Anecdotal reports indicate some manufacturers are purchasing larger-than-needed amounts of raw materials and certain components out of concern for supply availability in coming months. This is all tied to the shortages brought on by the earthquake and tsunami in Japan.
In the near-term, I expect analysts will be a bit confused as to what’s real demand and what’s over-ordering. Something to watch.
Stay tuned …
Congratulations to old friend Don Dupriest, the latest inductee to the IPC Hall of Fame. Don has been an steady hand on the tiller of many, many IPC bare board and materials specifications for three decades. He truly deserves the honor.
And a big shout out to old friend Dieter Bergman, who celebrated his 80th birthday Sunday in a unique way — he got married. I couldn’t be happier for my friend.
And a big shout out to old friend Dieter Bergman, who celebrated his 80th birthday Sunday in a unique way — he got married.
Larry Maher, global sales manager, CircuiTree, sent an email to customers today, writing: “It is my sad duty to inform you that effective May 1, CircuiTree Magazine will be ceasing publication. The last published issue is the April, 2011 issue. The CircuiTree e-mail newsletters will cease publication effective May 1 and the CircuiTree web site will be closed on May 1.”
CircuiTree was an earnest and competent challenger through the years, despite its many management changes. The past few years, it suffered from something of an identity problem as it struggled with trying to decide which market it served. As a result, I think its coverage suffered. Still, 25 years is a good life for a magazine. Today, we salute our fallen competitors and colleagues.
As noted yesterday, Altium is packing up its HQ, R&D and marketing teams and moving them lock, stock and barrel to Shanghai. After hearing some of the usual chortling and catcalls, then finally speaking with Altium (late) last night, the rationale behind the move seems sound, if a bit abrupt. I’ll have more on that later today when I post the interview.
Also on the far West side of the Pacific (it doesn’t pay to sleep in this job) Fujitsu will integrate its signal integrity tool into Zuken’s CAD suite. (Not certain yet what this means for Zuken’s own SI tools, which at the moment actually have a larger market share than Fujitsu’s.) The move would put the combined suite closer to No. 2 Ansoft in the SI arena. Mentor is still well ahead of the pack, but it’s a start.
Yes, you read that right. Sydney’s favorite EDA software developer is turning Chinese, relocating its headquarters and R&D operations to the mainland.
That’s the “what.” The “why” is not so clear.
In a press release, Altium spoke of the “Internet of Things,” China’s talent pool and the potential for greater revenue in China.
I’m probably on the Web 15 hours a day (or more, according to my wife), but I’m mot sure what the “Internet of Things” is. I’m guessing it has something to do with Altium’s move toward cloud computing. If so, it doesn’t need Shanghai for that. Server containers, especially ones laden with databases, should be located wherever energy is cheapest and IP secure. Shanghai is an incredibly safe metropolis insofar as physical well-being is concerned. For technology protections, not so much.
As for the Chinese talent pool and revenue potential, that’s all true. But it would be equally true if Altium maintained a token HQ in Sydney. Companies do that all the time.
The distance from Sydney to Shanghai is about 5,000 miles (8,000 km). Having been to both, I can also say they are quite a bit farther apart in terms of lifestyles and cultures. I’m not certain how Nick Martin convinced his top execs to move, but it couldn’t have been easy.
Compared to its rather staid EDA competitors, Altium is more unpredictable and daring (and usually more fun as a result), and usually those moves have paid off. I’m having trouble seeing the advantages here, though.
April 1st has come and gone. The concept of “April Fools” goes back many years. In some circles, the first April Fools’ Joke is said to have been played on November 13 in the year 1959 by Duchess Gloriana XII of Grand Fenwick. Others pin the first joke several centuries earlier.
Conventional thinking is that the jokes played on that day can be humorous, annoying, disruptive or downright dangerous. It’s the disruptive and dangerous jokes that have caused the formation of a movement to ban all jokes on April 1st. Despite that, history has shown that the levity of the day can have positive effects as well. That being the case, here are my top five reasons April Fools’ Day can be good for you:
Duane Benson
Ever get that sinking feeling – you had a very tiny part out so you could use the part number in a humor blog post referring to consuming that part and when you’re about halfway through the snack you’ve been eating while writing the post, you discover that the tiny little part is gone? At least it’s a lead-free part.
I’m one of those who didn’t see the possible acquisition of LaBarge by a non-EMS firm.
In fact, I thought either LaBarge would continue to buy other, smaller EMS firms (I’ve heard of its interest in some deals that were never consummated), or it would be gobbled up by a Sanmina-SCI or the like.
But today defense supplier Ducommun announced it would acquire the electronics manufacturing services firm for $340 million, or just one times revenue plus debt. The move is expected to almost double Ducommun’s annual revenue and boost its margins.
Don’t expect those synergies to happen overnight, if ever. EMS is a different sell than the components like panels and switches Ducommun has made a living off of for more than 150 years.
Here’s a question: Does this, coupled with API Technologies’ recent acquisition of SenDec, signal a larger trend of consolidation on the competitive but relatively margin-friendly military EMS industry?
Another question: What becomes of Craig LaBarge, who has run the eponymously named firm since 1991, taking over for his father, who founded the company in 1953. Will he sit still on the sidelines, or will he take another shot at empire building?
Foxconn Precision Electronics, the cellphone manufacturing arm of — guess who? — Foxconn, is for sale.
Well, actually it has been sold.
To Foxconn.
Allow me to explain. Hon Hai, which trades under the Foxconn name, has myriad subsidiaries. Some of those subsidiaries have other subsidiaries. Despite the growing handset market, FPE’s parent, Foxconn International Holdings, has been losing money — $218 million last year alone. So despite sales of $6.63 billion last year, FPE has been sold to China Prime Rich Holdings, a wholly owned subsidiary of — wait for it — Hon Hai.
If that wasn’t awkward enough, the sale price was HK$550.4 million, which in US currency is $70.7 million.
In other words, Foxconn bought from Foxconn an entity the size of Celestica for about four days’ worth of revenue. No word yet what the company directors paid themselves for what must have been an exhausting maneuver.
Only in China.