Vol. 26, No. 2 February 2016

Annual Drop in M&A Deals

In 2015 the number of EMS Chart 1: EMS Industry Mergers and Acquisitions industry mergers and acquisitions fell 140 from the year before. M&A transactions that closed during 2015 120 totaled 26, down 7.1% from a revised count of 28 in 2014. Transaction totals 100 have been in decline since a 80 postrecession high of 45 in 2010 (Chart 1). The lackluster macro 60 environment and associated 40 uncertainties that followed the recession have not encouraged deal 20 making. MMI’s annual Scorecard of EMS 0 industry M&A on pages 2 and 3 lists the transactions closed in 2015 and classifies them according to four categories developed by MMI. The second most common deal in All of these 2015 deals resulted in EMS providers made acquisitions to 2015 was acquiring competitor consolidation, or the loss of an extend their service or supply chain operations (marked C on the independent provider. Industry capabilities. In 2015, this was the Scorecard). With these transactions, consolidation persists, though the most popular type of deal, in contrast EMS providers acquire competitor number of consolidation deals dropped to the year before. Last year, there operations to expand their footprint or last year (Chart 3, p. 4). The were 20 instances of EMS providers consolidate their operations to gain consolidation count of five deals buying competitors’ operations to competitive advantage. Last year, there in 2015 was 66% below a 13-year extend service or supply chain were five instances of EMS providers average of 15. capabilities (marked S on the buying competitor operations, down In the early part of the 2000s, OEM Scorecard), an increase from 10 the from 17 the year before (Chart 2, p. 4). divestitures contributed a significant year before (Chart 2, p. 4). Back in continued on p. 3 the prerecession days, capability deals were more commonplace. From 2002 Some articles in this issue to 2008, capability deals averaged Cover Story…………………………………………………………………………………….1 17.9 per year. As the industry Annual Drop in M&A Deals matures, providers are seeking to MMI Scorecard of Mergers and Acquisitions.……………………………………….…..2 enhance their service offerings and Summary of Alliances and Equity Partnerships…………..………….……………..….4 are feeling the need to acquire new Flat Year for US-Traded Group………………..…………………………………….…………..5 capabilities. Company News…………………………………………………………………..…………….………6

MMI Scorecard: EMS Industry Mergers and Acquisitions in 2015

Deal Maker Home Base Type Target Location Some Details Sparton Corp. Schaumburg, S KEP Marine Birdsboro, PA This acquisition of KEP Marine meets the criteria IL of Sparton’s growth strategy by growing its ruggedized electronics platform. KEP Marine will be added into Aydin Displays, allowing Sparton to further enhance its position in the marine market.

Sparton Corp. S Hunter Technology Corp. Milpitas, CA Sparton acquired Hunter Technology Corp. in a $55 million all-cash transaction. This fulfilled Sparton’s strategy of having a significant facility in . Integrated Micro-Electronics Laguna, S PSi Technologies Laguna, Integrated Micro-Electronics, Inc. (IMI) bought out Inc. Philippines Philippines minority investors in the semiconductor manufacturing unit PSi Technologies, Inc., thus taking control of 100% of the company.

Kulicke & Soffa Singapore S Assembléon B.V. Veldhoven, This acquisition expanded Kulicke & Soffa’s Netherlands advanced packaging portfolio and market opportunities; the deal was valued at approx. $98 million. Centre Lane Partners New York, NY C* STACI Corp. and EPM Global Lagrange, OH & Centre Lane is merging STACI with EPM Global Services Markham, Services. EPM Global Services and STACI Ontario Corporation announced the new name of the combined companies: Vexos. PKC Group Plc Helsinki, S Kabel-Technik-Polska Sp. z o. Czaplinek, This acquisition fits PKC’s strategy and adds a Finland o. Poland rolling stock business segment to its portfolio. The net debt-free purchase price is €50 million. NATEL Engineering Chatsworth, C* OnCore Manufacturing, LLC Springfield, MA NATEL Engineering Company, Inc. and OnCore Company CA Manufacturing, LLC (OnCore), both suppliers of EMS, have merged and the new company is named NEO Tech. In 2014, OnCore had revenue of approximately $406 million. (also known Singapore S Mirror Controls International Woerden, Flex acquired Mirror Controls International (MCi) as Flextronics) Netherlands from private equity firm Egeria in a deal valued at $494 million. MCi is a strategic acquisition that will directly enhance Flex’s automotive offering.

Flex O Alcatel-Lucent plant Trieste (Italy) Flex will take responsibility for new product introduction, manufacturing, integration, and repair services of Alcatel-Lucent optical equipment at the site. Alcatel-Lucent and Flex have also signed a five-year, renewable contract for the supply of optical products.

Flex S NEXTracker Fremont, CA The deal has been valued at $330 million. The acquisition will augment the Flex Energy business and contribute to its more than $1 billion in sales. Flex S Wink New York, NY Flex entered into an agreement to acquire Wink, a smart home platform that enables smart products to work together seamlessly and connect and communicate globally, as it is expanding its stake in the IoT, or what Flex calls the "Intelligence of Things." Flex S Farm Design New Hampshire With the acquisition of Farm Design, Flex further expands its medical device segment, industrial design, usability engineering, and development expertise. Scanfil Oyj Finland C* PartnerTech AB Vellinge, Sweden The combined company will be the leading EMS company in the Nordic market, with a comprehensive service portfolio and factory network and a strong global presence.

NCAB Group Bromma, S Ulf Andersson Electronik Gävle, Sweden NCAB Group has acquired 100% of Ulf Andersson Sweden Elektronik’s PCB Division. Valence Surface Gardena, CA S Flex facilities in California San Carlos, CA Valence has acquired the assets and operations of Technologies Flex San Carlos in San Carlos, California. Under Valence ownership, the business now operates under the name Valence San Carlos.

Manufacturing Market Insider, February 2016 2 Deal Maker Home Base Type Target Location Some Details Nortech Systems Wayzata, MN S Devicix, LLC Eden Prairie, MN Nortech Systems, Inc. is hoping to capitalize on high demand for healthcare gadgets by acquiring Devicix, a company that does outsourced design work for large and small medical-device makers. The deal was valued at $5.3 million. Manz AG Reutlingen, S KLEO Halbleitertechnik GmbH Tettnang, Manz has acquired a specialist in laser direct imaging Germany Germany of printed circuit boards. Expansion of the technology portfolio opens new perspectives for Manz in the rapidly growing market for high-resolution printed circuit boards. IEE S.A. Luxembourg S ALL Circuits S.A.S. France With the ALL Circuits acquisition, IEE will be positioned to develop its expertise in the automotive safety electronic production process and will have direct access to electronic manufacturing excellence. This acquisition will also enable it to enlarge its product portfolio, particularly in the nonautomotive market. The company, however, will continue its EMS business. HANZA Holding AB Sweden C* Metalliset Oy Finland Through this acquisition HANZA creates a group with turnover of about SEK1.5 billion and profitability considerably higher than the current level, both in absolute and relative figures. Through the acquisition, the number of manufacturing technologies provided in HANZA’s all-you-need-is-one™ and MIG™ concepts is increased and HANZA’s geographical presence is strengthened.

Keysight Technologies Santa Rosa, CA S Anite Plc United Kingdom Keysight paid approximately $600 million in cash for Anite, in a deal that supports Keysight’s strategy to grow in wireless and expand its software offerings. Greatbatch, Inc. Frisco, TX C* Lake Region Medical Wilmington, MA The deal was valued at about $1.73 billion. The combined company, expected to employ more than 9,000, will service the cardiac, vascular, orthopedics, and advanced surgical markets, with operations in the , Latin America, Europe, and the Asia- Pacific region. Libra Industries Mentor, OH S ACD Richardson, TX This acquisition adds to Libra’s capabilities, allowing it to offer quick-turn prototypes and more testing technologies.

Benchmark Electronics, Inc. Angleton, TX S Secure Communication Santa Ana, CA Benchmark acquired Secure for approximately $230 Systems, Inc. million in cash. It will open up new opportunities with customers in Benchmark’s industrial markets, which include the aerospace and defense sectors. (also known as Hon New Taipei, S Wcube Co., Ltd. China Foxconn acquired optical product maker Wcube from Hai Precision Industry) Taiwan Ace Noble Investments. Foxconn reportedly paid $10.62 million when acquiring a 21.18% stake in the company. St. Petersburg, S Shemer Jabil said this acquisition will strengthen its position in FL the Israeli market and in the business for contract manufacturing in Europe. Norautron Group Horten, S Hatteland Display Nedre Vats, Including Hatteland Display, the Norautron Group will Norway Norway have an estimated annual turnover of approximately NOK1.8 billion (€193.14 million) and will be a significant player in several segments of the electronics industry, with positions in markets for complete products and components.

C = CM acquiring or merging with CM operation. O = OEM divesting OEM operation. S = service or supply chain extension. N = new player. *Consolidation deal.

number of deals. As the industry would not attract any new players. That down from 13 formed the year before progressed, these deals, often in high-cost has been the case this year. No company (see table, p. 4). areas, became less and less attractive. For entered the EMS industry via acquisition Note that the M&A Scorecard does 2015, MMI discovered one OEM last year (marked N), versus one the not include private equity deals or divestiture (indicated as O), surprisingly, year before. MMI also keeps track of divested assets sold to industry up from zero the year before. alliances and equity partnerships, which outsiders. One might think that a mature EMS are an alternative to M&A deals. In industry, notorious for low margins, 2015, there were 12 such partnerships, Manufacturing Market Insider, February 2016 3 EMS Industry Alliances and Equity Partnerships in 2015 Company Home Base Partner Location Some Details Europlacer Dorset, UK EMS Partners Lakeville, MN Europlacer has appointed EMS Partners as its manufacturer’s representative, servicing Minnesota, Wisconsin, North Dakota, South Dakota, Iowa, Nebraska, Missouri, and Kansas. STMicroelectronics Switzerland Flex (also known as Flextronics) Singapore To jointly develop a plug-in charging platform based on an ST multimode power-management controller Kimball Electronics Jasper, IN Genetec Technology Berhad Malaysia To support the production of multiple newly awarded programs for a Kimball automotive customer PartnerTech Sweden Toyota Material Handling Europe The companies have signed a framework agreement covering production of electronics and electromechanical modules for forklifts. The agreement includes product development, prototyping, production, and aftermarket sales. The deal is valued at SEK30 million (or €3.14 million). Elcon Denmark Quicktronics Germany Both Quicktronics and Elcon have logistics setups in China, but the companies are working to create a large joint logistics center. The goal is to establish this joint logistics center in southern China. Incap Corporation Finland Aidon Oy Finland Incap will contribute to the cooperation by launching a new project focusing on a smart Prototype & New Product Introduction (NPI) model. Incap provides Aidon with EMS services from its Kuressaare factory and now the companies are taking steps toward better implementation of the Lean Supply Chain model. Flex Singapore SunEdison Belmont, CA Flex has been selected to partner with SunEdison to manufacture its solar modules in Mexico. PKC Group Finland Jiangsu Huakai Wire Harness Co., China The joint venture aims to increase PKC's market Ltd. share in the Chinese medium and heavy trucks segment by 8 percentage points, and also expand its clientele with new customers. PartnerTech Sweden Kongsberg Devotek Norway The companies have entered an agreement to cooperate around a joint offering to product owner customers, with complete service from the concept stage to the finished product. Kitron AB Sweden Saab AB Sweden Kitron has signed a strategically important long- term frame agreement with Saab AB for military avionics and aeronautic electronic equipment. The frame agreement has a potential order value of more than NOK400 million over 20 years. Incap Corporation Finland Comsel System, Ltd. Sweden The companies have signed an agreement to manufacture Internet of Things (IoT) equipment. Devices to be manufactured by Incap include communication modules used for remote data acquisition and control for the energy sector. Briton EMS United Kingdom 42 Technology United Kingdom The companies have joined forces to help the Aircraft Research Association (ARA) develop and launch a new research tool for use within its high-speed wind tunnel in Bedford.

Chart 3: Consolidation Deals

25 20 15 10 5 0 2003200420052006200720082009201020112012201320142015

Manufacturing Market Insider, February 2016 4 Flat Year for US-Traded Group gains, though these gains were not whose bottom lines increased from enough to outweigh declines at the other Q3. On a year-over-year basis, GAAP Growth in combined revenue for the three providers (Table 1). net income growth was much higher, six providers was negative 0.1%. For the five GAAP companies, GAAP with a 22% compared to a 0.9% Fortunately, fourth-quarter results on gross margin in Q4 was a combined increase in revenue. Three companies the whole came in better than 8.1%, up 30 basis points sequentially succeeded in boosting their net expected, and 2015 will go down as a and up 30 basis points year over year. income from a year earlier, with Jabil flat year for this US-traded group. All except Plexus were able to raise posting the biggest net income Revenue for the six providers totaled their gross margins from Q3, and all but increase. Q4 net margin for the $60.18 billion in 2015, compared Plexus improved their margins from the GAAP reporting companies was up with $60.26 billion in 2014. Last year, year-earlier period. 2.4%, compared to 2.1% sequentially sales decreases at three providers Together, the five companies in Q4 and offset revenue increases at three produced a GAAP operating margin of 2% year over year. providers, with the second company in 3.6%, up 10 basis points sequentially, For 2015, however, combined the table (Jabil) holding the highest and no growth in basis points year over GAAP revenue for the five growth position with 16.2% sales year. The GAAP operating margin companies fell despite net income growth. Annual growth rates ranged increased quarter to quarter throughout growth. Net income for the year from 16.2% for Jabil to –9.2% for 2015. Benchmark’s operating margin of increased 15.3% to $1.15 billion, Benchmark (Table 1, below). 4.5% was well above results turned in whereas sales dropped 0.2%. Sanmina In Q4, the six providers together by the other GAAP companies. Jabil, and Plexus were the only two generated sales of $16.26 billion, up Sanmina, and Benchmark improved companies to realize annual decreases 1.4% from the same period a year ago. their GAAP operating margins from the in GAAP net income, whereas Jabil For the fourth quarter in a row, the prior quarter and also from a year posted the highest growth. group’s revenue grew year over year. earlier. As for the lone IFRS reporting New Venture Research (publisher of This growth was driven by Jabil and, company, saw its IFRS MMI) has recently entered into an to a lesser extent, Celestica, while operating margin decrease from the exclusive partnership with one of the only Jabil attained double-digit growth prior quarter and also from the year-ago most recognized and widely used (Table 1). These were the only two period (Table 1). EMS executive search firms in the companies (Jabil and Celestica) with On a sequential basis, GAAP net industry. As part of this trusted appreciable Q4 growth on a year-over- income for the five companies in Q4 relationship, we can now offer our year basis. grew faster than sales did. Their clients access to the top professional On a sequential basis, the group’s aggregate net income of $361 million talent in the EMS industry. Simply Q4 revenue increased 6%, again increased 19.2%, while sales went up contact the publisher to learn more largely due to Jabil, with support from 5.9%. Flex, Jabil, and Benchmark and we would be happy to answer Celestica and Flex (also known as Electronics were responsible for the any questions and make a discreet Flextronics). Jabil posted double-digit sequential increase in net income, as introduction. they were the only GAAP companies

Table 1: Q4 and 2015 Results for the Six Largest US-Traded EMS Providers (M US$ or %)

Qtr.- Q4 '15 Q3 '15 Q4 '14 Q4 '15 Q3 '15 Q4 '14 Q4 '15 Q3 '15 Q4 '14 Yr.-yr. Q4 '15 Q3 '15 Q4 '14 Yr.-yr. 2015 net 2014 net Company qtr. gross gross gross oper. oper. oper. 2015 Sales 2014 Sales sales sales sales chg. net inc. net inc. net inc. chg.2 inc. inc. chg. marg. marg. marg. marg. marg. marg.

Flex 6,763.2 6,316.8 7.1 7,025.1 –3.7 6.4% 6.0% 5.7% 2.2% 2.6% 2.6% 148.9 123.0 152.9 24,597.8 26,920.3 –8.6 517.8 508.7

Jabil 5,208.0 4,680.8 11.3 4,550.4 14.5 9.1% 7.9% 8.3% 4.1% 3.2% 3.5% 131.4 87.7 73.8 18,556.8 15,969.9 16.2 342.5 201.7

Sanmina 1,534.7 1,636.6 –6.2 1,671.2 –8.2 8.0% 7.4% 7.8% 3.6% 3.0% 3.5% 26.8 47.7 22.7 6,238.1 6,438.8 –3.1 113.7 117.6

Benchmark 625.7 630.2 –0.7 709.5 –11.8 9.1% 8.6% 7.9% 4.5% 4.3% 4.0% 39.4 20.6 23.3 2,540.9 2,797.1 –9.2 95.4 81.5

Plexus 616.7 668.7 –7.8 664.7 –7.2 8.1% 8.9% 9.2% 3.7% 4.3% 4.6% 14.4 23.9 23.1 2,606.3 2,509.0 3.9 85.7 92.5

Subtotal/avg. 14,748.3 13,933.1 5.9 14,620.9 0.9 8.1% 7.8% 7.8% 3.6% 3.5% 3.6% 361.0 302.8 295.7 54,539.9 54,635.1 –0.2 1,155.1 1,002.0

Celestica 1,514.9 1,408.5 7.6 1,424.3 6.4 6.5% 7.0% 7.2% 2.7% 3.1% 3.1% 12.1 10.9 (4.4) 5,639.2 5,631.3 0.1 66.9 108.2

Total/avg. 16,263.2 15,341.6 6.0 16,045.2 1.4 60,179.1 60,266.4 –0.1

All results are based on GAAP except those of Celestica, which has adopted IFRS reporting. With the exception of sales, GAAP and IFRS results are not necessarily comparable. Flextronics’ name has been changed to ‘’Flex’’ officially. For Sanmina we have considered non-GAAP net income for its fourth-quarter (both 2015 and 2014) period.

Manufacturing Market Insider, February 2016 5 Company News cluster with approximately 450 down by the quake, thus affecting employees. The decision affects 80 wafer production. TSMC is one of two Sparton Corporation’s employees in Aruküla and is expected to chip fabricators for the iPhone 6s, and is expected to be the sole manufacturer President and CEO Resign result in limited one-time costs, which essentially will be charged during the of the A10 chip for the iPhone 7. Sparton (Schaumburg, IL) announced first half of 2016. The merger is TSMC initially said that it expected two resignations effective immediately, expected to have a positive effect on the 95% of production capacity to be of Cary Wood as President and CEO, and HANZA Group’s earnings as of the restored within 2–3 days, and that the Michael Osborne as SVP of Corporate third quarter of 2016. long-term impact would be a loss of Development. around 1% of 2016 production. Joseph J. Hartnett, current Chairman of However, DigiTimes now reports the the Board of Directors, has been Apple Adds to company says that damage to one of appointed interim President and Chief New iPhone Supply Chain the chip-fabrication facilities is “worse Executive Officer and will serve in that Apple (Cupertino, CA) is adding than originally assessed.” position until a new President and Chief Wistron (Taiwan) as a supplier of the The company has, however, Executive Officer has been appointed. so-called “iPhone 5se,” in addition to indicated that it is “confident” of Mr. Hartnett has stepped down as Foxconn Electronics, as reported by hitting its revenue targets for the first Chairman and from the Board’s Audit DigiTimes. The latter will still lead quarter of the year, suggesting that it Committee but will remain on the Board. production on the next-generation 4- still expects the impact to be relatively The company did not announce the inch iPhone, but Apple is ensuring that minor. reason for Wood’s and Osborne’s manufacturing goes as smoothly as The quake also hit several departures. possible by introducing a secondary semiconductor, optoelectronic, and Sparton announced the closure of the supplier in Wistron. photovoltaic companies located in the Lawrenceville, GA site and the According to the report, the split in Southern Taiwan Science Park (STSP). consolidation of the Irvine, CA design suppliers will also continue for the Several of the companies had their center last quarter. iPhone 7 and iPhone 7 Plus. Foxconn production lines shut down, and as the and Wistron will both supply the larger lines were in mid-production, the Facility relocations… EMS provider 5.5-inch iPhone 7 Plus, while companies will have to clear the semi- Kitron (Norway) has decided to relocate will share manufacturing duties with finished products from the lines before the Swedish operations to a facility that Foxconn for the 4.7-inch device. continuing with production, according will be built for Kitron in Torsvik, not far Apple sees doubling up suppliers on to a report in DigiTimes. from the current facility in Jönköping. one particular iPhone as a chance to One of the affected companies was Kitron will lease the new facility, and the lessen manufacturing risks, such as LCD panel maker Innolux. The move is expected to take place in late faulty components. The company used company evacuated its plants in 2016. The company’s relocation of its the same strategy most recently in the Tainan, Taiwan as soon as the quake Norwegian facility in Arendal, from iPhone 6s, divvying up production hit. The company’s production system Hisøy to Kilsund, is going according to duties between Foxconn and Pegatron. automatically shut down all plan and budget. The first production in On both versions of the 2016 iPhone, equipment. However, there was a Kilsund started up in the beginning of Foxconn will remain the “major small fire in one of the company’s January… SMK Electronics (Chula supplier” for each device. engine rooms. Production is gradually Vista, CA), a division of SMK returning to normal, the report Corporation, a manufacturer of OEM Taiwan Earthquake: Apple continues. remote controls and consumer electronics components, will relocate and expand its Chipmaker TSMC Says New orders… Equipment SMK and SMK-Link San Jose business Damage Will Affect manufacturer Manz AG has acquired offices. To better serve its customers in several large and important orders in northern California, the company will Production the electronics segment, following relocate to a new 3,600-square-foot An earthquake hit southern Taiwan on several new and follow-up orders in facility… Swedish EMS provider Saturday, February 6. At least 37 people the energy storage segment just HANZA Holding acquired the died in the magnitude 6.4 quake; more recently. These new and follow-up mechanics manufacturer Metalliset last than 500 are reported injured. orders comprise machines for year. Through the acquisition, a Semiconductor foundry Taiwan assembly automation and laser process production unit in Aruküla, Estonia was Semiconductor Manufacturing equipment, with a total volume of obtained. HANZA has now decided to Company (TSMC) and United more than €20 million. The orders will transfer and merge this unit with the Microelectronics (UMC) were affected impact revenues and earnings during Group’s other operations in Tartu, by the earthquake. The companies’ the first six months of 2016. Following Estonia, creating a manufacturing production lines were automatically shut the company’s successful acquisition Manufacturing Market Insider, February 2016 6 of several large orders in the assembly distributor, increasing the footprint and Intellectual Property Office (IPO) automation segment last year, it has expanding the “Internet of sensors” under Taiwan’s Ministry of Economic now obtained a large Chinese group in platform globally. With the extended Affairs. the consumer electronics industry as a agreement, Avnet is now chartered with Taiwan Semiconductor new customer. sales and value-added support for Manufacturing Company (TSMC) InvenSense’s MEMS sensor platform ramped its position to second place BB Electronics Sold… to solutions in the US, Asia, the EU, and with 503 applications, the company’s Japan. Its Own Management highest in 10 years. ITRI (Industrial Technology Research Institute) ranked Following recent operational third, with 466. improvements at Danish EMS provider Pegatron to Compete for led foreign enterprises in the BB Electronics, equity fund Axcel Notebook ODM Orders number of patent applications in entered into an agreement to sell the Pegatron Technology (Taiwan) is Taiwan in 2015, with 956 patents, also company to an investor group poised to compete for notebook ODM the highest number in 10 years. consisting of representatives from orders from Dell to make up for Toshiba Toshiba followed with 413 and Tokyo management and the board. canceling orders for consumer notebooks Electron with 404. An investor group is now acquiring in 2016, according to industry sources. Semiconductor companies were the BB Electronics from Axcel. The group Toshiba has decided to focus on most active patent applicants in 2015; includes the current minority business-use notebooks and undertake the number of applications filed by shareholder Skovbit (a company owned consumer model production in-house, and Intel, TSMC, and Samsung Electronics by the original founder) and so stopped outsourcing production at the showed significant growth compared businessman Per Blinkenberg-Thrane, end of 2015, the sources said. Toshiba with a year earlier, said the IPO. co-founder of Thrane and Thrane. In placed ODM orders for consumer However, patent applications filed by addition, the group consists of notebooks with Pegatron (about 50%) and LCD panel makers, including representatives from the management, (40%), the sources Samsung, LG Display, AU Optronics including CEO Carsten Christensen indicated. (AUO), and Innolux, declined sharply and Chairman Ole Steen Andersen, Pegatron is a main ODM for Dell’s AIO this year, as reported by DigiTimes. former CFO of Danfoss. (all-in-one) PCs currently, the sources

The company has a turnover of said. However, as Dell has released ODM approximately DKK425 million orders for 70–80% of its notebooks to be Innolux Restores 85% (€56.94 million) and has 500 launched in 2016 to Compal and the Capacity at STSP employees in Denmark and China. remaining portion to Wistron, Pegatron is TFT-LCD panel maker Innolux has Under its new ownership, the company unlikely to obtain orders from Dell in restored 85% of its production expects its positive development to 2016 but is likely to in 2017 if its quotes capacity at the Southern Taiwan continue, as reported by Evertiq. are competitive, the sources indicated. Science Park (STSP) following damage from the massive earthquake that hit Partnerships and alliances… EMS Facilities closing… Toshiba (Japan) southern Taiwan on February 6. Due to provider (San reportedly plans to close its R&D center fewer working days and the earthquake Jose, CA) will collaborate with Nokia in Taiwan and will lay off about 100 impact, Innolux said it expects (Finland) for the delivery of a range of engineers working at the center, according revenues for February to drop to a low data center solutions to enable to sources in Taiwan’s notebook industry. level, reports DigiTimes. operators to harness the cloud. As the planned layoff is scheduled to be This strategic collaboration between executed by the end of March, some local Investments… Chinese mobile Nokia and Sanmina will focus on the notebook brands and ODMs have begun handset firm Oppo said it will invest delivery of cost-effective, scalable, to raid talent from the R&D center, the Rs 1 billion to start its own multivendor cloud infrastructure sources noted. Toshiba will also shift the manufacturing unit in India by August solutions. With Sanmina’s experience focus of its PC business to the business this year. Oppo has already started its in IT infrastructure, hardware sector and will promote its consumer mobile handset production in India at integration, and global fulfilment for notebooks mainly in the US and Japan, as electronic manufacturing services firm the telecommunications and cloud reported by DigiTimes. Foxconn’s plant. It expects to grow its computing markets, Nokia aims to be business volume significantly. It has able to rapidly deliver custom Foxconn Leads Patent sold 40 million handsets in China so far infrastructure solutions to improve and expects its Indian business to grow operator time to market… InvenSense, Applications in 2015 similarly. Oppo is looking at producing Inc. (San Jose, CA), provider of Hon Hai Precision Industry (Foxconn) 10 million handset units per year in MEMS sensor platform solutions, topped Taiwanese companies in the India at its own plant. It will continue announced the extension of its strategic number of patent applications in 2015, its relationship with Foxconn as well. distribution agreement with Avnet, with 659, according to data released by Inc. (Phoenix, AZ), a technology the 7 Manufacturing Market Insider, February 2016 Sumitomo to Increase The Sumitomo group’s electronics SMTC Appoints Chief manufacturing services business is Electronic Parts Output expected to generate sales of about ¥110 Financial Officer in Southeast Asia billion for the year ending March 31, up SMTC Corporation (Canada) announced the appointment of Roger Sumitomo Corp. (Japan) will 10% from a year earlier. But Sumitomo Dunfield as Chief Financial Officer. expand southeast Asian contract suffered a group net loss in fiscal 2014, Mr. Dunfield is an experienced finance production of electronic parts amid weighed down by depressed earnings in executive with over 15 years of expected growth in demand resource operations, as reported by Asian experience in the manufacturing following the recent creation of a Review. industry. He joins SMTC from Sanmina regional economic community. Corporation, where he has been Sumitomo will form a joint Electronics Manufacturing employed as Vice President, Finance and venture this April in Poipet, a Cluster in Chhattisgarh Controller in Sanmina’s Interconnect Cambodian city bordering Thailand. Division since 2010. An existing venture with Alpine (India) Electronics that operates a Thai Under the Make in India initiative, the Publisher: Randall Sherman plant will take a 51% stake, while Indian government has proposed seven the Sumitomo group will own the greenfield manufacturing clusters—in Editor: Anna Reynolds rest. Naya Raipur (Chhattisgarh), Bhopal and Research Analyst: Vivek Sharma The Cambodian venture will Jabalpur (Madhya Pradesh), Bhiwandi lease a factory with about 1,000 (Rajasthan), Adityapur (Jharkhand), Board of Advisors: Michael Thompson, CEO, I. Technical Services; Ron Keith, square meters of floor space, with Karnool (Andhra Pradesh), and Falta CEO, Riverwood Solutions; Andy Leung, (West Bengal). two production lines set to start up CEO, VTech Holdings, Ltd. in October. A roughly 5,000-square- The proposed cluster in Chhattisgarh meter factory will be built three will have facilities for manufacturing Manufacturing Market Insider is a monthly years later, bringing total production LED lights, solar panels, tablets, mobile newsletter published by New Venture Research Corp., 337 Clay St., Suite 101, lines to about 10. phones, IT hardware, set-top box Nevada City, CA 95959. Phone (530) 265- electronics, and automotive electrical The project will cost around ¥2 2004, Fax (530) 265-1998. Copyright 2016 billion ($16.3 million). The initial parts. by NVR™. ISSN 1072-8651 workforce of about 50 will grow to An official spokesman said 11 investors an estimated 300 in a few years. have already signed memoranda of The information and analysis presented here are based on sources believed to be Sales of ¥4 billion are targeted in understanding (MOU) with the state reliable, but content accuracy is not government, proposing an investment to five years. guaranteed. The publisher shall not be held The facilities will produce the tune of Rs 9.3 billion in the upcoming liable for any business decisions influenced electronic parts such as circuit electronic manufacturing cluster, as by this publication. boards used in car navigation reported by the Times of India. E-mail: [email protected] systems. These will be sold mainly to Japanese manufacturers in Website: www.newventureresearch.com Thailand.

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