hong Fujin Precision Industrial (Shenzhen) Co., Ltd.           Manufacturing and marketing of computer components, computers
  • Guangzhou OED Technologies Co., Ltd.      Manufacturing and marketing of flexible displays

And outside of China:

  • Ambit International Ltd. British Virgin Islands
  • Foxconn (Far East) Ltd.  Cayman Islands
  • Foxconn Holding Ltd. British Virgin Islands
  • Foxconn SA B.V. Netherlands
  • Image & Vision Investment Corp. British Virgin Islands
  • Margini Holdings Limited British Virgin Islands
  • ?????(??)???? Hong Kong

No wonder it’s so hard to know just what the world’s largest EMS company is up to.

Outlining the Future

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I will never forget so many weekends of my youth spent holding my eyelids open with my thumbs while my good friend Dieter Bergman lectured about the need for a new data transfer format. It made me the man I am today … tired, grumpy and frazzled …

An email yesterday from one of my old cohorts on those committees reminded of those happy times. Dino Ditta, whom many readers will remember as the founder of Router Solutions, has spent the past year working on a website designed to be an open community-based portal for creating, managing and sharing accurate 2D and 3D component package models.

“The goal,” he tells me, “is to have thousands of users generating the models using the templates we provide, and then let the global user community share the work product.”

The project is called WikiComponents.com. I checked it out and say it holds promise. Some of the more interesting features include a user rating system (users can give a thumbs up or down to a particular part outline, and — and this is key — all thumbs down must include a comment as to why the rating was given), and a built-in peer review will spur changes to poorly conceived ones.

Dino says he will work with IPC, Jedec and others on component outline and land pattern standards. Given the up-and-down history of the tool providers and standards organizations in keeping up with parts libraries, this is definitely worth a look.

Shifting Tide

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While the results of the latest Riverwood OEM survey are eye-opening, I want to focus on one data point in particular: the percentage of OEMs that are hiring staff near their EMS providers.

Per the study, the results of which were released today, 63.6% of survey respondents say that they are likely to hire remote operations staff near their EMS provider. That’s up 34.2 points (not percent) from a year ago.

Riverwood did not indicate reasons for the switch, but some can be inferred, including OEMs are demanding more control and insight over EMS operations, and OEMs are staffing up after severe cuts in 2009.

But the bottom line, as always, is the bottom line. Outsourcing assembly was supposed to reap substantial tangible benefits, not the least of which was lower fixed costs (i.e., head count). As we’ve noted before, in many cases employees formerly known as process engineers have now become supplier engineers — but they are still at the OEM. That development (or lack thereof) does not suggest a high degree of confidence in a lights-out supply chain.

Which once again begs the question, has outsourcing been worth it?

Jabil’s Turn in the Hot Seat

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You can forgive — if only slightly — Terry Gou if he is smiling today.

One of the chairman of Foxconn’s main competitors, Jabil, stands accused today of creating and maintaining a what can best be described as a cruel environment for its 6,000-some workers in Guangzhou.

While no suicides have been reported — unlike the dozen at Foxconn’s Shenzhen plant this year alone — the accusations, by the very official-sounding National Labor Committee, a US-based NGO, are damning.

In a less-than-stellar initial response, Jabil took issue with the report’s summary, saying , “A quick look over this lengthy summary, written by a ‘respected Chinese worker rights activist and scholar, who must remain anonymous,’ paints a very accusatory but not very accurate picture.” Jabil’s response is too cute by half: the full report was authored by NLC director Charles Kernaghan, based on undercover investigations in China. Only the  three-paragraph preface, per the report, is credited to the anonymous Chinese scholar.

Regardless of whether the charges are warranted, Jabil will certainly have to answer for itself. For the workers’ sake, let’s hope they are exaggerated. But if they aren’t, Jabil faces the same disdain the world holds for the likes of Terry Guo — and deservedly so.

Mentor’s Poison Pill

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Mentor isn’t going to let Carl Icahn break up the company without a fight.

That’s my take, given the EDA software company’s latest maneuver. Mentor has adopted something called a “Shareholder Rights Plan,” in which it will grant each of its shareholders the opportunity to purchase one discounted share for each share of common stock currently held. This option to buy kicks in if a person, alone or as part of a group effort, accumulates 15% or more of Mentor stock (or announces an offer to do so).

The move “enables the board to protect the company and to allow all of the shareholders to realize the long-term value of their investment,” the firm said in a press release.

This is a variation of the traditional poison pill defense some companies take when they are perceived to be in play by unwanted investors. The idea is to either slow down the third party, giving the board time to find a more desirable buyer, or to make it so expensive to acquire a controlling stake in the company, the third party will give up.

I, for one, am glad to see Mentor taking this step.

The Raider

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Look out, Mentor.

Noted investor/corporate raider Carl Icahn keeps upping his stake in the EDA company. At last report, it was 9.5% (that’s as of Tuesday), up from 6.86% a month ago. Reports hold that Icahn plans “to discuss ways to maximize shareholder value with the Mentor management.”

Even though the company’s stock is up more than 75% over the past year, Icahn’s interest can’t be comforting news to Mentor. Indeed, it may be that Icahn’s buying and holding (coupled with similar moves by those looking to draft off his moves) is helping boost the price.

In his 10+ years at the helm of Mentor, chairman and CEO Wally Rhines has been a good steward, hands-on and clearly vested in the long-term outcome of the company and the industry. Multi-billionaire raiders like Icahn might be able to “unlock” a little more wealth — but for whom, and at what cost?

Seeing Big Possibilities

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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?