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

Should Flextronics Be Broken Up?

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The findings of a new study by Boston Consulting Group suggest that, over time, many tech companies are guilty of mission-creep, especially large ones.  And when that happens, those companies do not provide the shareholder value they could if they were leaner and more focused.

As part of its study, BCG analyzed total shareholder return, defined as the bottom-line return from capital gains and cash flow contribution. When it did so, it found little distinction between large-cap and small-cap companies:

“The clear takeaway is that regardless of company size, the more diverse the portfolio, the more difficult it is to generate high TSR—and the greater the set of management skills a company needs in order to handle that diversity. Companies must therefore be more deliberate and more explicit in rationalizing each element of their portfolio.”

BCG likens the strategy to the 3 R’s, in this case, Resize, Reform and Rejuvenate.  Marc Andreessen, the founder of Mosaic (later Netscape), put it this way: “If they’re more than 20 years old, then [companies will] probably benefit from being broken up, and many of them will probably be forced to break up if they don’t do it voluntarily.”

So for the EMS pseudo-conglomerates (Foxconn, Flextronics, Sanmina, etc.), what this means is there are arguments to be made — indeed, being made — that having bare boards, assemblies, design services, box build, ODM products, and a host of other products and services under a single umbrella is not an optimal  strategy.

There’s always been some debate over whether publicly traded EMS firms should be compared to other tech firms like Cisco and Microsoft or to traditional manufacturing companies (say, Caterpillar). It’s tough for a mid-size or larger contract manufacturer to attain repeated organic double-digit topline growth, and their margins are never going to be Wall Street pretty. Dumbing down the peer group makes sense.

But the bigger question being asked is whether their size is actually a hindrance. There must be a point at which that happens. Can the data analysis pinpoint that yet? And will market impatience make all of this moot?

 

The Best-Read PCD&F Articles in 2014

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As we did with CIRCUITS ASSEMBLY on Monday, here’s the list of the best-read new articles at PCDandF.com this year.

Leading the pack was IMI president Peter Bigelow, whose piece “When ‘Scaling Up’ Leads to ‘Belly Up’ ” received the most hits of his 10-year career as our columnist.

Next up was “A Two-Team Race?” Dr. Hayao Nakahara’s annual list of the largest PCB fabricators.

Coming in third was “Design for Reliability with Computer Modeling.” Dr. Randy Schueller and Cheryl Tulkoff, both with DfR Solutions, explained a new CAD tool that imports design files and quantitatively predicts product life.

They narrowly beat out “Magnification vs. Resolution in Visual Examination Specifications,” by Louis Hart of Compunetics and consultant Robert Simmons.

Coming in fifth was “Design Practices for Panelization and Depanelization,” by Phil Lerma, fabrication manager at NexLogic Technologies.

In sixth was Patrick Carrier’s “Maximizing Capacitor Effectiveness,” the first of multiple contributions from Mentor Graphics.

Next was “Power Electronics Packages with Embedded Components – Recent Trends and Developments,” by Lars Boettcher, Stefan Karaszkiewicz, Dionysios Manessis and Andreas Ostmann, who summed the work of a cross-industry team’s development and testing of a PCB-based embedded chip technology for an under-the-hood automotive application.

They were followed by “Qualification vs. First Article Inspection,” authored by Charles Hill and Karen Ebner of Raytheon.

The ninth most-read piece was “Effectively Managing PCB Design Constraints,” by John McMillan of Mentor Graphics.

And closing out the Top 10 was yet another Mentor offering, “Passing Electrical Signoff,” by Rod Dudzinski and Minoru Ishikawa.

The top written staff articles were “The One-Stop SoCal Shop,” senior editor Chelsey Drysdale’s look inside Murrietta Circuits, and “Good Values in Vegas,” our staff writeup of the 2014 IPC Apex Expo trade show.

We want to thank all our contributors from last year, and especially our loyal readers. Happy new year!

Is Sharing for Suckers?

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In my January editorial I asked, “Absent a government-industry technical agency, is the US shooting itself in the foot?” My comments were made in response to a former Bell Labs researcher who wrote that the US should consider reestablishing a government-supported technology research center.

A couple days ago in the Boston Globe, MIT science historian Loren Graham, an expert on Russian technology, points to how scientists there have led the way in everything from electric lights to fracking to the laser, none of which they were able to commercialize and thus take advantage of domestically.

Graham points to many reasons for this, specifically the Russians lack of a robust legal, political and economic system that would provide the necessary infrastructure and protections. But interestingly, he is convinced that individual mores are also to blame, saying, “In the Russian scientific community, the belief that business is dirty. And that you should not demean yourself by stepping out of the world of ideas.”

Fascinating.

Some in the US are concerned that the pressure of competition might actually stymie ideas. It seems our counterparts in Russia may share those concerns.

The Most-Read CIRCUITS ASSEMBLY Articles of 2014

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People often ask what our most popular topics are. There are many ways to slice and dice that, but what we’ve done the past few years is announced the Top 10 most-read articles of each year.

Number one in 2014 was “Advances in Fine-Pitch Printing Process Technology,” by Isaiah Smith of Speedline. It narrowly beat out “Circuits Disassembly: Materials Characterization and Failure Analysis,” by a quartet of Raytheon authors led by  John Wolfgong.

Coming in third was “Solder Joint Integrity Test for Finding Latent Defects in PCBs,” by Hiroshi Yamazaki of Hioki E.E. Corp.

The next four continued the technical bent:

4. “Shielding Effectiveness of Polyimide Tape during Rework,” by Adam Gaynor and Bob Wettermann of BEST.

5. “Advances in Concentration Monitoring and Closed-Loop Control,”by Umut Tosun and Axel Vargas of Zestron and Dr. Bryan Kim of Pressure Products.

6. “Automated Dispensing of 2 Component Materials in Electronics Assembly,” by Per Orla-Jensen of Nordson Asymtek.

7. “Printing Miniaturized Devices for the Automotive and Industrial Manufacturing Sectors,” by Clive Ashmore and Mark Whitmore of DEK (now ASM).

Rounding out the Top 10, coincidentally enough, the final three most-read articles were staff-written.

8. “Libra Industries Finds Its Balance,” Mike Buetow’s profile of the Ohio EMS company.

9. “ASM Takes Root in SMT,” in which Chelsey Drysdale detailed her visit to ASM’s European headquarters in Munich.

10. “A Muddled Recovery,” by Mike Buetow, our annual list of the Top 50 EMS Companies.

Interestingly enough, Nos. 5, 7 and 10 were cover stories in the print edition, while Nos. 3 and 6 were web-only. Given that more than 30,000 people see the print edition each month, it would be neat to know how the numbers would have changed if we were truly measuring apples to apples.

I will note that the data might also be skewed this year because of changes to our website. We launched the new CircuitsAssembly.com site late last spring, and in doing so reset the hit counters, not to mention introduced more splashy graphics that highlight the latest articles, so there’s a bias toward features that were published later in the year.

Tomorrow we will list the Top 10 most-read articles at PCDandF.com.

2014: The Year of the Deal

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Today brings to an end one of the most fascinating years of acquisitions since the crazy Internet era of late 1990s and 2000.

Unlike that episode, however, 2014 was a much more orderly state of affairs, and while some of the deals were not foreseen, the pricing (and volume) were within the realm of reason.

To recap:

  • TTM Technologies announced it would buy Viasystems, bringing to a close one of the most talked-about chapters in PCB industry history. The deal has cleared all but the last few regulatory hurdles, and is expected to close in mid 2015.
  • Rogers will buy Arlon, merging two leading suppliers of high-frequency laminate materials, and perhaps further complicating the supply chain for some of the smaller fabricators that lack the purchasing power of the major players, not to mention consolidating the RF/microwave product supply base for the US Defense Department. Given its shoulder shrug of TTM’s Chinese ownership, will the DoD even bat an eye over this, or will it be concerned enough to throw a wrench in the deal?
  • On the assembly side, ASM purchased DEK, which had been readied for sale since late 2011. The acquisition gives ASM top-of-the-line print-to-placement equipment offerings and positions it to compete with the major Japanese players such as Panasonic, Yamaha, Juki and Fuji.
  • Nordson acquired Dima Group, stretching its traditional dispensing and, later, AOI and test focus into SMT placement. Will Nordson keep the pick-and-place lines, or package that unit up and sell it?
  • Likewise, Amtech Systems has a pending agreement to buy BTU, stretching its semiconductor and solar production focus to include SMT reflow.
  • And just yesterday Kulicke and Soffa made a deal to buy Assembleon for $98 million in cash. While Assembleon had been expected to be acquired since Philips first put it on the block several years ago, K&S’s entry into the printed circuit board equipment space was unforeseen. Does it plan to continue to roll up other companies (Speedline?) and build a worthy competitor to ASM?

Most of the major deals that took place in 2014 happened on the supplier side. Does that presage a similar consolidation on the manufacturing end in 2015? Will some of the units long-rumored to be in play (Multek, Hitachi) finally be consummated? Will EMS, which took a breather in 2014 after major deals involving Natel (Epic), Benchmark (Suntron, CTS) the year before, catch a new spark?

We can’t wait to find out. Happy New Year!

 

Higher (Cost) Education

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Rensselaer Polytechnic is an outstanding academic institution, one that has minted more than a few of the stellar engineers working in the electronics industry today.

And you can count me among those who believe that if we want to ensure that top minds continue to consider careers in academia, the pay scale needs to reflect such emphasis.

But the news that Rensselaer’s president received more than $7.1 million in total pay in 2012, according to The Chronicle of Higher Education’s annual pay survey leaves me stunned.

While it’s true Rensselaer president Shirley Ann Jackson has a stellar resume and much of her pay came via a $5.9 million retention incentive that kept her in place for 10 years, the incentive bonus coupled with her annual salary of $945,000 means the real cost came to  $1.5 million a year.

Rensselaer’s annual tuition cost: $46,700 per semester (not including room and board).

How many students do we discourage from or otherwise price out of the leading colleges each year? How many of those who do suck up and write the checks leave so encumbered by student loans that they end up on Wall Street or sales or some other non-engineering area where they can recoup their “investment?” And for good measure, let’s ask what is the mission of the university in the first place?

 

IPC Apex Expo Programs Highlight Technology and Innovation

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Ed.: This is a guest blog from IPC.

No matter where you are in the global electronics supply chain, you’ve probably heard the phrase, “I need it now.” In this fast-moving, ever-evolving industry, we hear that a lot.

What drives what happens now? A critical combination of the latest technology and knowledge, which is what you’ll find at IPC Apex Expo 2015.

Starting with the opening keynote with Robbie Bach, former president of entertainment and devices at Microsoft and Xbox visionary, you’ll learn about the triumph of a strategic process that brought together a disparate group of talented individuals who applied entrepreneurship to build a successful consumer business within the larger Microsoft structure.

On the show floor, you’ll see and compare equipment from more than 440 of industry’s top suppliers, discover new processes to gain greater efficiency and uncover news solutions that will help improve your bottom line.

In keeping with the event’s theme, “Upgrade Your Tech-NOW-ledgy” the technical conference will feature approximately 100 technical papers detailing original research and innovations from industry experts around the world.

For best practices in design, lead-free technologies, materials, process improvement, solder joint reliability, PCB fabrication and materials, quality and reliability, the more than 30 professional development courses will go beyond theory to provide practical solutions you can implement now.

With so many outstanding courses and technical papers to choose from, and the world’s elite subject matter experts to interact with, your best registration option is the All-Access Package. This package will save you a significant amount off a la carte options, but more importantly provide the maximum learning experience for your investment.

The All-Access Package includes the technical conference, conference proceedings, standards development committee meetings, a choice of up to five half-days of professional development courses, event essentials, luncheons, design forum, and if you’re a senior-level executive – PCB supply chain leadership or EMS management council meetings.

If you want to upgrade your tech-NOW-ledgy, IPC Apex Expo 2015 is the place to be. For more information or to register, visit www.ipcapexexpo.org.

 

 

The December Issue of PCD&F/CA

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Our December issue hits the digital streets today and features a cover story from Terry Munson at Foresite, who performed a comparison of analytical techniques using 25 conformal-coated no-clean assemblies after environmental testing for 40°C/90%RH for 168 hr. Terry found FTIR, SEM/EDS and ion chromatography need an assist when determining the true source of contamination.

Another major feature reviews system design methodology for complex PCB designs.

Other highlights include discussion of pad-to-via clearance’s effects on solder joint strength, minimizing bottom termination component voiding, printer tooling, controlling solder paste slump and how to deal with an unhappy OEM.

As always in December, we look back at our industry friends and colleagues who passed away this year.

Finally, is free CAD a good thing? That’s the question I ask in my editorial this month.

Actual and Potential Use of Drones in Precision Agriculture

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Ed.: This is a guest blog by Alex Danovich of San Francisco Circuits.

Unmanned Aerial Vehicles (UAV), Unmanned Aerial Systems (UAS), Remotely Piloted Aircraft (RPA) or more commonly referred by mass media as drones are gaining popularity and often discussed for many new approaches to old applications. In the last couple years drones are rapidly gaining attention not only due to the traditional military applications but also civilian uses. This transition brings the drone industry closer into new commercial applications that literally pop up every day.

There are many directions of potential use but according to this economic report provided by the Association for Unmanned Vehicle Systems International (AUVSI) in 2013 more than 80% of civilian drone applications will be connected with precision agriculture (PA), creating many new jobs and billions in market value.

San Francisco Circuits took a look at the growing precision agriculture industry with a supplier and expert in this field, Michal Ruš of e-Dron. “We believe that a low-cost drone can be effective tool for precision agriculture. Our Skyhunter fixed wing configuration (under 2000 EUR) is able to map an area of 150 hectares in less than 30 minutes.”

A few hours after the drone’s flight and scan, an accurate orthophoto map and 3D surface model with RGB and NDVI imagery is created. Such models/images can be exported directly into farm management programs and variable rate prescription maps.

By providing a service-based operation instead of drone ownership, e-DRON believes it is able to remove the burden of operation, maintenance and certification of such drones by farmers. Farmers rely on timely and accurate data to make better decisions. They are focused on their crops and if drones are not bulletproof or easy to maneuver for anyone without proper training, it makes sense to leave its operation to service providers.

Skyhunter fixed wing with RGB and NIR camera dual configuration

e-DRON is currently building such a bulletproof drone with the help of some consultation on custom PCB fabrication and PCB assembly from San Francisco Circuits.

Drone hardware and software. But what is the drone made of? The difference between a drone and a model aircraft/copter is the flight controller with autonomous features. In this case, the heart of the Skyhunter model consists of a Pixhawk autopilot developed jointly by the PX4 open hardware project and 3D Robotics.

The autopilot contains a six-layer PCB with isolated power nets for the main and safety processor. It’s a 1.6mm FR-4 board with 0402 standard components, minimum pitch of 0.2mm and 0.15mm spacing. Copper thickness and stackup are standard with 0.35um copper. The challenge in autopilot electronics is not the base technology, but to ensure highest quality throughout the complete production process from PCB manufacturing to assembly.

Pixhawk – advanced 32bit autopilot by 3D Robotics

The payload itself consists of 2 consumer grade point-and-shoot cameras; one is the original RGB camera and the second is converted to NIR (near infrared).

The processing chain to obtain orthophoto/3D imaging of a desired piece of land has a pretty simple workflow. The mission starts with a drawing a polygon around the desired area in Mission Planner software. Once the mission is complete, the images are transferred to a powerful PC to process the remaining steps.

Depending on customer requirements, ground control points (GCPs) are measured with RTK GNSS (2cm accuracy) before the mission start. These points are then manually assigned together with images from the cameras on the software to produce an accurate geo-referenced orthophoto and 3D model. The NIR-produced orthophoto is then the most useful product for the farmers to spot the crop health immediately. Although more advanced sensors exist that would outrun the performance and accuracy of such a converted NIR camera, this is the lowest cost solution.

Applications in precision agriculture. Drone use in PA is all about saving inputs to farmers. Whether it’s an indication to use fewer pesticides, fertilizers or water for irrigation, PA will make billions of cost savings and greener food products.

The drones are good at monitoring crops for a very low relative price. When compared with satellites or manned planes/helicopters, low cost drones are cheaper and can be deployed every day, even in a cloudy day. The farmers have no other cost effective way to scout their large fields than by drones. Other than the RS detection of the crop health, drones are already able to effectively manage fields by crop dusting with variable rate technology.

Future of drones in PA. Multi-sensor drones with more advanced micro-sensors (like hyperspectral, thermal, LiDAR, etc.) and smart zonal auto-classification analytics are in development.

Swarm operations (multiple drones) with continuous remote sensing (day passive sensors and night active sensors) for larger fields and applications are all viable for scaling.

Powering the drones using solar energy with hydrogen fuel cell technology (unlimited endurance, 24/7 operation), making instant real-time cloud processing of acquired data streamed via high-bandwidth telemetry (no need for many SSD/HDDs onboard of multi-sensor drones) is also a very real application. Drones may eventually be programmed to automatically take actions of the whole lifecycle – from RS detection to immediate application of inputs. Harvest or seeding may be the next drone activity.

The future is in the sky!