ALLIED ELECTRONICS • AMERICA II ELECTRONICS • ASTREX ELECTRONICS INC. • AVNET • BEYON • DIGI-KEY CORP • DIGI-KEY CORPORATION • FUTURE ELECTRONICS • IMPACT DISPLAY SOLUTIO ELECTRONICS • NEXUS ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELECTRONICS • SYMMETRY CORP. • TTI INC. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ALLIED ELECTRONICS • A ELECTRONICS • ASTREX ELECTRONICS INC. • AVNET • BEYOND COMPONENTS • DIGI-KEY CORP CORPORATION • FUTURE ELECTRONICS • IMPACT DISPLAY SOLUTIONS • MARCH ELECTRONICS • ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELECTRONICS • SYMMETRY ELECTRONICS CORP. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ALLIED ELECTRONICS • AMERICA II ELECTRON ELECTRONICS INC. • AVNET • BEYOND COMPONENTS • DIGI-KEY fromCORP • DIGI-KEY CORPORATIO ELECTRONICS • IMPACT DISPLAY SOLUTIONS • MARCH ELECTRONICS • NEXUS ELECTRONICS LLC NC. • SAGER ELECTRONICS • SYMMETRY ELECTRONICS CORP. • TTI INC. • VOYAGER COMPONE AMERICAS, INC. • ALLIED ELECTRONICS • AMERICA II ELECTRONICS • ASTREX ELECTRONICS INC. BEYOND COMPONENTS • DIGI-KEY CORP • DIGI-KEY CORPORATION • FUTUREglobalpurchasing.com ELECTRONICS • I SOLUTIONS • MARCH ELECTRONICS • NEXUS ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELEC SYMMETRY ELECTRONICS CORP. • TTI INC. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ELECTRONICS • AMERICA II ELECTRONICS • ASTREX ELECTRONICS INC. • AVNET • BEYOND COM KEY CORP • DIGI-KEY CORPORATION • FUTURE ELECTRONICS • IMPACT DISPLAY SOLUTIONS • M ELECTRONICS • NEXUS ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELECTRONICS • SYMMETRY CORP. • TTI INC. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ALLIED ELECTRONICS • A ELECTRONICS • ASTREX ELECTRONICS INC. • AVNET • BEYOND COMPONENTS • DIGI-KEY CORP CORPORATION • FUTURE ELECTRONICS • IMPACT DISPLAY SOLUTIONS • MARCH ELECTRONICS • ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELECTRONICS • SYMMETRY ELECTRONICS CORP. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ALLIED ELECTRONICS • AMERICA II ELECTRON ELECTRONICS INC. • AVNET • BEYOND COMPONENTS • DIGI-KEY CORP • DIGI-KEY CORPORATIO ELECTRONICS • IMPACT DISPLAY SOLUTIONS • MARCH ELECTRONICS • NEXUS ELECTRONICS LLC NC. • SAGER ELECTRONICS • SYMMETRY ELECTRONICS CORP. • TTI INC. • VOYAGER COMPONE AMERICAS, INC. • ALLIED ELECTRONICS • AMERICA II ELECTRONICS • ASTREX ELECTRONICS INC. BEYOND COMPONENTS • DIGI-KEY CORP • DIGI-KEY CORPORATION • FUTURE ELECTRONICS • I SOLUTIONS • MARCH ELECTRONICS • NEXUS ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELEC SYMMETRY ELECTRONICS CORP. • TTI INC. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ELECTRONICS • AMERICA II ELECTRONICS • ASTREX ELECTRONICS INC. • AVNET • BEYOND COM KEY CORP • DIGI-KEY CORPORATION • FUTURE ELECTRONICS • IMPACT DISPLAY SOLUTIONS • M ELECTRONICS • NEXUS ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELECTRONICS • SYMMETRY CORP. • TTI INC. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ALLIED ELECTRONICS • A ELECTRONICS • ASTREX ELECTRONICS INC. • AVNET • BEYOND COMPONENTS • DIGI-KEY CORP CORPORATION • FUTURE ELECTRONICS • IMPACT DISPLAY SOLUTIONS • MARCH ELECTRONICS • ELECTRONICSLEADERS LLC • PEI-GENESIS INC. • SAGER ELECTRONICS • SYMMETRY ELECTRONICS CORP. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ALLIED ELECTRONICS • AMERICA II ELECTRON ELECTRONICS INC. • AVNET • BEYOND COMPONENTS • DIGI-KEY CORP • DIGI-KEY CORPORATIO ELECTRONICS • IMPACT DISPLAY SOLUTIONS • MARCH ELECTRONICS • NEXUS ELECTRONICS LLC NC. • SAGER ELECTRONICS • SYMMETRY ELECTRONICS CORP. • TTI INC. • VOYAGER COMPONE AMERICAS, INC. • INALLIED ELECTRONICSDISTRIBUTION • AMERICA II ELECTRONICS • ASTREX ELECTRONICS INC. BEYOND COMPONENTS • DIGI-KEY CORP • DIGI-KEY CORPORATION • FUTURE ELECTRONICS • I SOLUTIONS • MARCH ELECTRONICS • NEXUS ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELEC SYMMETRY ELECTRONICS CORP. • TTI INC. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ELECTRONICS • AMERICA II ELECTRONICS • ASTREX ELECTRONICS INC. • AVNET • BEYOND COM KEY CORP • DIGI-KEY CORPORATION • FUTURE ELECTRONICS • IMPACT DISPLAY SOLUTIONS • M ELECTRONICS • NEXUS ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELECTRONICS • SYMMETRY CORP. • TTI INC. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ALLIED ELECTRONICS • A ELECTRONICS • ASTREX ELECTRONICS INC. • AVNET • BEYOND COMPONENTS • DIGI-KEY CORP CORPORATION • FUTURE ELECTRONICS • IMPACT DISPLAY SOLUTIONS • MARCH ELECTRONICS • ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELECTRONICS • SYMMETRY ELECTRONICS CORP. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ALLIED ELECTRONICS • AMERICA II ELECTRON ELECTRONICS INC. • AVNET • BEYOND COMPONENTS • DIGI-KEY CORP • DIGI-KEY CORPORATIO ELECTRONICS • IMPACT DISPLAY SOLUTIONS • MARCH ELECTRONICS • NEXUS ELECTRONICS LLC NC. • SAGER ELECTRONICS • SYMMETRY ELECTRONICS CORP. • TTI INC. • VOYAGER COMPONE AMERICAS, INC. • ALLIED ELECTRONICS • AMERICA II ELECTRONICS • ASTREX ELECTRONICS INC. BEYOND COMPONENTS • DIGI-KEY CORP • DIGI-KEY CORPORATION • FUTURE ELECTRONICS • I SOLUTIONS • MARCH ELECTRONICS • NEXUS ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELEC SYMMETRY ELECTRONICS CORP. • TTI INC. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ELECTRONICS • AMERICA II ELECTRONICS • ASTREX ELECTRONICS INC. • AVNET • BEYOND COM KEY CORP • DIGI-KEY CORPORATION • FUTURE ELECTRONICS • IMPACT DISPLAY SOLUTIONS • M ELECTRONICS • NEXUS ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELECTRONICS • SYMMETRY CORP. • TTI INC. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ALLIED ELECTRONICS • A ELECTRONICS • ASTREX ELECTRONICS INC. • AVNET • BEYOND COMPONENTS • DIGI-KEY CORP CORPORATION • FUTURE ELECTRONICS • IMPACT DISPLAY SOLUTIONS • MARCH ELECTRONICS • ELECTRONICS LLC • PEI-GENESIS INC. • SAGER ELECTRONICS • SYMMETRY ELECTRONICS CORP. • VOYAGER COMPONENTS • WPG AMERICAS, INC. • ALLIED ELECTRONICS • AMERICA II ELECTRON ELECTRONICS INC • AVNET • BEYOND COMPONENTS • DIGI-KEY CORP • DIGI-KEY CORPORATIO LEADERS2013 LEADERS PROFILE DIGI-KEY CORPORATION
igi-Key Corporation, a global Internet-based distributor of electronic WEB | digikey.com components, is an authorized distributor of more than 3.5 million TEL | 800.344.4539 Dcomponents from 650+ trusted suppliers. The company’s reputation extends worldwide as customers continue to choose Digi-Key, gaining access to the widest selection of electronic components in the industry, available for immediate shipment from its award-winning website, www.digikey.com. With this wide range of products, available in both design and production quantities, Digi-Key is the best resource for design engineers and buyers alike. The availability of products is one of the characteristics that dis- tinguish Digi-Key from other electronic component distributors. Digi-Key stocks over 975,000 products in an 800,000 square foot distribution center in Thief River Falls, Minnesota, USA. Every day, new products are added in a continuing effort to offer the full range of electronic components needed by customers. Whether semiconduc- tors, passives, interconnect, electromechanical, wireless, or lighting components, Digi-Key has the parts you need, when you need them. However, Digi-Key’s service does not stop with just shipping parts. The company offers a wealth of online tools and reference materials, in addition to providing 24/7 tech support. Digi-Key also offers numerous Supply Chain solutions such as bonded inventory and just in time shipping, as well as a newly updated BOM manager. Coupled with the widest BOM cover- age in the industry, Digi-Key is your total solutions provider for all your elec- tronic component needs. Digi-Key’s hybrid, “Prototype to Production®” business model offers customers a truly unique buying experi- ence. Supporting engineers through the entire design process, whether prototyp- ing, manufacturing small production runs, designing upgrades, or moving into full-scale production, is what truly sets Digi-Key apart. From Prototype to Production, Digi-Key has the necessary resources and products necessary to take your design to the next level! Learn more by visiting www.digikey.com.
DISTRIBUTION RESOURCE
LEADERS2013 In Distribution
TABLE OF CONTENTS
3 HIGHLIGHTING DISTRIBUTION’S LEADERS
6 TOP 50 DISTRIBUTORS: TALKING STRATEGY IN A YEAR OF MODERATE GROWTH
The Internet, the economy, and increasing regulatory issues dominated the Top 50 Electronics Distributors’ list of concerns for the year. 6
16 LOCAL FLAVOR SPELLS SUCCESS IN SOUTH AMERICA
Brazil remains the prime target as distributors expand in South America, using acquisitions and enhanced Web features to grow their customer base.
20 5 ISSUES SHAPING THE ELECTRONICS SUPPLY CHAIN
In 2014, electronics industry executives will look to emerging technologies for growth while focusing on student-centered investment opportunities and keeping counterfeit parts out of the supply chain. 16 26 GLOBAL BUSINESS CLIMATE BRINGS MANUFACTURERS, SUPPLIERS CLOSER
Supply-chain collaboration takes center stage as manufacturers seek growth in an increasingly global business environment.
32 THE TOP TRENDS TO WATCH IN ASIA
Despite some re-shoring activity and slowing growth, Asia remains the world’s low-cost manufacturing center and a key business target for electronics distributors.
38 U.S. DISTRIBUTORS SEEK SUCCESS IN EUROPE 20
Electronics distributors are expanding on the Continent despite ongoing economic weakness across the region.
44 SLOW RECOVERY STILL THE NORM
Electronics industry executives adjust to slower industry conditions as they look to new regions and expanding markets for electronic content as key growth drivers. 54 50 ADVERTISER’S INDEX 32
2 DISTRIBUTION RESOURCE Editorial VICTORIA FRAZA KICKHAM | DISTRIBUTION EDITOR [email protected]
Highlighting Distribution’s Leaders
elcome to Leaders in Distribution, our spe- And though many of today’s distribution leaders are large cial issue showcasing distributors—the vital companies, small and mid-market firms are leading the way Wlink in the supply chain that delivers prod- internationally as well. Our global distribution report on Asia ucts, services, and resources to design engineers and pro- includes a look at how small California-based distributor curement professionals. For this special issue we have gath- Amidon is expanding its business in Asia by establishing an ered top features from 2013’s Distribution Resource report, office in Hong Kong that will serve new and existing custom- our monthly supplement to Electronic Design that examines ers throughout the region. issues and trends facing distribution and the supply chain. In addition to geographic expansion, today’s leaders in dis- Each month, Distribution Resource gives Electronic Design tribution are grappling with a host of business challenges. We readers a glimpse at this segment of the design and supply outline many of these challenges in our Top 50 report analy- chain, with in-depth feature stories, product focus pieces, sis, but we also revisit the issue halfway through the year with and market outlooks on everything from defense to con- our Mid-Year Business Outlook, when we check in with some sumer electronics. of the Top 50 companies to see how the year is shaping up. We In these pages, you will find our top stories from 2013. We have included this special report here as well. begin with our annual Top 50 Electronics Distributors report. Rounding out the mix is a special report on design/ Published each May, this report ranks the top 50 electronics supply collaboration, in which we examine how engineer- distributors by sales volume and includes an overview story ing and purchasing teams are working closer together that assesses the state of the electronics distribution industry. to speed time to market, and an end-of-year report on First published in 2010, our Top 50 is refined and expanded five key issues shaping the electronics supply chain. The each year, keeping tabs on the largest companies in the indus- design/supply collaboration story examines the partner- try doing business in North America. ship between Avnet Electronics Marketing and its client Though our coverage is rooted in North America, today’s Sensuss, maker of sports-impact measurement products. distribution leaders are global in scope so we find ourselves Executives from both companies reveal how they have tracking the distribution landscape on a much larger scale. worked closer together earlier in the design process to To that end, we have included our 2013 global distribution ensure a seamless flow of products, technology, and infor- reports, which examine market trends in South America, mation. The end-of-year outlook report highlights some Europe, and Asia. Here, we take a look at Heilind Electron- of the key issues shaping the supply chain as identified by ics’ recent efforts to expand in South America via acquisition distribution leaders at the annual Electronic Components along with Mouser Electronics’ efforts to serve the Brazilian Industry Association Executive Conference, held each year marketplace through a well-established Portuguese-language in October. customer-service program. In Europe, we examine Mouser’s We hope you enjoy this special issue dedicated to today’s efforts to continue expanding across the continent as well as and tomorrow’s leaders in distribution. We welcome your Digi-Key Corp.’s new efforts to make inroads in Europe, the feedback, so please contact me (victoria.kickham@penton. Middle East, and Africa. com) with any questions, comments, or story ideas.
GO TO GLOBALPURCHASING.COM 3 LEADERS2013 LEADERS PROFILE AVNET: A GLOBAL LEADER IN DESIGN-CHAIN AND SUPPLY-CHAIN SERVICES
ere at Avnet Electronics Marketing, we are committed to accelerating our customers’ success. As the top distributor in Hthe industry, our role is much more complex than just driving efficiencies and cost cutting. We need to do much more than that, both for our supplier and for our customers. We serve as growth enablers, quickly identifying supply network problems and disconnects, and developing supply chain solutions that leverage Avnet’s technical expertise, global footprint, and virtual systems, so we can meet our customers’ time-to- market demands. Avnet was recently recognized by Gartner as a supply chain top 50 company, the only distributor on the list. We were evaluated for our multi-tier supply chain and cost-to-serve analytical capabilities. Avnet’s leadership in applying demand-driven principles to drive business results is testament to the value-added integration services we offer. CONNECTED. We have the industry’s broadest line card, most efficient and adaptable E-COMMERCE SOLUTIONS FROM AVNET global supply chain structure, and unparalleled technical offerings. Everything we do at Avnet is about forging new frontiers and promoting innovation. For example, part of our strategy for growth in 2013/14 includes paving the way for customers and suppliers to extensive education and training penetrate new markets and adopt emerging technologies, such as resources, including our SpeedWay™ high-brightness LEDs, renewable energy and smart power technology. design workshops, global X-Fest technical Through our Avnet Embedded division and Rorke Global Solutions series and ARM design seminar series, business unit, Avnet is in an excellent position to capture the growing help to demystify new technologies and demand for embedded technologies, particularly in IT infrastructure accelerate designs implementing cutting- in support of the cloud and mobile computing. Furthermore, our edge devices. It’s no wonder that the industry’s top global companies look to Avnet for results. As a global distribution leader with more than 90 years of supply management experience, as well as innovative, value- added services, Avnet can offer more than any competitor when it comes to reducing commercialization time, developing strategies for reducing costs, and delivering rapidly scalable, customized supply chain solutions.
TAILORED. AVNET SOLUTIONS MEET YOUR UNIQUE NEEDS
4 DISTRIBUTION RESOURCE TAILORED. AVNET SOLUTIONS MEET YOUR UNIQUE NEEDS
From big to small – we do it all.
Even big products begin small, with millions of sizes in between. We see them all. Here at Avnet, no order is too small. Avnet provides products and services to match your needs. No matter the location; whether you are in the new product introduction phase or extending a product’s life. If you need design support, or supply chain assistance – we’re here to help. With Avnet, you determine the scale of interaction – or complexity – and we will support you every step of the way, so it’s a perfect fit!
What can we do for you? www.avnetexpress.com
Accelerating Your Success!™ 1 800 332 8638 | www.avnetexpress.com | @avnetdesignwire LEADERS Top Distributors IN DISTRIBUTION VICTORIA FRAZA KICKHAM | DISTRIBUTION EDITOR [email protected] TOP Distributors Talk Strategy In A Year of Moderate Growth
The Internet, the economy, and increasing regulatory issues dominated the Top 50 Electronics Distributors’ list of concerns for the year.
he largest distributors of As they battle the sluggish con- electronic components in “I think this year is almost ditions here at home, electronics North America aren’t expect- as difficult for predic- distributors are also sharpening ing blockbuster growth this tions as last year,” says their focus on the Internet, watch- Tyear, but they do anticipate a slow Jimmy Seifert, senior ing the global economy closely and steady upturn in business by the vice president at Newark and trying to keep their fingers on time 2013 is over. Following a 2012 element14. “Growth esti- the pulse of an increasingly active in which many companies focused mates are in the single regulatory environment that has on internal investment and develop- digits, heavily leaned on customers placing new demands ment, this year is turning out to be the back half of the year.” on them almost daily. These regu- one of incremental growth and gain- lations have come to a head in the ing market share, with most compa- last year as the federal government has clamped down on nies predicting mid-single-digit increases for the year. contractors supplying electronic equipment to the armed “I think distributors spent 2012 working on their inven- services in an effort to curtail the flow of counterfeit parts tories, on their productivity, on their efficiencies,” says Faris into the defense supply chain. Government contractors have Aruri, vice president of corporate marketing for Sager Elec- naturally turned to their component suppliers for additional tronics, number 11 on SourceESB’s 2013 Top 50 Distributors levels of quality assurance. report (see the table). “Margin continues to be a challenge and I Despite these challenges, the top distributors are optimistic believe that companies devoted the bulk of the year addressing about the electronics industry’s long-term outlook, helped their structure, their strategy.” largely by the growing amount of electronics in all aspects of “I think this year is almost as difficult for predictions as last daily life. The proliferation of smart phones and other hand- year,” adds Jimmy Seifert, senior vice president at Newark ele- held gadgets combined with the ever-increasing “smartness” ment14, number six on this year’s list. “Growth estimates are of everything from refrigerators to cars and trucks makes the in the single digits, heavily leaned on the back half of the year.” electronics supply chain a good place to be, distributors say.
6 DISTRIBUTION RESOURCE GAME CHANGER: THE INTERNET and OEMs [original equipment manufacturers], and we really When asked about the greatest change in the industry since need to give some thought to Internet pricing. Otherwise, we last year’s Top 50 report, TTI’s Michael Knight doesn’t hesitate run the risk of creating a leak where there’s just a tremendous when he says “the Internet factor.” Though electronics distrib- amount of margin that can be sucked out of our business.” utors have been steadily increasing Newark element14’s Seifert their online investments and develop- “At Future, we’re very opti- agrees that the Internet is an indus- ment for the last several years, Knight mistic about this year. Last try game-changer, most notably for says 2012 stands out as a year of year was a year of invest- its value as a research and informa- heightened investment and growing ment, and we’re begin- tion tool. As more and more engi- struggles about how to best integrate ning to reap the benefits neers, hobbyists, and procurement the technology into the electronics of that investment,” says professionals search for products distribution model. The Internet’s Lindsley Ruth, executive online, distributors must be at the presence as a leveler and at the same vice president at Future ready not only with product and time a disruption makes it a force dif- Electronics. pricing information, but with the ficult to manage, he adds. resources, tools, and technical sup- “Last year, it seemed the Internet factor became more preva- port customers need to do their jobs, he explains. lent and more obvious,” explains Knight, senior vice president, “Just as the trend has exploded in the consumer world, it’s Americas for TTI, number four in this year’s report. He points becoming more prevalent in ours as well,” Seifert says. Chal- to new competition from non-traditional sources and dis- lenges aside, he notes that the trend fits well with the electron- tributors’ pursuit of new ways to best serve customers online ics distributor’s role as a provider of information and solutions. as key examples. He also points to pricing as a key challenge in “It really bodes well with how we go to market to support the Internet age. A lack of Internet resale pricing guidelines is a customer needs,” says Seifert, pointing to Newark’s element14 particular sticking point, and one the industry will eventually online community in particular, which functions as a profes- have to confront. sional social media outlet for engineers, offering product “The Internet is the place where people go to shop,” Knight explains. “I do think it’s a growing challenge for distributors (continued on p. 10)
THE METHODOLOGY BEHIND OUR SURVEY
THE SOURCE ESB staff and Penton Media’s research department began our 2013 Top 50 Distributors survey in February, contacting hundreds of North American electronics distributor locations via e-mail and via our online sister publication, Globalpurchasing.com. Throughout February and March, the staff narrowed the online submission forms to 50, ranking each company based on total sales volume and ensuring that each had a major presence in the North American electronic components distribution market. Each company in the list is ranked according to its total global sales volume, and all figures are reported in U.S. dollars. We used self-reported data from each company and verified the information against annual reports and earnings statements, where possible, as well as in follow-up interviews with some of the companies at the top of the list. Yet there’s more than meets the eye with some of the companies at the top of our list. Figures for Avnet Inc., ranked number one, and Arrow Electronics, ranked number two, include the sale of computer products, which comprise large segments of each company’s business. Other companies in the list also sell computer products along with electrical products and equipment. As a result, figures in the “active” and “I/P/E” categories may not add to 100% for each top-ranked distributor. Sales listed for privately held Future Electronics, number three, are based on SourceESB estimates. Figures for Allied Electronics, number four, reflect its worldwide sales as part of Britain-based Electrocomponents plc, which also operates RS Components in Europe. The figure here is a company-provided, fiscal-year estimate for global sales. Allied’s sales were roughly $420 million in 2012. Likewise, sales for number six, Newark element14, reflect worldwide sales as part of its parent company, Britain-based Premier Farnell. Our goal is to provide a comprehensive list of the largest electronic components distributors doing business in North America. We will begin compiling information for next year’s report early in 2014. We welcome your input as we develop next year’s Top 50 Distributors report. Send your questions or comments to sourceESBedi- [email protected].
GOGO TOTO ELECTRONICDESIGN.COMGLOBALPURCHASING.COM 77 LEADERS2013 LEADERS PROFILE ALLIED ELECTRONICS
llied Electronics, a subsidiary of Electrocomponents plc WEB | alliedelec.com (LES:ECM), is a small order, high service level distributor of EMAIL | [email protected] A industrial automation products, electronic components and TEL | 800.433.5700 electromechanical products with more than 50 sales offices across the FAX | 817.595.6444 United States and Canada. 7151 Jack Newell Blvd. S COMMITTED TO DELIVERING A GREAT EXPERIENCE Fort Worth, Texas, 76118 From start to finish, Allied is committed to delivering a great experience for customers. Allied understands that customers are more than an account number – they are people first and foremost.
PRODUCT SOLUTIONS With more than three million parts available at alliedelec.com, Allied is able to provide product solutions to a wide range of customers from all corners of industry and commerce. Engineers and purchasers often look to Allied for prototyping due to its broad range of product solutions from more than 300 world-class suppliers.
DEDICATED LOCAL SALES REPS Allied is the only components distributor with more than 50 sales offices across North America. Operating out of local sales offices, dedicated sales reps offer personal service to help customers get the products they need. THE ALLIED CATALOG The 2014 Allied Catalog features more than SERVICE WITH A HUMAN 110,000 products in eight major markets: TOUCH AT ALLIEDELEC.COM Test and Measurement, Interconnect, Customers can search more than Enclosures, Power, Automation and Control, three million products, check Optoelectronics, Passives and Actives, and real-time inventory, and access Assembly. Catalogs can be requested at more than 162,000 data sheets. alliedelec.com. The Allied website also offers product specs, express checkout, OPERATIONS and much more. Allied ships from its centrally located 300,000 square-foot distribution center in Fort Worth, Texas, and currently stocks approximately 150,000 SKUs. The distribution center uses RF technology to accommodate paperless pick and put-away processes, a streamlined system that allows for same-day shipping on orders placed up to 10 p.m. ET.
8 DISTRIBUTION RESOURCE TheThe OnlyOnly ThingThing Bigger ThanThan OurOur CatalogCatalog IsIs YourYour Imagination
20142014 Catalog Catalog
OverOver 115,000 115,000 products products | | OverOver 11,00011,000 newnew products | OverOver 300300 world-classworld-class suppliers suppliers Including new supplier – Panasonic Order your catalog at alliedelec.com/Catalog Including new supplier – Panasonic | |Order your catalog at alliedelec.com/2014Catalog
1.800.433.57001.800.433.5700
© Allied Electronics, Inc 2013. ‘Allied Electronics’ and the Allied Electronics logo are trademarks of Allied Electronics, Inc. An Electrocomponents Company. © Allied Electronics, Inc 2013. ‘Allied Electronics’ and the Allied Electronics logo are trademarks of Allied Electronics, Inc. An Electrocomponents Company. Top Distributors information, technical support, and online forums where they tough global economic climate they’re struggling against. can connect with peers. “I can’t see anybody being unhappy with the first quarter. Knight agrees that the collaborative spirit of the Internet I think it was much better than expected. But these are good offers a key opportunity for distributors to harness the tech- short-term trends. I’m unsure they’ll hold for the year,” says nology’s power. Sager’s Aruri. “The economic backdrop has improved margin- “How best to integrate the Internet into our business, which ally. It’s in an area you’d term stable versus robust. But even in is a more traditional model of people on people, that’s the this atmosphere there’s an opportunity to pick up market share question,” says Knight. “[We need to address] how best to inte- for those who really achieved something internally over the grate the Internet element in a way that’s good for our custom- last year.” ers, good for our suppliers, and truly additive to our business.” Lindsley Ruth, executive vice president for Future Electron- ics, which is number three on this year’s list, agrees. He says STRUGGLE: THE ECONOMY 2012 was an investment year for Future and that the company For many distributors, 2013 has been a year of pleasant sur- is already seeing the benefits of that internal focus this year. prises. Most entered the year expecting little by way of growth “At Future, we’re very optimistic about this year. Last year and were surprised by better than anticipated bookings in the was a year of investment, and we’re beginning to reap the ben- first quarter. Although few pointed to the quarter as a defini- efits of that investment,” Ruth explains, noting investments in tive indicator of the year overall, most of the Top 50 remain new salespeople, inventory, and customer-focused programs cautiously optimistic about the industry outlook given the around supply chain management and e-commerce. “We’re seeing an uptick in demand, so we’re gain- ing confidence as we go. We’re looking at a 2013 TOP 50 DISTRIBUTORS year in the supply chain that will be up in the high single digits to low double digits.” 2012 global Ruth points to customer-relationship Company % active* % I/P/E* sales revenue management as another key investment area for Future Electronics. Salespeople 1. AVNET INC.1 $25.2 billion 43% 8% are trained to focus on building rela- 2. ARROW ELECTRONICS INC.2 $20.4 billion 66% 20% tionships and streamlining operations 3 3. FUTURE ELECTRONICS $7.4 billion N/A N/A throughout the channel, for instance. 4. TTI INC. $1.6 billion 41% 54% “We like to move from a pure transac- 5. ALLIED ELECTRONICS INC.4 $1.5 billion 5% 45% tional relationship with the customer to 6. NEWARK ELEMENT145 $1.5 billion 12% 50.4% more of a true partnership [in which we] 7. DIGI-KEY CORP. $1.4 billion 46% 54% share resources and help the customer 8. MOUSER ELECTRONICS $615.3 million 66% 34% increase their business,” Ruth explains. 9. DAC/HEILIND $584.6 million 0% 100% “If we can help the customer with their 10. N.F. SMITH & ASSOCIATES, LP $465 million 59% 11% customer, we’re adding more value than 11. SAGER ELECTRONICS $217 million 0% 100% the competition.” Looking at particular markets, many of 12. PEI-GENESIS INC. $214 million 0% 100% the Top 50 say they anticipate continued 13. AMERICA II ELECTRONICS $210 million 75% 24% growth in the automotive industry, resur- 14. MASTER ELECTRONICS $163 million 0% 0% gence in the medical markets, and growth 15. POWELL ELECTRONICS INC. $120 million 0% 100% in the aerospace segment, particularly 16. BISCO INDUSTRIES INC. $116.3 million 1% 10% commercial avionics. This will be offset 17. RAND TECHNOLOGY INC. $104 million 40% 10% by a downturn in military and defense, 18. FLAME ENTERPRISES $98.2 million 0% 100% according to some. Smaller niche market 19. ELECTRO ENTERPRISES INC. $81.3 million 0% 100% distributors such as Sager are capitalizing 20. ELECTRO SONIC INC. $70.5 million 6% 67% on the trends. 21. BEYOND COMPONENTS/NEDCO $60.3 million 0% 100% “Sager focuses on the industrial, medical, and instrumentation markets,” 22. HUGHES-PETERS $60 million 3% 95% explains Aruri. “All of these markets have 23. EDGE ELECTRONICS INC. $56.3 million 67% 9% been either stable or growing, and I’m $50.6 million 1% 42% 24. STEVEN ENGINEERING confident in our ability to pick up market 25. SYMMETRY ELECTRONICS $46.1 million 99% 0% share in this environment.”
10 DISTRIBUTION ELECTRONIC RESOURCE DESIGN For larger players such as Avnet, 2013 TOP 50 DISTRIBUTORS who cast a wider net, the outlook 2012 global is a bit more complex. Ed Smith, Company % active* % I/P/E* sales revenue Americas president for Avnet Elec- tronics Marketing, characterizes 26. CPN/DENELEX GROUP $41 million 0% 100% 2013 as steady and “not very excit- 27. IBS ELECTRONICS INC. $40 million 45% 45% ing.” Despite the tough market 28. ASTREX ELECTRONICS INC. $36.6 million 0% 100% conditions, Avnet remains number 29. HAMMOND ELECTRONICS $36 million 2% 91% one on SourceESB’s Top 50 for the 30. COMMODITY COMPONENTS $30 million 0% 60% third straight year. Smith points to INTERNATIONAL INC. strength in automotive and aero- 31. DEE ELECTRONICS INC. $23.4 million N/A N/A space industries and slowing con- 32. AIR ELECTRO INC. $23.4 million 0% 0% ditions in military/defense markets 33. PUI (PROJECTIONS UNLIMITED INC.) $23.3 million 12% 88% this year. 34. SMD INC. $22.8 million 5% 95% “When I look at the industrials, I 35. CRESTWOOD TECHNOLOGY GROUP $22.3 million 34% 54% think they’re still pretty flat and not (CTG) very exciting—and in the Americas, 36. HOUSE OF BATTERIES $22 million 0% 100% we’re driven by that,” Smith says. “So, 37. PHOENICS ELECTRONICS $20.3 million 85% 0% [conditions] are not very exciting, CORPORATION but there are some glimmers of hope 38. MARCH ELECTRONICS $20 million 0% 100% in automotive and aerospace.” $19.3 million 0% 85% Regionally, Avnet has seen growth 39. KENSINGTON ELECTRONICS INC. in Mexico as customers begin to 40. COMPONENT TRENDS $15.1 million 65% 20% move manufacturing business from 41. 4 STAR ELECTRONICS INC. $15 million 50% 40% 42. CUMBERLAND ELECTRONICS STRATEGIC Asia back to the Americas, Smith $15 million 20% 60% adds. The re-shoring trend has been SUPPLY SOLUTIONS the topic of much industry buzz in 43. AREA51-ESG INC. $14.1 million 48% 22% the last year, and many say it’s unfold- 44. COMPONENTS CENTER $13 million 0% 100% ing more slowly than they’d hoped. 45. IXES USA $12.9 million 80% 15% Large independent distributor N.F. 46. VIRGINIA ELECTRONIC COMPONENTS $12.7 million N/A 10% Smith & Associates, number 10 on (VEC LLC) this year’s list, expanded its opera- 47. ADVANTAGE ELECTRIC SUPPLY $10.5 million 50% 2% tions in Guadalajara, Mexico, last 48. EAST COAST MICROWAVE DISTRIBUTORS $10 million 100% 0% year to accommodate increased busi- 49. MARINE AIR SUPPLY $10 million 0% 100% ness among its manufacturing cus- 50. INDUCTORS INC. $9.6 million 0% 100% tomers in the region, for example. Company COO Matt Hartzell points * Percentages may not add to 100; see methodology 3 SourceESB estimate to rising wages and housing costs in 1 Figure includes sales of computer products 4 Company-provided fiscal year estimate China in particular as a key reason 2 Figure includes sales of computer products 5 Figure reflects worldwide sales for Premier Farnell, some manufacturers are beginning to Newark, element14 move or consider moving some man- ufacturing operations back toward North and Central America. and shipping in North America that yesterday was booking “You might see a continuation of that if labor and real estate and shipping in Asia or somewhere else. But I do have reason prices continue to climb in China,” he says. to believe it is coming. And that has good long-term implica- For others, re-shoring is still a distant trend they hope is tions for our economy and our industry.” soon realized. TTI’s Knight says the issue is still more talk than reality among his customers, but adds that he thinks such NEW WRINKLE: REGULATORY ISSUES opportunities will eventually materialize. Counterfeit components and the need for quality assurance “I am watching out for it like a hawk,” Knight says. “I’m is a growing concern among the Top 50 distributors. The issue reading a lot about it. In our own business we’re aware of some transcends the authorized/independent line as customers seek customers who are talking about doing it, but I can’t say I can actually yet put my finger on a piece of business that is booking (continued on p. 50)
GO TO GLOBALPURCHASING.COM 11 LEADERS2013 LEADERS PROFILE
TTI, INC.
THE SPECIALIST IN ELECTRONIC COMPONENT DISTRIBUTION
ore than 40 years ago, TTI set out to be the leading, authorized distributor of interconnect, passive, Mand electromechanical components. Broader and deeper inventory, leading-edge products and custom supply chain solutions have established TTI as the preferred specialist in electronic component distribution. Today TTI employs 3,800 people in more than 100 locations around the globe.
PEOPLE AND PARTS At TTI we understand that people are the foundation of PAUL ANDREWS, FOUNDER AND CEO our success and critical to exceeding our customers’ expectations. We have found that if we do the right thing product introduction knowledge to their for our employees, they will in turn do the right thing for our customers in a timely manner. customers’ and our suppliers – and our business will continue From new product design, through end of to grow. life, and particularly around procurement and TTI operates a low turn/high service inventory model, put materials management, TTI works closely simply, we are committed to maintaining upward of 70 with customers’ engineering, purchasing percent of inventory available to sell. Added to this is an ethos and materials planning departments to align of stocking product families broad and deep; this describes supply chain and logistics solutions with our the company’s mission to stock the slower moving, more customers’ objectives. customer specific components as well as the A & B movers FOLLOWING A PATH TO offered by everyone - which is why TTI is known to offer a CONTINUOUS IMPROVEMENT leading inventory position, with an authorized line card of Acquired by Berkshire Hathaway in 2007, TTI premier suppliers. remains an industry leader of highest integrity KNOWLEDGE IS KEY striving always toward the goal set by founder Having a local sales force and product team with supplier and CEO Paul Andrews, to be the best, not the and product knowledge is a benefit for buyers and engineers biggest. This charter has propelled the company alike. Keeping up with new product introductions and into its fifth decade as a trusted partner to detecting those that customers worldwide. are most relevant can be like surfing the Internet – the information is there, but it takes more time than you have to sort through it all. Our local teams are dedicated to disseminating new
12 DISTRIBUTION RESOURCE
LEADERS2013 LEADERS PROFILE AMERICA II ELECTRONICS
WEB | www.americaii.com TEL | 800.767.2637
About America II
stablished in 1989, America II Electronics stocks nearly four billion components, mak- Eing it one of the world’s largest independent distributors of semiconductors and electronic com- ponents. Headquartered in St. Petersburg, Florida and with offices in the UK, Germany, China, Japan, Singapore and Mexico, America II stocks compo- nents from 1,900 manufacturers, while providing in-house testing, value-added services, and excess purchasing solutions from its ISO 9001:2008 and ESD-certified 420,000 square foot North American distribution facility.
AMERICA II’S BLENDED DISTRIBUTIONSM
OUR BLENDED DISTRIBUTIONSM model positions America II as an Our global purchasing team sources components innovative distributor who serves as a primary partner for all OEM from thousands of approved suppliers to secure hard- and EMS companies, providing a channel that supplies hard-to-find to-find and allocated parts. This helps to create an components, delivers inventory via our direct manufacturer relationships, inventory of more than 165,000 unique parts valued and ensures the highest level of quality assurance. at approximately $1 billion. In addition, a large portion of our inventory comes direct from manufacturers. For customers who need to buy from a distributor with direct relationships, America II has partnerships with hundreds of manufacturers. Lastly, America II continues to be a leader in quality assurance. Together, our in-house test facility, component engineers, 10-year guarantee, and team of 59 IDEA ICE-3000 professional inspectors are unmatched in the industry. By doing these things, America II has blended the traits of the independent channel with those of franchise distribution. This allows us to create a completely unique experience for our customers. It is truly the best of both worlds. So customers have the ability to find everything they need — no matter what their requirements are — right here at America II.
14 DISTRIBUTION RESOURCE We Found the Sweet Spot
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800.955.5302 www.americaii.com/dr LEADERS Emerging Markets IN ELECTRONICS VICTORIA FRAZA KICKHAM | DISTRIBUTION EDITOR [email protected]
LOCAL FLAVOR SPELLS SUCCESS IN SOUTH AMERICA Brazil remains the prime target as distributors expand in South America, using acquisitions and enhanced Web features to grow their customer base.
eilind Electronics’ 2012 purchase of Brazilian Their team has expertise in importing product and building that distributor Kotek Eletro Electronica gave the into their cost model. We needed somebody that had a formula interconnect specialist immediate access to hun- in place that was built along [Brazil’s] taxation laws.” dreds of new customers and entry into a growing Business leaders agree that Brazil’s complex import/export Heconomy that company leaders say is a key part of their global and tax structure is a challenge to doing business in the coun- growth strategy, which began in earnest in 2011. try, pointing to how quickly those rules can change, in par- Kotek’s 10-year history serving customers throughout ticular. And although all the major large distributors do busi- Brazil meant immediate insight on navigating the country’s ness in the region, many go to market as exporters, serving complex regulatory and tax environment, ensuring a profit- the region from locations elsewhere in Latin America or the able business model from the start, says Brandon Clountz, United States. Heilind’s South regional manager, covering the southern Unit- Those with local offices and warehouses have done so large- ed States, Mexico, and South America. That kind of insight ly by acquisition or by pursuing value-added strategies that can mean the difference between success and failure in a help ease the financial burden of importing products—servic- region where knowledge of local rules, regulations, and busi- es such as repair, refurbishment, and recycling; supply chain ness culture is at a premium. management; testing; system configuration; and more. Avnet “Listening very carefully to our customers and supplier part- Electronics Marketing, a prime example, has been expanding ners over the past several years was foundational in developing steadily in Brazil. Last year, it added to its service business our strategic expansion plans, including our entrance into Bra- with another technology integration center in the region that zil,” says Clountz, pointing to an underlying message that the serves its embedded business customers as well as original company’s service model, interconnect focus, and commitment equipment manufacturers and others. to inventory in North America would fill a void in the Brazil- Despite the challenges of doing business in South America, ian marketplace and will play a key role if it is to be successful. distributors remain especially focused on the opportunities “[Brazil] is a tight-knit market. You really need a localized, of the Brazilian marketplace. Heilind’s recent move to grow incorporated company to do business there. Kotek gave us that. in the region is a pointed example, but others are finding new
16 DISTRIBUTION RESOURCE reasons to enhance their presence there as well. Clountz points tion that Heilind comes up against in North America and to the country’s growing middle class and the resulting need elsewhere. Online strategies are winning big with Brazilian for the infrastructure and technological comforts to support customers, as large catalog houses like Digi-Key and Mouser it. He says he expects Brazil to provide a steady source of Electronics continue to invest heavily in their websites to growth for Heilind now and down the road. reach customers around the world. Mouser, in particular, has a steady focus on Brazil with its A RETURN TO GROWTH Portuguese-language customer service program. The dis- Growth in the Brazilian economy slowed in 2012, but tributor has a team of native Portuguese speakers, all Brazil- local officials say the country is poised for more growth ian, who work out of the United States to support its Brazil- this year, with government leaders promising late in 2012 to ian customers. The program complements the distributor’s take action that will ensure more sustainable growth going Portuguese-language website. forward. Growth slowed to around 1% last year, following Although South America represents a small portion of nearly 3% expansion in 2011, when the country surpassed Mouser’s business, it is a fast-growing segment, says Steve the United Kingdom to become the sixth largest economy Newland, vice president of sales and service for the Americas. in the world. “There really is an unmet demand in those markets for our Heilind wanted a piece of that action and put South America value proposition,” says Newland, pointing to Mouser’s focus at the top of its aggressive global expansion strategy. In addi- on getting design engineers the newest and widest variety of tion to Brazil, the company has expanded in China recently, products in no-minimum order quantities. “That message looking to bring its interconnect expertise to a worldwide really resounds with that group as it does in other regions.” audience. The company is projecting healthy growth in Brazil Mouser serves South American customers from branch- this year, buoyed by the addition of new connector products to es in Mexico and the U.S., but is investigating opening a previously limited line card in the region, an expanded sales branches in Argentina and Brazil as well. Newland says most force, and larger warehouse space. customers in the region come to Mouser “If you stock the product, the cus- “There really is an via the Web, however, so the current local- tomers are going to come,” says Clountz, unmet demand in language website and complementary adding that Brazilian customers are no those markets for Portuguese-language customer service different than those that Heilind serves our value proposi- aspects of the business model continue to elsewhere in the world with their need tion,” says Mous- make sense. Going forward, Newland and for good service and reliable delivery. er’s VP of sales U.S.-based Latin American sales manager “We serve second-, third-, and fourth- and service for the Mauro Salomao say they expect the Web tier customers really well. They look Americas, Steve to continue to drive growth, especially as for service and inventory at a relatively Newland. electronics-related business increases in competitive price. They need inven- the region. tory, and we have the ability to do that “The globalization of the economy is bringing new projects for them.” into the territory,” says Salomao, a native Brazilian who has Clountz says local customers are also looking for advice on worked with Latin American customers for 20 years. design and sourcing options. “That allows us, as a specialist, But how much of that new business will turn into design to utilize and harness the technical support we have to make opportunity? The design engineering market in South Amer- those recommendations,” he adds. ica is smaller than it is in Europe and Asia, Newland says, Kotek-Heilind sells to a wide range of customers in Brazil, although he points to large pockets of opportunity in Brazil. including industrial, consumer, electronics, telecommunica- The design engineering community remains Mouser’s focus, tions, and the automotive industry, all of which are new to so the company continues to follow that business wherever Heilind and local to the Brazilian economy. it grows. “Prior to the past year, the Brazilian economy had been “The driver for us is new design and development in the exploding,” Clountz says. “If they can continue to add jobs and region. Brazil is a multi-national economy, so there’s a lot of rework some of their tax laws, we expect solid growth in this design activity that goes on there, but there’s an equal amount market for the next five to 10 years. We are very enthusiastic that goes on outside of Brazil as well,” says Newland. about Brazil.” “There is opportunity there,” he adds. “It’s a little harder to get at than other regions of the world, but we’re not afraid of THE WEB’S THE ANSWER it. You need to get in there, target the market, and get to know In evaluating the competitive landscape, Clountz puts it it to succeed. And all told, we have quite a bit of resources at 50-50: 50% local distribution, 50% traditional competi- focused on that part of the world.” Q
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%ULQJLQJ 2XUSULRULW\LVWRJURZ\RXUEXVLQHVV :KHQLWFRPHVWRVHUYLFHH[FHOOHQFH ZHJLYHRXUFXVWRPHUVFRPSOHWHFRQÀGHQFH www.FutureElectronics.com 1-800-FUTURE-1 LEADERS Looking Ahead IN DISTRIBUTION VICTORIA FRAZA KICKHAM | DISTRIBUTION EDITOR [email protected] 5 ISSUES SHAPING THE ELECTRONICS SUPPLY CHAIN In 2014, electronics industry executives will look to Wearable technology, 3D printing, and robotics emerging technologies for growth while focusing are three emerging technologies that supply-chain on student-centered investment opportunities and companies should focus on in 2014, said author and futurist Jack Uldrich of the School of Unlearn- keeping counterfeit parts out of the supply chain. ing. (photo by Curtis Ellzey) show of hands at an electronic components vations have been elusive in today’s flat market. Still, companies industry meeting in October confirmed what should keep some key product trends on their radar screens, said many executives are feeling as 2013 comes to Jack Uldrich of the School of Unlearning on the first day of the a close: the flat to only slightly up business conference. conditionsA that have characterized the electronics supply chain Wearable technology is one area. Uldrich told attendees that for the last two years are going to stick around for a while. Only it “absolutely could be” a huge market in the not-too-distant about a third of the executives listening to an economics pre- future, pointing to the wearable computer Google Glass as an sentation at the Electronic Components Industry Association’s example. The convergence of wearable technology and mobile Executive Conference in Chicago in late October raised their health monitoring is another big area, according to Uldrich. He hands when asked if they thought their companies would finish noted a wide range of fitness and health-monitoring devices, 2013 with higher sales than 2012. such as the FitBit activity tracker, a wireless-enabled wearable This is new to an industry in which growth tends to outpace device that measures a range of personal health metrics. Uldrich the general economy, and it’s leaving many looking for new also cited 3D printing and GE’s goal to produce jet engine parts strategies that will help them better compete in a changing busi- using the technology by 2016, as well as robotics, a hot area for ness climate. ECIA’s annual conference tackled the issue with the U.S. manufacturers. theme “Shift Happens” and presented a slate of speakers from “This technology is getting exponentially better,” Uldrich inside and outside the industry offering insight on how manu- said of 3D printing in particular. facturers and distributors of electronic components can navigate the change and still meet buyers’ and design engineers’ growing 2. THE INTERNET OF THINGS list of demands. The Internet of Things is all about connectedness—con- The ECIA audience of distributors, manufacturers, and man- necting people, processes, and things to the Web. It’s a growing ufacturer representatives covered a big slice of the electronics opportunity for companies of all kinds, according to Uldrich marketplace. Presenters discussed everything from new market and Intel’s Rick Dwyer, who also spoke at the ECIA conference. opportunities to honing your supply-chain niche. Their advice To put it in perspective, Dwyer said that as of late October, provided a roadmap of where component suppliers will be there were 10.7 billion people, processes, and things connected looking for growth and offers a glimpse at areas the supply chain to the Internet—an impressive installed base of potential busi- of the future will focus on. Here are five of them. ness that will only grow. The key to capitalizing on this potential is figuring out how to sell the services and solutions people need 1. EMERGING TECHNOLOGY to enable their projects, programs, and ideas, Dwyer said. Component suppliers are always looking for “the next big “What can we do differently to capture the value of the Internet thing” that will shake up the electronics industry, but such inno- of Things?” he urged companies to ask. He also described oppor- 20 DISTRIBUTION RESOURCE tunities in the Smart Grid as a prime example, as utility companies tions. The teams are charged with building a robot that can look for new ways to manage and analyze energy use and spend- perform a specific task in a series of competitions held across the ing, opening the door for companies that sell devices and technol- country. Corporate sponsors play a large role in supplying the ogy that will allow them to do so in an online environment. electronic components, tools, and other products students need to build their robots. 3. HONING YOUR NICHE Balz emphasized the need for industry involvement in the In a presentation focused on business evolution and the impor- program by telling his compelling story. A motocross rider with tance of maintaining a “culture that cares and values that matter,” a 2.7 grade point average, Balz had little interest in academics Steve Fisher, CEO of Philadelphia-based specialty distributor until one of his teachers asked him to join his school’s FIRST PEI-Genesis, recounted his family-owned firm’s evolutionary program in his sophomore year. He quickly became a team journey from a small startup distributor of electronic parts to leader, and before he was out of high school he had founded one of the world’s leading assemblers of precision connectors and Freedom Chairs, a non-profit organization that recycles and power supplies. rebuilds powered wheelchairs for people in Founded in 1946 by Fisher’s father, Mur- need of mobility. The 18-year-old is presi- ray Fisher, and his best friend Bernie Bern- dent of Freedom Chairs, which is staffed baum, PEI-Genesis has been honing its by a team of student volunteers from Balz’s niche as an international manufacturer, alma mater, Plainfield High School. assembling distributor, and engineering “[FIRST] turned my life around,” Balz design firm for connectors and power sup- told attendees. “It inspired me to try hard- plies ever since. But today’s difficult eco- er in school. I knew I couldn’t become an nomic times are presenting new challenges. engineer with a 2.7 GPA.” After years of consistent growth, Fisher said Balz finished with a 3.65 GPA. PEI-Genesis has struggled to grow over the last 18 months. But he advised that tough 5. STANDING UP TO COUNTERFEITS times are an opportunity to look in the mir- Despite recent efforts to reduce the ror and ask if you are still relevant and then 2. “[FIRST] turned my life around. It inspired threat of counterfeit electronic compo- make the changes necessary to remain so. me to try harder in school. I knew I couldn’t nents entering the market, the situation Careful evaluation of business trends become an engineer with a 2.7 GPA,” engi- is not getting much better, according to and internal capabilities has led PEI- neering student Tim Balz told attendees at Avnet’s Ed Smith, who made the subject a Genesis to its place as a high-mix product an electronics industry conference in late centerpiece of his presentation. Smith, who business that builds more than 10 million October. (photo by Curtis Ellzey) is president of Avnet Electronics Market- connectors a year, Fisher explained. He ing Americas, warned of a misunderstand- emphasized that changing with the times while holding on to ing among customers about the meaning of authorized distri- the values of its founding fathers will be a driving force in the bution and called for a campaign to educate buyers about the company’s ongoing evolution. dangers of sourcing components from the open market. Although counterfeit parts can find their way into authorized 4. INVESTING IN THE FUTURE distributors’ inventory through customer returns, independent In one of the most inspiring presentations of the ECIA event, distributors and brokers represent the greatest threat because and the only one to receive a standing ovation, teenager Tim they do not purchase components directly from the original Balz explained how the FIRST science and technology program manufacturer. Many independents specialize in obsolete and changed his academic life and put him on the path to becoming hard-to-find parts and invest in testing and purchasing pro- an engineer and entrepreneur. His talk served as a wakeup call grams designed to detect counterfeits and keep them out of the about the importance of investing in students to ensure a more supply chain, but only authorized distributors receive compo- successful electronics industry in the future. nents directly from original component manufacturers. Balz is a freshman at the Rose-Hulman Institute of Technol- Smith discussed efforts by authorized distributors to address ogy in Indiana. Yet he said he wouldn’t be there if it weren’t the counterfeit problem, including supply-chain management for FIRST—For Inspiration and Recognition of Science and programs, design support, product obsolescence programs, and Technology, a program that encourages elementary, middle, and aftermarket support designed to help customers avoid turning high school students to develop their science, engineering, and to the open market. He also said it’s time to hold customers technology skills through teamwork and competition. accountable for their role and urged new regulations that hold Schools throughout the country form FIRST teams that are buyers responsible for purchasing counterfeits by making it a sponsored by teachers, community volunteers, and corpora- criminal offense. GO TO GLOBALPURCHASING.COM 21 LEADERS2013 LEADERS PROFILE IMPACT DISPLAY SOLUTIONS ',63/$<<2850(66$*(:,7+,03$&7 :(% ,PSDFW/&'FRP ,03$&7',63/$<62/87,216LVDVSLQRIIRI,PSDFW&RPSRQHQWV (0$,/ 6DQ'LHJR&DOLIRUQLDDVXSSOLHURITXDOLW\HOHFWURQLFFRPSRQHQWVDQG LQIR#LPSDFW/&'FRP VHPLFRQGXFWRUVVLQFH ,PSDFWRZQVDQGRFFXSLHVDVTXDUH IRRWIDFLOLW\LQ6DQ'LHJR¶V6RUUHQWR9DOOH\7HFK&HQWHU 7(/ ,PSDFW'LVSOD\6ROXWLRQVDVVLVWVRXUFOLHQWVE\RIIHULQJFRPSRQHQWVDQGFRPSOHWH VROXWLRQVHQDEOLQJWKHPWRRSWLPL]HWKHSUHVHQWDWLRQDQGIXQFWLRQRIWKHLUSURGXFW)URP QDPHEUDQGGLVSOD\VWRKLJKTXDOLW\FRQWUROOHUVFDEOHVDQGDFFHVVRULHVIURPLQGXVWU\ OHDGHUVOLNH,QQR'LVSOD\PRWKHUERDUGVIURP)XMLWVXDQGHQKDQFHPHQWVOLNH7RXFKVFUHHQV 2SWLFDO&RDWLQJV%RQGLQJDQG6XQOLJKW5HDGDEOHVROXWLRQV,PSDFWSURYLGHVWKHVWULNLQJ YLVXDOLPDJHU\DQGIXQFWLRQDOIHDWXUHVWKDWFXVWRPHUVGHPDQG,PSDFWHQJDJHVFOLHQWV DWDQ\VWDJHRIWKHLUSURMHFWDQGKDVGHVLJQSXUFKDVLQJDQGVXSSO\FKDLQSURJUDPVWKDW HQDEOHH[WHQGHGSURGXFWOLIHF\FOHVDQGDVVLVWDQFHLQWKHHYROXWLRQRIWKHLUSURGXFWV NHHSLQJWKHPRQWKHFXWWLQJHGJHRIWHFKQRORJ\6XSHULRUGHVLJQDQGGHYHORSPHQW FDSDELOLWLHVFRPELQHGZLWKDJJUHVVLYHSULFLQJLQVXUHKLJKOHYHOVRIFOLHQWVDWLVIDFWLRQ ,PSDFWLVH[SHULHQFHGLQPDQ\YHUWLFDOPDUNHWVPHHWLQJWKH YDVWDQGFRPSOH[UHTXLUHPHQWVIRUGLVSOD\LQJGDWD,PSDFW GHVLJQVFDQEHIRXQGRQWKHEDWWOHILHOGLQGXVWULDOVKRSIORRUV PHGLFDORIILFHVDLUFUDIWFDELQVDQGFRFNSLWVFDVLQRVNLRVNV DQGYLUWXDOO\HYHU\ ZKHUHLQIRUPDWLRQLV GLVSOD\HG&DUHIXOO\ VHOHFWHGVXSSOLHUV HQDEOH,PSDFWWR 2QHVXFFHVVIXOUHGHVLJQLVDGHYLFHUHTXLULQJDKLJK EHDYDOXDEOHVRXUFH UHVROXWLRQ/&'DQGLQGXVWULDOIUDPHDQGODSWRS(QGRI IRU/&'GLVSOD\V OLIHDQGUHFHUWLILFDWLRQLVVXHVFUHDWHGDFKDOOHQJH,PSDFW RSHQIUDPHV\VWHPV ZDVDEOHWRHOLPLQDWHWKHODSWRSDQGKHDY\IUDPHDQG DQGDSURYLGHURI LQFRUSRUDWHDSRZHUIXOPRWKHUERDUGZLWKD\HDUURDGPDS LQWHJUDWHG&XVWRP LQWRDOLJKWZHLJKWIROGLQJDOXPLQXPIUDPH7KHLQWHJUDWHG 7XUQNH\VROXWLRQV XQLWKDVDEULOOLDQWKLJKUHVGLVSOD\DQGLVZHOOXQGHUEXGJHW 6DQ'LHJR&$ -DFNVRQYLOOH)/ /DV9HJDV19 7RURQWR&$1 22 DISTRIBUTION RESOURCE LEADERS2013 LEADERS PROFILE BEYOND COMPONENTS TO THE OTHER SIDE OF ORDINARY )L`VUK*VTWVULU[ZPZHUH[PVU^PKLKPZ[YPI\[VYVMLSLJ[YVUPJZ LSLJ[YVTLJOHUPJHSWYVK\J[Z:PUJL ^L»]LILLU VU[OLJ\[[PUNLKNLVM[OLPUK\Z[Y`Z\WWS`PUNV\YJ\Z[VTLYZ ^P[O[OLSH[LZ[[LJOUVSVNPLZ>LJHYY`TVYL[OHUWYVK\J[ JH[LNVYPLZPUJS\KPUN;LYTPUHSISVJRZ9LSH`Z:^P[JOLZ-HUZ 3,+Z +PZWSH`Z*PYJ\P[)YLHRLYZ*VUULJ[VYZ,409-0-PS[LYZ 7V^LY:\WWSPLZ;YHUZMVYTLYZ(\[VTH[PVU;LJOUVSVNPLZ 4V[VY*VU[YVSZHUKTVYL BEYOND AT-A-GLANCE -YHUJOPZLK^P[OTVYL[OHU SPULZ KPZ[YPI\[PVUJLU[LYZUH[PVU^PKL 7YVK\J[^HYYHU[PLZ -HJ[VY`LUNPULLYPUNZ\WWVY[ 0TWLJJHISLJ\Z[VTLYZLY]PJL ,)5;VW KPZ[YPI\[VYJVUZLJ\[P]L`LHYZ A PEOPLE COMPANY )L`VUK*VTWVULU[Z»WLVWSLHYLZWLJPHSWLVWSL>OLUL]LY >LHSZVOH]LZ[LHKMHZ[I\ZPULZZL[OPJZHWOPSVZVWO`PM`V\ ^LOPYLZVTLVULUL^^LZ[HY[I`L]HS\H[PUN[OLPYJOHYHJ[LY ^PSS[OH[ZL[Z\ZHWHY[MYVTHSSV\YJVTWL[P[VYZ^LYLMLY[VP[ ]HS\LZL[OPJZL[J>LILSPL]LHSSHYV\UKNVVKUH[\YLKWLVWSL HZ6\Y*YLKV! 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See many more gifts we offer at beyondc.com/promos.html Tel / 800-971-4242 www.beyondcomponents.com [email protected] LEADERS Supply Chain IN DISTRIBUTION VICTORIA FRAZA KICKHAM | DISTRIBUTION EDITOR [email protected] GLOBAL BUSINESS CLIMATE BRINGS Manufacturers, Suppliers Closer Supply-chain collaboration takes center stage as manufacturers seek growth in an increasingly global business environment. artnership, transparency, and visibility are key words in today’s global business world as manufacturing companies seek to forge even closer relationships with their suppliers. Collaboration has long been the mantra of distributors as they seek to become Pindispensable parts of their customers’ operations. However, a recent report on the state of manufacturing points to a heightened spirit of partnership across the supply chain today as manufacturing organizations dig deeper into their supplier relationships for innovation, ideas, and long-term planning. The change may signal a new wave of cooperation that will bring businesses closer together even as they reach further around the world to accomplish their goals. “Companies are adopting a number of strategies to stay ahead of the curve, including a deeper emphasis on collaboration with partners and suppliers in the search for new ideas,” according to the 2013 Global Manufacturing Outlook report from consulting firm KPMG International, released in May. The report points to a new wave of benefits that “will be the most dramatic yet, with a new spirit of partnership, transparency and visibility across the value chain creat- ing enormous economic value from a technology-enabled, demand-driven supply chain,” explains Jeff Dobbs, KPMG’s global sector chair for diversified industrials. The trend is not lost on the electronics supply chain, which offers a focused look at the growing spirit of collaboration identified in the KPMG report, par- ticularly as distributors and customers forge stronger design/supply collabora- tion strategies. A pointed example of this is an announcement earlier this year from small manufacturing firm Sensuss on the release of its new sports-impact measure- ment products. Sensuss credits its seven-year relationship with distribution partner Avnet Electronics Marketing as a key part not only in bringing the products to market but also in helping to ensure the long-term success of a startup company. “We were looking to buy parts and Avnet filled that void for us. The rela- tionship has ballooned from there,” says Jeff Lawson, CEO of Sensuss, which 26 DISTRIBUTION RESOURCE launched its S2 and S3 sports impact measurement products this Such activities are a crucial part of the Sensuss/Avnet rela- summer. Both use a combination of Analog Devices sensors, tionship. Both Lawson and Avnet EM account manager Stan NXP microcontrollers, and a EuroTech Helios aggregator that Marszalek point to the companies’ close collaboration from uses Intel-based technology. design through to production, which includes not only tech- “We were surprised at how quickly we became more than nical support on the design side but also special supply chain just a customer, and that was so important to us. We were not logistics programs that balance end-market forecasts with looking for a ‘just quote me the price on 10,000 of these and I’ll supplier lead times and other key issues to ensure a seamless go to the next person next time’ type of relationship. We were flow of products and support services. looking to find a close working relationship with a supplier “[Sensuss] needed a solid roadmap. When we sat down with and we evolved to that really quickly,” he says. Jeff, we talked about the business requirements from proto- Sensuss’ S3 is a helmet-based or glove-based device that type, to production, to next generation, to costs, logistics, and monitors impacts, capturing the information, using machine- so forth,” explains Marszalek. “We have a centralized, focused to-machine (M2M) technology to transmit and store the data, team for both technical and logistics support, so we’re there to and cloud-based applications providing real-time assessments provide the entire support package, from early design support that can protect the athlete from further potential harm. The now moving into production and [going forward].” S2 is a translucent helmet-based device that lights up when an Lawson characterizes it as a higher-level partnership than athlete experiences a pre-defined level of impact, immediately what may have occurred in years past. sending an alert that a critical event may have occurred. “‘Supply chain’ is really the wrong word, from our perspec- Both products were rolled out this summer, and Sensuss’s tive,” Lawson says. “What we were looking for was not supply goal is to penetrate the youth sports market with technology chain. The old word is that sergeants talk supply but generals that can help prevent traumatic brain injuries (TBIs). Nearly 4 talk logistics. We needed the logistics to replenish our stock, million mild traumatic brain injuries (MTBIs) or concussions align ourselves with technology, to figure out the vendors we are reported each year due to impacts in sports and recreation- needed to be with, to target our product to market and to pro- al activities, according to the Centers for Disease Control. vide service. That’s what Avnet provided.” Lawson says he and his colleagues at Sensuss understood early in the process that they needed strong supply chain IDEAS, NOT JUST SUPPLY partners to help them achieve their goal to design at home and Looking ahead, both Lawson and Marszalek say the part- manufacture anywhere in the world for what they predict is a nership will grow, especially in light of its forward-thinking large and growing market. nature. They say they have taken next-generation activity into “One of the keys to choosing a supplier was that we needed account from the start of the project, for instance, planning for someone who had the right roadmap for all of the key prod- a continuous and rapidly evolving product cycle. ucts [that we needed],” explains Lawson, pointing to Avnet’s “I think it’s easy to think about this in a singular format: we ability to bring together technical experts and key component had this idea, we designed this product, and now we’re taking it manufacturers early in the design process. “Very early on, we to manufacture,” says Lawson. “But we’re doing so much more made a conscious decision to do a single point of contact for than that. We’re focusing on next-generation activity now. all of the [bills of materials]. We said, ‘we want you to stock for We’re also in the stages of redesigning on two separate fronts. our forecast, deliver the products we ask for to us here [in the Our design team is different from our manufacturing team and United States], but also deliver them anywhere that we stipu- Avnet is interfacing with both. So, it’s a never-ending cycle. late in the world.” In this product portfolio we have a tremendous need to stay ahead of the rapid-turn cycle. So we need to align ourselves FORGING STRONGER CONNECTIONS with the right suppliers and line everything up to meet our According to the KPMG report, today companies view their roadmap.” channel partners as more of a network critical to achieving a Lawson echoes another key point from the KPMG 2013 “demand-driven” supply chain, one that provides a real-time Global Manufacturing Outlook: that, increasingly, compa- view to total demand, supply, and capacity information. nies are placing the supply chain at the center of their strate- “For companies of all sizes, genuinely closer working rela- gies to innovate. tionships between suppliers and other partners will be critical “Many companies are starting to see their suppliers as a to maximizing their responsiveness to changes in the market,” source not just of production and logistics but also of ideas,” the report points out. “More effective and efficient collabora- the report says. “Half of our survey respondents say that part- tion enables firms to optimize inventory, logistics and other nerships, rather than in-house efforts, will characterize the operational costs.” future of innovation.” GO TO GLOBALPURCHASING.COM 27 LEADERS2013 LEADERS PROFILE SYMMETRY ELECTRONICS CORP. Symmetry Electronics, founded in 1998, is a global authorized distributor focused on the sale, technical support and distribution of wireless, audio/video, and embedded products. Symmetry’s expertise helps engineers lower costs and reduce time to market. NOT JUST ANOTHER DISTRIBUTOR Symmetry’s philosophy is simple: focus on innovative semiconductor products and the markets that need them. Their vast industry expertise shines through in many market segments. Industrial and building automation, M2M, medical, metering, security and surveillance, digital signage, Audio Codecs Antennas APUs, SoCs, CPUs broadcast, automotive, consumer goods, and military and aerospace are just a few examples of markets in which Graphics Processors M2M / IoT Discrete Graphics Cards Symmetry excels. Transcoders RF Modules / ICs Sensors Video Processors RFID Single Board Computers Each product on the Symmetry line card is a result of much time and consideration to ensure that it best meets the needs of the customers the company serves. The technical sales team goes through extensive factory and in-house product In addition to its traditional distribution model, Symmetry training, enabling them to provide guidance and support in makes semiconductor research and online purchasing simple all phases of the design cycle. with its informative, easy-to-understand, and award-winning ecommerce site. SemiconductorStore.com is not just a part number directory, but is also a valuable resource of the most current datasheets, custom selector guides, application notes, reference designs, whitepapers, and a vast library of supporting documents for all sorts of design projects. The same way Symmetry is a technical support resource, SemiconductorStore.com is a vibrant technical knowledge base and ecommerce platform that is easy to navigate and constantly updated. Symmetry Electronics has built its reputation and its business on providing the superior service and support that their customers expect and deserve. Whether it’s browsing the latest technology online, solving a complicated technical problem, or tracking shipment, Symmetry customers get precisely what they need the first time and every time. A custom “In-A-Box” development kit designed by Symmetry’s in-house technical support division that includes hardware, software and technical documentation. Available online at SemiconductorStore.com 28 DISTRIBUTION RESOURCE LEADERS2013 LEADERS PROFILE SAGER ELECTRONICS A PROUD TRADITION OF INNOVATION AND SERVICE WEB | sager.com EMAIL | [email protected] GROUNDED IN over 125 years of innovation and service, Sager Electronics is TEL | 1.800.SAGER.800 (1.800.724.3780) a North American electronic component distributor of IP&E products. Sager FAX | 1.800.268.8001 has built its business on integrity, service and adaptability, and our Distributing Confidence® business model goes beyond fulfillment to provide a unique 19 Leona Drive combination of operational excellence and innovative business solutions. Middleborough, MA 02346 SIZE, SCOPE AND LEVERAGE Today’s customers require increased support. Suppliers are operating with fewer channel resources and manufacturing representatives face greater demands. Sager offers personalized services like bonded inventory programs, VMI, BOM quoting, credit and inventory management to meet your critical requirements. Sager’s network of field sales professionals, our team of inside sales representatives, and our system of service centers are strategically located across the United States, Canada and Northern Mexico to provide a comprehensive level of service. Our field application engineering With a concentration on the medical, industrial team is a resource for and instrumentation markets, Sager has carefully manufacturers’ design built a line card to service the IP&E requirements intense products in the of these OEMs in North America. Ranked as power management and a top three distributor for nearly two-thirds of distribution, filtering and the suppliers on our line card, we have the circuit conditioning, and knowledge and leverage to help you identify and thermal management areas. procure the best in IP&E products while offering best in class service. Sager has the size, scope and leverage to be your complete solution. 125 YEARS AND COUNTING In 2012, Sager was acquired by TTI Inc., a Berkshire Hathaway Inc. company. As a wholly owned subsidiary of TTI Inc., Sager continues to operate as it always has – with the same level of service and commitment and the added strength of TTI Inc. and Berkshire Hathaway Inc. 30 DISTRIBUTION RESOURCE responsiveness reliability control ownership endurance listening access innovation speed trust initiative Sager Electrical Supply, Congress St., Boston, MA. performance respect We’ve been distributing confidence discipline the same way since 1887. competition One customer at a time. value depth Technology changes. The ability to adapt, cost-effectively and clout confidently doesn’t. Our products have kept pace with the times. Our service has also evolved... tried, tested, and improved time and time again. We have built a agility reputation for providing solutions, not just fulfilling orders. Field sales representa- tives and application engineers who listen and know your business can help grow your business. We deliver expert, pro-active advice, and support your time-to- execution market issues with a quick, well-qualified response. Competence creates confidence. Sager continues to give your company that one timeless competitive edge. Contact service your local service center or Sager sales representative at 1.800.SAGER.800 or visit us at www.sager.com. Sager. Distributing Confidence.® Sager Electronics is a wholly-owned subsidiary of TTI Inc., a Berkshire Hathaway Inc. company. © 2013 Sager Electronics 19 Leona Drive, Middleborough, MA 02346-1404 LEADERS Trends in Asia IN DISTRIBUTION VICTORIA FRAZA KICKHAM | DISTRIBUTION EDITOR [email protected] GLOBAL DISTRIBUTION 5 TRENDS ASIA:TO WATCH Despite some re-shoring activity and slowing growth, Asia remains the world’s low-cost manufacturing center and a key business target for electronics distributors. merican manufacturers and distributors are still the compound annual growth rate really is somewhere in the betting on Asia to remain the world’s leading 1.5% to 2% ballpark depending on the region.” low-cost manufacturing center despite slowing Wu points to rising labor rates, government efforts to update growth in the region and industry talk about the infrastructure, the expiration of certain tax benefits, and efforts “re-shoring”A of projects back to North America. Supply-chain to impose stricter environmental regulations as some reasons companies continue to invest in Asia, seeking new opportuni- for the slower growth. But he adds that those conditions are not ties and expanding existing operations—particularly in China, enough to keep Asia, and especially China, from maintaining which analysts predict will continue to see the lion’s share of the its status as the world’s leading low-cost manufacturing center. region’s manufacturing activity. “Does this mean that China won’t be the world’s factory any- Electronics distributors are making the most of these oppor- more?” Wu says clients often ask. “Our answer is no.” tunities with enhanced services, new locations to better serve Steve Martin, president of U.S.-based distributor Compo- customers in the region, and a focus on developing more nimble nents Direct, agrees. Components Direct specializes in manag- global supply chains. Market leaders say that focus is especially ing manufacturers’ excess and obsolete components and does crucial as manufacturers place increasing importance on the more than 50% of its business with customers in Asia. It has a “design anywhere, build anywhere” philosophy, which benefits warehouse in Hong Kong, with sales and service handled online those suppliers that can serve them in multiple locations around through its e-commerce business. the world. Still, whether they have served customers globally “I think Asia is going to be a growing market,” Martin says. for years or are just starting to build an international presence, “The facts and figures are that it’s down and becoming more distributors selling in Asia are observing five key trends that are competitive, but I think that for a lot of companies—especially shaping the local business landscape. for a lot of North American companies—there’s a lot of poten- tial in the Asia market.” 1. SLOWING BUT STILL GROWING Distributors doing business in Asia say growth is slowing, 2. CHINA MAINTAINS ITS LEAD but they still point to the region as a good long-term source of For companies looking for a low-cost manufacturing strat- business for those supplying the range of manufacturing oper- egy, Asia is still the place to go, with China at the top of the ations there, especially contract manufacturers. IHS senior list. Aside from the cost benefits that can be realized on many analyst Jeffrey Wu concurs, pointing to a slowdown across the projects, the region’s now well-established manufacturing and entire outsourced manufacturing business in Asia since the supply chain centers are business attractors as well. 2008-2009 recession. “It’s really about design anywhere and build anywhere, [and “What we see happening in Asia is [that] growth has slowed the trend] happens to be Asia today,” says Alex Iuorio, senior vice down compared to five years ago,” says Wu. “Then, [you had] president of supplier marketing for Avnet Electronics Marketing. 5% compound annual growth. Now, between 2012 and 2017, Iuorio emphasizes the region’s importance by pointing to the 32 DISTRIBUTION RESOURCE migration of manufacturing work within Asia, specifically the 4. OPTIMIZED SUPPLY CHAINS ARE A MUST movement away from coastal regions to inland China and some Avnet’s Iuorio points to supply-chain optimization as a key movement to other countries such as Malaysia and Vietnam. issue, especially as it relates to the “design anywhere, build any- “[It’s about] what makes the most sense for a particular where” strategy. He says much of the world’s design work is still customer,” Iuorio explains, noting that other trends such as done in the West, and as production moves East, the situation begs regionalized manufacturing—in which companies build prod- for an optimized supply chain—one in which manufacturers, dis- ucts closer to where they will be consumed—and local market tributors, and customers have the technology, logistics, and infra- demand are additionally coming into play. structure to serve customers efficiently, anywhere in the world. IHS’s Wu agrees, emphasizing domestic demand as a key to “You’re going to see a much more robust supply-chain infra- the region’s ongoing strength. structure built in those areas of the world to take advantage of “[In the last five years], products being built in China are being the optimized supply chain and, just as importantly, to mitigate driven by an ever-increasing demand in the domestic market,” he risk,” says Iuorio, pointing to Avnet’s 300 locations in 70 coun- explains. “Ten years ago, the majority of product output was used tries. “What we do is couple the design chain with our supply for export. We don’t have exact figures, but we’re seeing that Chi- chain so customers can design anywhere and build anywhere.” nese market demand is driving production in China to a much Hand in hand with that, manufacturers are paying closer more significant degree than it did five to 10 years ago.” attention to their “real and total” costs these days, which is Julie Yuan, managing director of specialty distributor Ami- affecting their decisions to manufacture some products in don, agrees that China will remain the region’s top low-cost regions close to where they will be consumed. manufacturing center for some time. Although there are proj- “We’re seeing more of a discerning view of what the real and ects that are going to Vietnam and Thailand, she notes that there total costs are and what makes sense for an individual custom- has not been a mass exodus of work to other countries. er,” says Iuorio. “There is no question that we’re seeing many, “It’s not enough to disrupt the flow of contract manufacturing many [companies] manufacture in the Asia-Pacific region to China,” she says, adding that she also sees a growing contract closer to where they think end demand will be.” manufacturing base that does specialized work due to better, more consistent quality in the region. Amidon is expanding its 5. GROWING DEMAND FOR SPECIALTY SERVICES business in Southern China, most recently by opening an office As customers move production to China, many distributors are in Hong Kong this past fall. moving to Asia. As Yuan explains, Amidon’s move to Hong Kong this fall is a result of careful research among existing customers 3. MIGRATION TO INLAND CHINA in the region and management’s belief that there is a growing As Avnet’s Iuorio points out, more manufacturers are mov- need for the specialized services Amidon provides. Amidon is a ing to inland China, and that will create new infrastructure and specialty distributor of ferrites, iron powder cores, and custom supply-chain challenges over the next few years. inductors/transformers focusing on small-quantities, typically “You get there because of the low-cost workforce, and now working with purchase orders that range from $50 and up. you have an inherent problem—roads, transportation [and so “We think there are more people out there that don’t have an forth],” says Iuorio. “That will drive infrastructure, which will in outlet for these small quantity [buys],” says Yuan, noting her turn drive supply-chain processes. It makes sense to me that the existing contract manufacturing customers as well as potential biggest changes [ahead] will be around supply-chain services as it customers in the region who may be missing out on smart buy- relates to global customers moving their manufacturing to Asia.” ing opportunities because they simply don’t have the staff or Wu agrees, adding that the migration will result in new manu- resources in the region to find them. Amidon can help not only facturing clusters in China, which should also help drive growth. by supporting smaller projects, but also by seeking opportuni- “What’s happening now is… there are a few distinct clusters ties that require a backup source of components. in China. [As] they move production inland, there are newer “It’s something we’ve noticed over time,” says Yuan. “Through hubs,” Wu says, pointing to local supply chains that have devel- the years of dealing with our customer base there, we’ve found oped in China over the last 15 to 20 years that make it difficult that there may be more of a need for our services.” for manufacturers to move elsewhere, especially to higher-cost The company has office space and some staff in the region, countries under the guise of “re-shoring.” mainly outside sales. Asia represents about 8% of Amidon’s “We still believe that a shift to the U.S. is symbolic,” adds Wu, overall sales now. The move to expand internationally is aimed pointing to companies such as Apple and Motorola who have at helping this small company grow in what continues to be a announced that they will build or assemble some products back challenging economic environment. on U.S. soil. “Despite program shifts back to the U.S., we do not “We have really been struggling with the idea of whether to see that kind of formation of manufacturing clusters or supply bring on more lines or find other avenues of expansion,” she chain clusters all over again in the U.S.” says. “This is one of many ideas we’re hoping to execute.” Q GO TO GLOBALPURCHASING.COM 00.00.13 ELECTRONIC DESIGN33 LEADERS2013 LEADERS PROFILE NEXUS ELECTRONICS LLC DISTRIBUTION THE NEXUS WAY FLEXIBILITY AND A customer first mentality is what has propelled Nexus Electronics to the forefront of electronic component and automotive wiring harness distribution. We pride ourselves on our “human interaction” with our customers and will never abandon our roots, but to better serve your needs; we have also launched a fully featured E-commerce site. Now you can get your products and information on-line or the traditional way, the choice is yours. AUTOMOTIVE, ELECTRONIC COMPONENTS AND CONNECTOR SUPERIOR MANUFACTURERS for many high profile OEMs and CEMs, but are NEXUS ELECTRONICS LLC partners with the top manufacturers of automotive versatile enough to offer the same services and interconnect, electromechanical, and electronic hardware from around the expertise to our smaller OEM’s. world to deliver only quality products to our customers. We have over 400 Million SKU’s in our supply chain from leading manufacturers like Yazaki, SUPERIOR SERVICE Sumitomo, Delphi, Deutsch, Bosch, FCI, JST, TE Connectivity, Molex, just Nexus only employs professionals with years to name a few. We follow only the most stringent quality standards for the of experience in our industry and seek individuals inspection and handling of all types of material in our 50,000 square foot North with the same “customer first” mentality. We American warehouse. understand our success is dependent on providing quality information and material in a SUPERIOR SOURCING timely manner. We use that to philosophy to build Nexus Electronics LLC works with their customers to locate hard to and strengthen our relationship with you to ensure find, obsolete, or long lead time products using our certified domestic and mutual success. international partners. Our current sourcing capability is backed by skilled sales personnel with several combined decades of experience who are continually increasing their knowledge about products, inspection, packaging requirements, value added services, and the ever changing needs of our customers. Nexus is well respected by our customers and in our industry for being an expert in sourcing all types of material. We are a preferred vendor INDUSTRY BEST WARRANTY WE WANT TO earn your business and your trust, and to prove that, we stand behind every product we sell and offer an industry best 52 week warranty on all of our products. 34 DISTRIBUTION RESOURCE Buy Online or Call Today! www.nexelec.com 714.245.0700 Trusted Source for Electronic Components Millions of Parts In Stock Thousands of Manufactures Carried Source all hard to find Circuit Board Level Electronics And Wire Harness Assembly Components Have Surplus? Contact Nexus today for a free evaluation LEADERS2013 LEADERS PROFILE ASTREX ELECTRONICS INC. strex Electronics, a specialized, value-added ASTREX ELECTRONICS, INC ASTREX ELECTRONICS, INC distributor of high reliability interconnect 205 Express Street 3910 Royal Ave Aproducts and services is a qualified small Plainview, NY 11803 Simi Valley, CA 93063 business and is AS9100-2009 certified. For over EAST COAST SALES WEST COAST SALES 50 years, our strategic focus has been to apply our TOLL FREE | 800.633.6360 TOLL FREE | 800.238.4626 knowledge and technical support to create real FAX | 516.433-1796 FAX | 805.582-1444 world military, aerospace, medical, and industrial Diane Vighi, Sales Manager Jim Clarizio, Sales Manager interconnect solutions. EMAIL | [email protected] EMAIL | [email protected] At Astrex our depth of knowledge enables us to offer attentive service, Custom VMI solutions and fast answers to technical questions. AVIATION - Astrex, a recognized leading supplier to the OUR PRODUCTS, OUR MARKETS Aerospace industry, offers a full range of harsh environment SPACE - Astrex offers a full range of space connector products for the aviation industry. Applications level products designed to meet the rigorous such as Hydraulics, Avionics, In Cabin Lighting, Galley, environmental requirements used in space Entertainment Systems, Fuel and Ground Support equipment applications. Our space connector line includes are typical. filtered/non-filtered D-Subminiature, MIL-DTL-38999 Our worldwide presence allows us to locally support all Series III connectors and a complete line of fiber major aerospace manufacturers. channel connectors and contacts. Additionally, we are the exclusive distributor for Hypertronics NASA MEDICAL - Astrex offers high-reliability interconnect solutions to approved Compact PCI connectors. the medical industry that are used extensively in areas where These connectors meet requirements for reliability is essential to the well-being of a patient. outgassing, toxicity, flammability concerns, shock Our medical product offerings include contacts, and vibration and high/low temperature. We hold connectors and RF cable assemblies which are being IPC certification J-STD-001 Space addendum for used on Implantable devices, MRI, Digital Imaging, our engineered RF cable assemblies. Electrophysiology Catheters, Defibrillators, Patient monitoring equipment, and Ultrasound equipment. MIL-AERO - Astrex is a global leader in the design, manufacture ġ and supply of high performance interconnect solutions to the Military/Aerospace manufacturers for naval, land, and air Cannon systems applications. From commercial airlines to new generation military aircraft, ė our offering of interconnect solutions are used extensively ,QGXVWULDO on all Military and Aerospace systems where reliability is absolutely mandatory. The Astrex Advantage is our commitment to service and our 48 HOUR DELIVERY on value – added connectors! Please hd^, visit Astrex.net for the extensive list of Mil-Spec connectors that we offer. ,1&21 Global RF Solutions 36 DISTRIBUTION RESOURCE GIVING YOU THE ADVANTAGE. The Astrex Advantage is experience. For over 50 years, our strategic focus as a specialized, value-added distributor of interconnect products and services has enabled us to create military, aerospace, medical and industrial solutions to support our customers’ requirements. Our depth of knowledge enables us to offer fast answers to technical questions and attentive personalized service. The Astrex Advantage includes: •Extensive Inventories: ISO-9001:2008 certified, we maintain an extensive component inventory which enables us to quickly custom build an extensive array of military, industrial and harsh environment connectors. • Superior Value-Added Capabilities: We are a fully authorized distributor and value-added assembler of the world’s finest high reliability connectors. WE OFFER 48-HOURS TURNAROUND ON ASSEMBLED CONNECTORS. • Custom Formed Semi Rigid Cables • Phase Matched Cables • Precision Low Flexible Semi Rigid Cable • Phased Controlled Assemblies • UL Recognized Wire Harnesses • Custom Delay Lines • Certifications: ISO-9001:208, EN/JISQ/AS9100:2009 • Conformance: MIL+45208A, MIL-Q-9858A, AnSI/NCSL Z540-I, Ul Certified Astrex Electronics is the most respected source for the finest quality interconnect products and services. www.astrex.net LEADERS European Market IN DISTRIBUTION VICTORIA FRAZA KICKHAM | DISTRIBUTION EDITOR [email protected] U.S. DISTRIBUTORS SEEK SUCCESS IN EUROPE Electronics distributors are expanding on the Continent despite ongoing economic weakness across the region. lthough the Eurozone economy continued to suf- EUROPE’S ROLE fer this past spring, with more weakness expect- That message rings true in Europe, which remains Mouser’s ed ahead, U.S.-based distributors remain unde- fastest-growing region, according to Mark Burr-Lonnon, who terred in their efforts to grow across the region. heads the distributor’s operations in Europe, the Middle East, ManyA are capitalizing on ongoing design activity throughout and Africa (EMEA). Mouser grew 20% in EMEA last year and the area while others are growing their production-related is on track to grow another 25% this year, Burr-Lonnon says. business and seeking to build a more global footprint overall. He credits the company’s focus on new product introductions A handful of those companies spent time at this year’s Elec- and customer recruitment as keys to that success. tronics Distribution Show in Las Vegas emphasizing their Mouser has been rounding out its supplier mix, adding 24 global footprint and outlining plans for growth in Europe. new suppliers since January alone while focusing its market- Mouser Electronics, which has grown considerably in Europe ing efforts on attracting new customers. Mouser adds nearly over the last few years, is one. Company leaders pointed to its 700 customers per day, with 38% of them coming from Europe strength as a global operation during the conference, which and Asia, leaving plenty of opportunity to build the brand in brings together manufacturers, distributors, and manufac- those regions, Burr-Lonnon adds. turer representatives. Mouser president Glenn Smith pointed “We have carved a niche with design engineers, focusing to its record growth in every region in the first quarter of 2013, on new products,” Burr-Lonnon says. “We’re one of the few emphasizing its 19 locations, technical support, customer ser- guys out there not growing into production [business]. We are vice, and marketing personnel worldwide. where we want to be in Europe and Asia.” “Think of us as a global operation that needs to be aligned Those positive sentiments come despite Europe’s ongoing with your global marketing teams,” Smith told an audience of economic crisis. The Eurozone’s gross domestic product fell mostly suppliers during a company update meeting at EDS. at an annualized rate of 0.9% during the first three months 38 DISTRIBUTION RESOURCE of this year, marking the sixth straight quarter of a recession right product on time all the time” as a premium value in that began late in 2011. Although economic conditions have the marketplace. improved elsewhere around the world—GDP grew 2.5% in “Digi-Key is in the inventory business,” Beeson explains. the United States, 2% in the United Kingdom, and 3.5% in “Our goal is to never let the customer go down.” Japan during the first quarter—analysts held out little hope that Europe would experience anything resembling a recovery STRENGTHENING TIES this year. As a result, U.S. distributors are focused on building Texas-based distributor Allied Electronics is taking a dif- their brands with a new audience and capitalizing on existing ferent tack when it comes to globalization, but Europe figures design and production work throughout the region. prominently in its approach as well. Owned by Britain-based Electrocomponents plc, Allied is a sister company to Britain- EXPANDING THEIR REACH based RS Components, which does business across Europe Minnesota-based distributor Digi-Key Corp. is also looking and around the world. The two companies are working to to Europe for growth, although with a different focus. Digi- strengthen their ties, aligning their product portfolios globally Key has long served design engineers around the world, but is and taking advantage of being on a single enterprise resource building business with larger production accounts by placing planning (ERP) system. new resources in Europe. Earlier this year, Digi-Key estab- “We have two very strong brands, and our intention is to be lished an EMEA sales leadership team and added a customer a stronger global force,” says Phil Dock, global head of product support center in Munich to serve customers in those regions. and supplier management for Electrocomponents plc. The distributor also said it will announce more resources cov- Allied spent much of 2011-2012 upgrading to the SAP plat- ering the Nordics, Baltics, and Eastern and Southern Europe form that RS Components was already using. Now the com- by early summer. panies are leveraging the strength “We’re responding to customer Mark Burr-Lonnon, who that’s behind that unified system to demand for a distribution model that heads Mouser’s distri- create more supply chain visibility supports today’s changing global busi- butions in Europe, the and enhance customer-facing ser- ness climate,” Chris Beeson, Digi-Key’s Middle East, and Africa, vices such as design tools, bill of vice president, global sales and business credits the company’s materials management, and quota- development, said when the changes focus on new product tion and ordering systems. were announced in March. “By recruit- introductions and cus- But before they can take full ing experienced sales leaders, we can tomer recruitment as advantage of those capabilities, more quickly build the Digi-Key brand, keys to its success. the companies must work to bet- increase our traditional business, and ter align their product portfolios, support larger production business accounts with one-on- which company president Scott one support.” McLendon says consist of just a 10% overlap in materials now. Digi-Key’s Europe-based team is divided into four focus Though Allied and RS have many of the same suppliers, the areas: EMEA and Asia Pacific; Israel and Russia; the United product mix looks different around the world. Kingdom and Ireland; and Central Europe. The team supports “In the next five years, our goal is to have a pretty common a roster of 41,000 EMEA customers and is working to spread [product] range around the world, somewhere around 75% com- the word about Digi-Key to other design engineers and pro- mon portfolio and the remaining 25% left up to local [needs],” duction buyers across each region. McLendon said in an interview earlier this year. “This allows Expansion in Europe is a key part of Digi-Key’s strategy to you to leverage your supply chain better, leverage your demand, build out its hybrid distribution model, adds Beeson. Produc- make your global inventory visible to your customer base … and tion accounts represented about 33% of Digi-Key’s $1.4 billion then you build your service proposition around that.” in sales in 2012, he says, adding that he expects the production RS Components conducted a similar exercise to unify its side to hit $615 million in sales this year. Europe’s growing product offering across Europe a few years ago, resulting in a production business represents a small slice of that $615 mil- £30 million sales increase within 24 months. Global availabil- lion, at just about $50 million in business today, leaving plenty ity can also help on the local level. As OEMs design and build of room for growth. Beeson adds that he expects the produc- their products in multiple regions, visibility into where the tion business to exceed $1 billion in the next few years. inventory is and how quickly they can access it in a particular Digi-Key’s focus on developing the supply chain tools location becomes even more important. necessary to serve those customers is a key reason for that “The best global companies look local,” says McLendon. optimism, but Beeson also points to the distributor’s dedi- “There are certain things you can leverage globally, but at the cation to inventory and its commitment to delivering “the end of the day all business is transacted locally.” Q GO TO GLOBALPURCHASING.COM 39 LEADERS2013 LEADERS PROFILE PEI-GENESIS, INC. WEB | peigenesis.com 2180 Hornig Road TEL | +1 215.673.0400 Philadelphia, PA 19116 LEADERS IN VALUE-ADDED SERVICES FOR CONNECTORS & POWER WHO IS PEI? EI-Genesis is one of the 15 largest electronic component distributors in the world. A privately-held company in Pbusiness since 1946, PEI-Genesis is an international manufacturer, assembling distributor, and engineering design firm for connectors and power supplies. Our production capabilities meet and exceed the highest military and industrial standards for consistent quality, inspection, marking and packaging. Our factories are DoD and QPL-approved. PEI is ISO 9001-2008 certified worldwide. PEI-Genesis is more than a distributor of connectors and power supplies – we are a value-added supplier offering a wide range of services to support both your application design phase and your supply chain. Our main services include custom assembly and component modification of connectors and power supplies, custom kitting packaging, color-coding, custom marking & labeling, and custom packaging solutions. We also have a variety of supply chain solutions from EDI to bonded stock to help you manage your inventory levels. WHY PEI? WE PROVIDE ACCESS to the brands you need. We are one of the than 5,000 per hour. Using proprietary automation for largest value-added distributors for ITT Cannon, Amphenol, CINCH, speed, consistency, and quality, PEI-Genesis can build Lemo – US, Anderson Power Products, Sunbank, Friwo, and Elpac by just 1 piece or 10,000 pieces with equal ease to any ICCNexergy. Over 85% of the products we produce are value-added – standard or customized specification. fast. Most of our custom connector solutions are turned around in 48 Headquartered in Philadelphia, PA, PEI-Genesis hours and modified power supplies in just five days! PEI-Genesis can has production facilities in South Bend, IN; Bensalem, build over 12 million unique connectors from stock at a rate of more PA; and Southampton, UK; as well as 27 sales offices in eight countries giving our customers local access to a team of technical expertise. We are the experts at what we do – connectors, power supplies and custom engineered solutions. Our technical support team includes salespeople, applications engineers, power sales engineers, and product managers who help support your design challenges. 40 DISTRIBUTION RESOURCE +0:*6=,9;/, 7,0+0--,9,5*, TURNAROUND ON CONNECTORS TURNAROUND ON CUSTOM POWER SUPPLIES ₔ )L[[LYHJJLZZ[V[OLIYHUKZ`V\[Y\Z[ ₔ +LKPJH[LKZHSLZJVUZ\S[HU[Z ₔ ,_WLY[LUNPULLYPUNZ\WWVY[ ₔ 6YKLYQ\Z[VUL¶UV468 ₔ 8\PJR[\YUHYV\UKVUJVUULJ[VYZ WV^LYZ\WWSPLZ ₔ :OVWVUSPUL 7,0.,5,:0:»,5.05,,9:(9,9,(+@;6:63=, @6<9+,:0.5*/(33,5.,: *HSS\ZH[ LTHPS\ZH[ZHSLZ'WLPNLULZPZJVT VY]PZP[\ZVUSPULH[^^^WLPNLULZPZJVT LEADERS2013 LEADERS PROFILE WPG AMERICAS, INC WPG AMERICAS, INC. (WPGA) is a member of WPG our customers and suppliers to provide solutions in the Holdings, the largest electronics distributor in Asia. Display, Lighting, Power and Communications technology Founded in November 2007, WPG Americas is a franchised horizontals across the broad range of customer vertical partner to technology leaders in the Semiconductor, markets in the Americas. Passive, Electromechanical, Interconnect, Displays and Lighting Solutions markets. WPGA is a full service distributor partner and member of the Electronic Components Industry Association (ECIA) in As a member of WPG Holdings, WPGA is uniquely North America. positioned to support our customers and suppliers in demand creation efforts in the Americas with production WPG Americas - Global Leader, Local Service fulfillment/manufacturing in Asia. COMPANY PROFILE: Rich Davis, President At WPG Americas, we are focused on providing total COMPANY HEADQUARTERS: San Jose, CA solutions based on our customers’ needs via superior LOCATIONS: 8 design engineering services, a focused line card and EMPLOYEES: 125 exceptional quality service. We specialize in working with COMPANY WEBSITE: www.wpgamericas.com WPG AMERICAS DISPLAYS & Solutions Group focuses on the design, value-add and integration of products to support the embedded display market. WPGA partners with the leading companies worldwide for display technologies providing best in class consumer and industrial LCD displays, peripheral products and services. No matter the market for your products, we have the solutions. Let our expertise and partnerships help you find the solutions you need. WPG AMERICAS LIGHTING Solutions is your lighting innovation partner. We offer an industry “best in class”, solutions based linecard, rich with technology leaders. Our elite lighting engineers fully support your design and technology requirements, resulting in faster time to market. WPG supports both proof of concept and full manufacturing build services, delivering a broad range of volume requirements. 42 DISTRIBUTION RESOURCE 'RHV\RXUQH[WGHVLJQ KDYH\RXRXWRQDOLPE" /HW:3*$PHULFDVEH\RXU7RWDO6ROXWLRQV3DUWQHU 7LPHWRPDUNHWLVFULWLFDODQGILQGLQJWKHULJKWVROXWLRQLVQHYHUHDV\ :3*$PHULFDVLVIRFXVHGRQSURYLGLQJWRWDOVROXWLRQVWRRXUFXVWRPHUVDQGVXSSOLHUVYLD VXSHULRUGHVLJQHQJLQHHULQJVHUYLFHVDIRFXVHGOLQHFDUGDQGH[FHSWLRQDOVHUYLFH$VD GLYLVLRQ RI :3* +ROGLQJV RQH RI WKH ZRUOG·V ODUJHVW LQGXVWULDO HOHFWURQLF FRPSRQHQW GLVWULEXWRUV ZH DUH DEOH WR OHYHUDJH VLJQLILFDQW HQJLQHHULQJ UHVRXUFHV DQG UHIHUHQFH GHVLJQVROXWLRQVWRJHW\RXWRPDUNHWIDVWHU 2XUVSHFLDOL]HGHQJLQHHULQJWHDPVLQ'LVSOD\V/LJKWLQJDQG&RPPXQLFDWLRQVDUHUHDG\WR XQGHUVWDQG\RXUJRDOVDQGGHVLJQWKHULJKWVROXWLRQWRJHW\RXRIIWKHOLPEDQGEDFNRQ VWDEOHJURXQG :3* ::::3*$0(5,&$6&20 HPDLO LQTXLU\#ZSJDPHULFDVFRP LEADERS Economic Overview IN DISTRIBUTION VICTORIA FRAZA KICKHAM | DISTRIBUTION EDITOR [email protected] SLOW RECOVERY STILL THE NORM Electronics industry executives adjust to slower industry conditions as they look to new regions and expanding markets for electronic content as key growth drivers. peaking to other electronics supply chain execu- for many companies, and so is factory automation as the trend tives in May, TTI’s Michael Knight characterized toward producing products closer to home gains steam. It all 2012 as a year in which the electronics industry adds up to an electronics marketplace poised for continued slow “went sideways,” explaining the flat to very low growth in the second half of the year, say Knight and others. Sgrowth most distributors in the sector experienced compared “It’s looking to be a very slow recovery,” says Julie Yuan, to 2011. This is new for an industry accustomed to sizable managing director of California-based regional electronics year-over-year sales gains driven by new technologies and distributor Amidon. “It’s certainly become more of a chal- an ever-growing need for electronic content in just about all lenging marketplace.” aspects of daily life. “I think there’s a possibility that 2013 will be another ‘side- THE NEW NORMAL? ways,’” said Knight, TTI’s vice president, Americas, in a sepa- Although conditions are improving, most economists pre- rate interview in early May. “I think we’ll see some slight ‘up,’ dict continued challenges in the manufacturing sector and but that’s not how the industry historically works. Plus or the overall economy for the remainder of 2013. In a late May minus 2% or 3%, that’s just not how our industry looks. But economic update, the Manufacturers Alliance for Produc- it’s happening.” tivity and Innovation (MAPI) predicted 3% growth in the The slow economic recovery globally, combined with politi- manufacturing sector this year—a moderate pace, but about cal uncertainty and other pressures here at home, is the main a percentage point faster than the general economy. Looking culprit, and most distributors say they are thankful for the con- further out, MAPI predicts 3.6% growth in the sector in 2014, tinued drive for more electronics, which is helping to temper also about a percentage point better than the general economy. the situation. The drive for smarter cars, medical equipment, “The major constraint on consumers in 2013 is that appliances, and other consumer devices is helping boost sales wages are not growing much faster than the inflation rate 44 DISTRIBUTION RESOURCE and spendable income is further reduced by higher taxes,” facturing trend that bodes well for many distributors. MAPI chief economist Daniel J. Meckstroth said, adding Some North American executives point to a trend toward that despite volatility and the struggle for growth there are regional manufacturing, also referred to as on-shoring reasons for optimism between now or re-shoring, as original equipment and the end of the year. Rising home Mouser Electronics manufacturers (OEMs) seek to build prices, pent-up demand for con- is looking to expand their products closer to where they sumer durables, and more balanced its Americas busi- will be consumed, especially large, job growth between manufacturing, ness with new growth heavy products that are costly to ship mining/construction and service in Central and South around the world. industries are a few key reasons. America, says Steve The situation is heightened as Despite that optimism, electron- Newland, vice presi- labor costs increase in traditionally ics industry executives look to the dent of sales for the low-cost regions such as Asia. Avnet remainder of 2013 with a cautious Americas. Electronic Marketing’s Ed Smith eye, and many are seeking growth by says the trend is helping to increase expanding their reach globally. Amidon is one such company. manufacturing activity in Mexico, as one example. Yuan says the distributor will open an office in Hong Kong “I think what’s happening is, companies are saying, ‘I have later this year to capitalize on its growing customer base in certain products that are worth building in Asia and certain Asia. Similarly, large catalog distributor Mouser Electronics products I need to build in America [because] it’s not worth is looking to expand in the Americas. It is in the process of the logistics cost to build them in Asia and ship them back,’” opening a new office in Mexico and is conducting a feasibil- says Smith, Avnet EM’s president for the Americas, adding, ity study to open one in Brazil. Expansion in the Americas “I don’t know if I’d call it on-shoring or re-shoring, but there follows Mouser’s focused growth in Europe and Asia over the is clearly an increase in manufacturing [in places such as] last few years. Mexico. Some may view it as on-shoring or re-shoring. I think “We’re starting to get more focused on [Central and South there’s just less going out and more being built in the regions America], [because] we’ve seen some nice growth in Mexico where it’s being consumed.” and Brazil,” explains vice president of sales for the Ameri- Angelo Hrenczuk, director of sales, thermal materials, for cas Steve Newland, pointing to Mouser’s mature business in electronics manufacturer Laird Technologies, agrees and North America. says he sees more automotive and appliance manufacturing For many, mature North American markets are complicated returning to Mexico as well. by the slow recovery here at home. Looking at U.S. manufac- “The chasing of low-cost centers is going to have to end,” turing in particular, economic activity had slowed as of early Hrenczuk says. “Anything that’s big and expensive to ship is June compared to the beginning of the year. coming back.” The Institute for Supply Management’s Purchasing Man- Hrenczuk adds that an increase in ager’s Index (PMI), which measures manufacturing in North and Central U.S. manufacturing activity, declined “I see automation really America will also signal an increased steadily from February to May, when shaping [the industry],” need for factory automation as it hit its lowest point in four years. says Steven Engineer- manufacturers seek to become more May’s PMI registered 49, a nearly 2% ing’s Paul Burk. “Cus- competitive—another boon to many slide compared to April and signaling tomers are asking to electronics distributors’ business. a decline in manufacturing activity. automate processes Northern California-based Steven A PMI above 50 indicates growth that they never have Engineering is already reaping the in the sector. A PMI below 50 indi- before.” rewards of that trend, says vice presi- cates contraction. May’s reading was dent of marketing Paul Burk. The spe- the first contraction since November 2012 and only the cialty distributor of electronic components and industrial second since July 2009. Purchasing managers interviewed automation equipment is predicting double-digit growth this for the survey indicated a flattening of demand due to the year, with factory automation work driving much of it. Burk sluggish local and global economies. points to medical/biotech, alternative energy (mainly wind), and food and beverage processing equipment as key growth REGIONALIZATION, AUTOMATION KEY FACTORS areas for Steven Engineering. Rising costs are another key concern throughout the “I see automation really shaping [the industry],” says Burk. supply chain. When it comes to transportation, logis- “Customers are asking to automate processes that they never tics, and labor, such increases are signaling a new manu- have before.” Q GO TO GLOBALPURCHASING.COM 45 LEADERS2013 LEADERS PROFILE MARCH ELECTRONICS, A LEADER IN QUALITY ELECTRONIC COMPONENTS MARCH ELECTRONICS IS a woman owned distributor of quality electronic components supplying the military, industrial, and commercial marketplaces since 1972. We can satisfy your requirements for connectors, contacts, connector accessories, cables, insulation sleeving, solder sleeves, relays, switches, terminal and terminal blocks, tools, heat sinks and film capacitors. March Electronics is committed to our customer’s complete satisfaction. Our dedicated sales force will promptly and courteously take you through the quotation and ordering process. Our production and quality teams will make sure it meets all your standards and ours. We are an AS9100C / ISO 9001:2008 company and we use these guidelines as a barometer to insure customer satisfaction. VALUE ADDED SERVICES IN ADDITION TO specializing in all types of connectors and M83513 connectors. Furthermore, March also including cylindrical, micro-D, nanominiature, value-adds commercial connectors and micro-coax D-subminiature, rack & panel, RF, coax, micro-coax, cable assemblies. We are able to support Kanban, JIT power and audio, March Electronics is also a value or other special packaging requirements our customer added QPL distributor for D38999, M28748, M55302, may have. March can build to your drawings or submit ours for your approval. Our experience, versatility, and 40+ year commitment to the electronics industry makes us a valued and trusted partner with a strong reputation for quality, integrity and reliability. 46 DISTRIBUTION RESOURCE LEADERS2013 LEADERS PROFILE YOU’RE NOT ALONE. IT HAPPENS TO THE BEST OF US. THERE IS A CURE. BOM CANCER OEMs that have been in production for over 5 years How to identify BOM Cancer: Perhaps the most notice a series of phantom problems, simply written recognizable symptom is an excessive variety of off as BOM Cancer: More time, money, paperwork, brands. A proper BOM should consist of 2-4 brands part numbers, and vendors than ever before. By the per 100 surface-mount part numbers. This allows time you realize that the problem is with your old you to find the best distributor for the dominant trusted Bill of Materials (BOM), you’re in too deep. brand, negotiate with more leverage, drive up vol- The clock is ticking and the bottom line is fading ume discounts, and save time. out. Voyager Components, Inc. understands the Distributor numbers & SKU numbers are often very root of BOM Cancer and how to fix it. While a mixed into BOMs, cornering a buyer to use more consultant would charge plenty for this fix, Voyager vendors than necessary. Manufacturer PNs with Components offers this valuable service to custom- superfluous suffixes may have the same ‘cornering’ ers FOR FREE. effect. Manufacturer PNs with missing suffixes can Year after year your BOM is slowly altering itself result in the delivery of the correct PN in the wrong as a result of revised buying methods, shortages, packaging, leading to time-consuming exchanges new software, and design changes. What started off and disputes. as a perfectly engineered list of parts is now a laby- The cure is Voyager Components Inc BOM rinth of similar parts across various brands. Cleaning. This program is FREE to customers, and the process is simple... 1. Email up to 3 BOMs to [email protected], subject title ‘BOM Clean’. 2. Lists are quickly scrubbed and results are quality checked by an in-house specialist. 3. You receive your BOM in its original format with added columns of suggestions. PHONE | 888.905.0088 WEB | voyagercomponents.com 48 DISTRIBUTION RESOURCE Top Distributors Continued from Page11 have a need to cover themselves in this area, so they’re starting to require [certificates of compliance] with every order. Distribution is not set up to do this. We all have traceability if we’re requested to quality assurance documentation on a range of levels from all go back, but it’s very challenging to do it [up front].” their trading partners, placing new pressure and more work on Aruri says Sager is likewise involved in industry efforts to distributors of all shapes and sizes. explain and promote the authorized channel. The issue has been building since the late 2011 passage “We’re participating in any initiative that encourages people of the National Defense Authorization Act, which includes to buy from authorized distributors,” he says. new rules and regulations around counterfeit electronic parts found in the defense supply chain. The NDAA includes, or OUTLOOK: MORE ELECTRONICS, MORE BUSINESS directs government agencies to include, new rules for defense Despite the challenges ahead, SourceESB’s Top 50 Electron- contractors and impose steep penalties on those who supply ics Distributors say the long-term outlook is bright for the counterfeit components to the military. As a result, contractors electronics supply chain. Avnet’s Smith points to the growing are seeking new assurances from their suppliers that the parts amount of electronics in the automotive industry as a shining they are purchasing are authentic. example, and he also notes that increasing demand for elec- The issue has shined a light on the independent distribution tronics in areas of limited growth, such as defense, are good market, and distributors such as N.F. Smith & Associates say they reason for a positive view. Others agree, pointing to the pro- have seen a consolidation in that market that may signify a turn- liferation of electronics in industrial applications, consumer ing point for the industry. The heightened focus on quality is rais- markets, and more. ing the bar among independents, and those that don’t offer testing “Certainly, one of the reasons to be enthusiastic about being and other vital quality assurances simply aren’t making the grade. in the technology industry is the expansion of these [compo- “We’ve seen a lot of consolidating among the independents nents] to other industries. Industrial applications, oil and gas, and the cream has kind of risen,” says Marc Barnhill, chief automotive—every month, every year these components get trading officer for N.F. Smith. “There aren’t as many as there put into equipment that they weren’t in the year before. Just used to be, and we think that’s a trend that will continue.” look at the technology in your refrigerator,” says N.F. Smith & The focus on counterfeits is also affecting the authorized Associates’ Hartzell. “We are poised to always stay on top of distribution channel. Authorized distributors purchase prod- wherever that market expands.” ucts directly from the manufacturer or other authorized dis- SourceESB’s 2013 Top 50 Electronics Distributors report is tributors, ensuring authenticity. But many large distributors are featured each May in Electronic Design’s Distribution Resource finding that some customers don’t understand the authorized section and online at Globalpurchasing.com. Q model and are placing new demands on those distributors as well, most notably seeking certificates of compliance with every order. As a result, a group of authorized distributors is working ADVERTISERS INDEX through the industry’s G19 Committee—an SAE International group that works to address prevention, detection, and elec- ALLIED ELECTRONICS ...... DR 8-9 tronics industry response to the counterfeit threat—to define AMERICA II ELECTRONICS ...... DR 14-15 authorized distribution. ASTREX ...... DR 36-37 Pete Shopp, senior vice president, business operations for AVNET ...... DR 4-5 Mouser Electronics, number eight, points to customers’ grow- BEYOND COMPONENTS ...... DR 24-25 ing demand for traceability, noting that some customers are DIGI-KEY ...... DR BC demanding access to manufacturer packing slips to ensure DIGI-KEY ...... DR 1 & IBC authenticity, for example. FUTURE ELECTRONICS ...... DR 18-19 “It’s all centered around making sure they have genuine parts, IMPACT DISPLAY SOLUTIONS ...... DR 22-23 and that’s understandable given the emphasis by the Department MARCH ELECTRONICS ...... DR 46-47 of Defense,” says Shopp. “We’re involved with several industry NEXUS ELECTRONICS ...... DR 34-35 groups promoting authorized distribution and what that means. PEI-GENESIS ...... DR 40-41 We even have someone working with the G19 committee trying SAGER ...... DR 30-31 to come up with a definition of authorized distribution.” SYMMETRY ELECTRONICS CORP ...... DR 28-29 The issue concerns Sager’s Aruri, as well, particularly TTI INC ...... DR 12-13 because it’s beginning to spill over to non-defense industries. VOYAGER ...... DR 48-49 “The need for [certificates of compliance] has crossed from the WPG AMERICA ...... DR 42-43 military world to the commercial world,” says Aruri. “Customers 50 DISTRIBUTIONELECTRONIC RESOURCE DESIGN ADLINK TECHNOLOGY • ADVANCED ASSEMBLY • ADVANCED POWER ELECTRONICS CORPORATION ADVANCED CIRCUITS • ALLIED ELECTRONICS • ALPHA AND OMEGA SEMICONDUCTOR LIMITED • AVNET • COMPAERO, INC. • DESIGNSPARK MECHANICAL • DIGI-KEY CORPORATION • EMCO HIGH VOLTAGE CORPORATION • FCI ELECTRONICS AMERICA • FRONT PANEL EXPRESS • IMAGINEERING • KEYSTONE ELECTRONICS CORP. • LINEAR INTEGRATED SYSTEMS, INC. • PEARSON ELECTRONICS • PEI-GENESIS, • VOLTAGE MULTIPLIERS INC.• ADLINK TECHNOLOGY • ADVANCED ASSEMBLY • ADVANCED POWER ELECTRONICS CORPORATION • ADVANCED CIRCUITS • ALLIED ELECTRONICS • ALPHA AND OMEGA SEMICONDUCTOR LIMITED • AVNET • COMPAERO, INC. • DESIGNSPARK MECHANICAL • DIGI-KEY CORPORATION • EMCO HIGH VOLTAGE CORPORATION • FCI ELECTRONICS AMERICA • FRONT PANEL EXPRESS • IMAGINEERING • KEYSTONE ELECTRONICS CORP. • LINEAR INTEGRATED SYSTEMS, INC. PEARSON ELECTRONICS • PEI-GENESIS, INC. • VOLTAGE MULTIPLIERS INC. • ADLINK TECHNOLOGY ADVANCED ASSEMBLY • ADVANCED POWER ELECTRONICS CORPORATION • ADVANCED CIRCUITS • ALLIED ELECTRONICSTHE AUTHORITY • ALPHA ON AND OMEGA SEMICONDUCTOR LIMITED • AVNET • COMPAERO, INC. • DESIGNSPARKARK MECHANICAL DIGI-KEY CORPORATION • EMCO HIGH VOLTAGE CORPORATION • FCI ELECTRONICSEMERGING TECHNOLOGIES AMERICA • FRONT PANEL EXPRESS • IMAGINEERING • KEYSTONE ELECTRONICS CORP LINEARFOR DESIGN INTEGRATED SOLUTIONSTED SYSTEMS, INC. • PEARSON ELECTRONICS PEI-GENESIS, INC. VOLTAGE TECHNOLOGY • ADVANCED ASSEMBLY • ADV ANCED CIRCUITS • ALLIED ELECTRONICS • ALPHA electronicdesign.comAERO, INC. • DESIGNSPARK MECHANICAL • TION • FCI ELECTRONICS AMERICA • FRONT P CORP. • LINEAR INTEGRATED SYSTEMS, INC. AGE MULTIPLIERS INC. • ADLINK TECHNOLOGY ELECTRONICS CORPORATION • ADVANCED CIRCUITS SEMICONDUCTOR LIMITED • AVNET • COMPAERO, INC. • EMCO HIGH VOLTAGE CORPORATION • FCI IMAGINEERING • KEYSTONE ELECTRONICS CORP. • LINEAR ELECTRONICS • PEI-GENESIS, INC. • VOLTAGE MULTIPLIERS ADVANCED POWER ELECTRONICS CORPORA ALPHA AND OMEGA SEMICONDUCTOR LIMITED MECHANICAL • DIGI-KEY CORPORATION • EMCO HIGH AMERICA • FRONT PANEL EXPRESS • IMAGINEERING TED SYSTEMS, INC. • PEARSON ELECTRONICS ADLINK TECHNOLOGY • ADVANCED ASSEMBLY • ADV ANCED CIRCUITS • ALLIED ELECTRONICS • ALPHA AERO, INC. • DESIGNSPARK MECHANICAL • DIGI-KEY TION • FCI ELECTRONICS AMERICA • FRONT P CORP. • LINEAR INTEGRATED SYSTEMS, INC. LEADERSAGE MULTIPLIERS INC.• ADLINK TECHNOLOGY ELECTRONICS CORPORATION • ADVANCED CIRCUITS SEMICONDUCTOR LIMITED • AVNET • COMPAERO, INC. • EMCO HIGH VOLTAGE CORPORATION • FCI IMAGINEERING • KEYSTONE ELECTRONICS CORP. • LINEAR IN ELECTRONICSPEI-GENESIS, INC. • VOLTAGE MULTIPLIERS ADVANCED POWER ELECTRONICS CORPORA ALPHA AND OMEGA SEMICONDUCTOR LIMITED MECHANICAL • DIGI-KEY CORPORATION • EMCO HIGH AMERICA • FRONT PANEL EXPRESS • IMAGINEERING TED SYSTEMS, INC. • PEARSON ELECTRONICS TECHNOLOGY • ADVANCED ASSEMBLY • ADV ANCED CIRCUITS • ALLIED ELECTRONICS • ALPHA AERO, INC. • DESIGNSPARK MECHANICAL • DIGI-KEY TION • FCI ELECTR ONICS AMERICA • FRONT CORP. • LINEAR INTEGRATED SYSTEMS, INC. AGE MULTIPLIERS INC. • ADLINK TECHNOLOGY ELECTRONICS CORPORATION • ADVANCED CIRCUITS SEMICONDUCTOR LIMITED • AVNET • COMPAERO, INC. • EMCO HIGH VOLTAGE CORPORATION • FCI IMAGINEERING • KEYSTONE ELECTRONICS CORP. • LINEAR ELECTRONICS • PEI-GENESIS, INC. • VOLTAGE MULTIPLIERS ADVANCED POWER ELECTRONICS CORPORA ALPHA AND OMEGA SEMICONDUCTOR LIMITED NEW MECHANICAL • DIGI-KEY CORPORATION • EMCO HIGH AMERICA • FRONT PANEL EXPRESS • IMAGINEERING PRODUCTS TED SYSTEMS, INC. • PEARSON ELECTRONICS ADLINK TECHNOLOGY • ADVANCED ASSEMBLY • ADVADDED DAILY ANCED CIRCUITS • ALLIED ELECTRONICS • ALPHA AERO, INC. • DESIGNSPARK MECHANICAL • DIGI-KEY TION • FCI ELECTRONICS AMERICA • FRONTDIGIKEY.COM P /NEW CORP. • LINEAR INTEGRATED SYSTEMS, INC. AGE MULTIPLIERS INC.• ADLINK TECHNOLOGY EDLeadersCover.indd 1 12/19/13 10:44 AM LEADERS2013 LEADERS PROFILE DIGI-KEY CORPORATION YOUR TOTAL SOLUTIONS PROVIDER OF WEB | digikey.com OVER 3.5 MILLION COMPONENTS AT TEL | 800.344.4539 WWW.DIGIKEY.COM igi-Key Corporation, a global Internet-based distributor of electronic components, is an authorized distributor of more than 3.5 million Dcomponents from 650+ trusted suppliers. The company’s reputation extends worldwide as customers continue to choose Digi-Key, gaining access to the widest selection of electronic components in the industry, avail- able for immediate shipment from its award-winning website, www. digikey.com. With this wide range of products, available in both design and production quantities, Digi-Key is the best resource for design engineers and buyers alike. The availability of products is one of the characteristics that dis- tinguish Digi-Key from other electronic component distributors. Digi-Key stocks over 975,000 products in an 800,000 square foot distribution center in Thief River Falls, Minnesota, USA. Every day, new products are added in a continuing effort to offer the full range of electronic components needed by customers. Whether semiconduc- tors, passives, interconnect, electromechanical, wireless, or lighting components, Digi-Key has the parts you need, when you need them. always ready to answer any questions. This commitment to customer service At Digi-Key, we have always prided ourselves on our ability to provide the has earned us numerous awards through best possible service to our customers. A customer may request electronic the years. Independent industry research components 24 hours a day, seven days a week, 365 days a year, either by phone, has ranked Digi-Key #1 for Overall Per- fax, email, or through the website. Digi-Key’s talented team of technicians and formance for over 20 years. applications engineers is also available by phone, email or through the website, Digi-Key’s hybrid, “Prototype to Production®” business model offers customers a truly unique buying experi- ence. Supporting engineers through the entire design process, whether prototyp- ing, manufacturing small production runs, designing upgrades, or moving into full-scale production, is what truly sets Digi-Key apart. From Prototype to Production, Digi-Key has the necessary resources and products necessary to take your design to the next level! Learn more by visiting www.digikey.com. ELECTRONIC DESIGN LEADERS2013 In Electronics TABLE OF CONTENTS 12 CONSUMER ELECTRONICS TAKE USER INTERFACES BEYOND YOUR FINGERTIPS You don’t need keyboards and mice to interact with your devices anymore. Now you can use haptics, 3D imaging, and more. 24 GET YOUR PRESCRIPTION FOR PERSONAL MEDICAL ELECTRONICS Leading-edge technologies coming together promise to revolutionize healthcare 12 by focusing on the patient, reducing costs, accelerating diagnostics and therapeutics, and improving delivery. 37 IDEAS FOR DESIGN Circuit generates high-frequency sine/cosine waves from square-wave input. 43 FREESCALE’S RITU FAVRE DISCUSSES TODAY’S RF TECHNOLOGIES 24 RF technology isn’t just a niche in electronics. It’s the basis for the massive use of wireless we see today. 54 WHEN WILL SELF-DRIVING CARS BE READY FOR YOU? The latest driverless cars can do more than avoid buildings and other mobile vehicles, but the technology needs to be more reliable and less expensive. 43 DEPARTMENTS 6 On ElectronicDesign.com 7 Editorial 54 Advertiser’s Index 54 EDITORIAL MISSION: To provide the most current, accurate, and in-depth technical coverage of the key emerging technologies that engineers need to design tomorrow’s products today. 2 ELECTRONIC DESIGN Overachiever. The most powerful scope you can buy for $1,290. MSO/DPO2000B Mixed Signal Oscilloscope Series* Introducing the MSO/DPO2000B Mixed Signal Oscilloscope Series. Like all of our MSO/DPO oscilloscopes, these powerful performers have the accuracy and craftsmanship you expect from Tektronix. Only the low price is surprising. Designed with you in mind, they are packed with innovative features to help speed every stage of debug. These scopes boast 16 digital channels, automated search, Wave Inspector® for navigating long records and even automated serial decode. All at a starting price that makes perfect sense, and backed by a 5-year warranty. MSO/DPO2000B Series MSO/DPO3000 Series MSO/DPO4000B and MDO4000 Series Bandwidth 200 MHz, 100 MHz, 70 MHz Bandwidth 500 MHz, 300 MHz, 100 MHz Bandwidth 1 GHz, 500 MHz, 350 MHz, 100 MHz Channels 2 or 4 analog Channels 2 or 4 analog Channels 2 or 4 analog 16 digital (MSO Series) 16 digital (MSO Series) 16 digital (MSO & MDO Series) 1 RF (MDO Series) Record Length 1 Mpoints Record Length 5 Mpoints Record Length Up to 20 Mpoints Display 7.0” Display 9.0” Display 10.4” Serial Bus Options I2C, SPI, RS-232/422/485/UART, CAN, LIN Serial Bus Options I2C, SPI, RS-232/422/485/UART, CAN, LIN, Serial Bus Options I2C, SPI, RS-232/422/485/UART, CAN, LIN, FlexRay, FlexRay, I2S/LJ/RJ/TDM, MIL-STD 1553 I2S/LJ/RJ/TDM, MIL-STD 1553, USB, Ethernet Optional Analysis -- Optional Analysis Power Analysis, HDTV & Custom Video Triggering Optional Analysis Power Analysis, Limit & Mask Testing, HDTV & Custom Video Triggering Starting Price $1,290 Starting Price $3,380 Starting Price $7,150 Watch how the series stacks up against the competition at www.tektronix.com/overachiever *MSO2024B shown in picture and priced at $3,570. © 2012 Tektronix, Inc. All rights reserved. Tektronix products are covered by U.S. and foreign patents, issued and pending. TEKTRONIX and the Tektronix logo are registered trademarks and Wave Inspector is a trademark of Tektronix, Inc. A Penton® Publication 2013 EDITORIAL CONTENT DIRECTOR: NANCY K. FRIEDRICH [email protected] CONTENT PRODUCTION DIRECTOR: MICHAEL BROWNE [email protected] PRODUCTION EDITOR: RICHARD GAWEL [email protected] PRODUCTION EDITOR: JEREMY COHEN [email protected] ANALOG/POWER: DON TUITE [email protected] COMMUNICATIONS: LOUIS E. FRENZEL [email protected] DISTRIBUTION: VICTORIA FRAZA KICKHAM [email protected] EMBEDDED/SYSTEMS/SOFTWARE: WILLIAM WONG [email protected] ASSOCIATE PRODUCTION EDITOR: DENISE GRECO [email protected] ASSOCIATE CONTENT PRODUCER: ILIZA SOKOL [email protected] EUROPEAN EDITOR: PAUL WHYTOCK [email protected] ASSOCIATE EDITOR: SALLY WARD-FOXTON [email protected] EDITORIAL INTERN: SARAH MANGIOLA [email protected] ART DEPARTMENT GROUP DESIGN DIRECTOR: ANTHONY VITOLO [email protected] CREATIVE DIRECTOR: DIMITRIOS BASTAS [email protected] SENIOR ARTIST: JAMES MILLER [email protected] PRODUCTION GROUP PRODUCTION MANAGER: JUSTIN MARCINIAK [email protected] PRODUCTION MANAGER: JULIE GILPIN [email protected] AUDIENCE MARKETING AUDIENCE DEVELOPMENT DIRECTOR: BRENDA ROODE [email protected] ONLINE MARKETING SPECIALIST: DAN KRAFT [email protected] FREE SUBSCRIPTION/STATUS OF SUBSCRIPTION/ADDRESS CHANGE/MISSING BACK ISSUES |T | 866.505.7173 [email protected] SALES & MARKETING BRAND DIRECTOR, e|DESIGN: TRACY SMITH T | 913.967.1324 F | 913.514.6881 [email protected] REGIONAL SALES REPRESENTATIVES BRAND CHAMPION: NORTHEAST/EASTERN CANADA: DAVE MADONIA T | 212.204.4331 F | 913.514.3966 [email protected] SOUTH: BILL YARBOROUGH T | 713.636.3809 F | 713.380.5318 [email protected] NORTHWEST/NORTHERN CALIFORNIA/WESTERN CANADA: JAMIE ALLEN T | 415.608.1959 F | 913.514.3667 [email protected] MIDWEST/MID-ATLANTIC: STEPHANIE CAMPANA T | 312.840.8437 F | 913.514.3645 [email protected] PLEASE SEND INSERTION ORDERS TO: [email protected] PENTON REPRINTS: WRIGHT’S MEDIA T | 877.652.5295 [email protected] CIRCULATION: CUSTOMER SERVICE T | 866.505.7173 F | 847.763.9673 [email protected] INTERNATIONAL SALES EUROPE: MARK DURHAM T | +44 (0)7958 564137 [email protected] ASIA: HELEN LAI T | 886 2 2727 7799 [email protected] JAPAN: HIROKAZU MORITA T | +81 3 3261 4591 F | +81 3 3261 6126 TAIWAN: CHARLES LIU T | 886 2 2727 7799 F | 886 2 2728-3686 KOREA: JO YOUNG SANG T | (011)82 2 739 7840 LIST RENTALS: MERIT DIRECT FREE SUBSCRIPTION/STATUS OF SUBSCRIPTION/ADDRESS CHANGE/MISSING BACK ISSUES T | 866.505.7173 F | 847.763.9673 [email protected] ONLINE ONLINE DEVELOPMENT DIRECTOR: VIRGINIA GOULDING [email protected] COMMUNITY LEADER: RYAN MALEC [email protected] DESIGN ENGINEERING & SOURCING GROUP VICE PRESIDENT & MARKET LEADER: BILL BAUMANN EXECUTIVE DIRECTOR OF CONTENT AND USER ENGAGEMENT: NANCY FRIEDRICH GROUP DIRECTOR OF OPERATIONS: CHRISTINA CAVANO GROUP DIRECTOR OF MARKETING: JANE COOPER RESEARCH MANAGER: JULIE RITCHIE MARKETING & EVENTS SPECIALIST: ADRIAN PIAZZA PENTON MEDIA INC. CHIEF EXECUTIVE OFFICER: DAVID KIESELSTEIN [email protected] CHIEF FINANCIAL OFFICER: NICOLA ALLAIS [email protected] SENIOR VP, DESIGN ENGINEERING GROUP: BOB MACARTHUR [email protected] 1166 AVENUE OF THE AMERICAS, 10TH FLOOR NEW YORK, NY 10036 T | 212.204.4200 Electronic Design | Machine Design | Microwaves & RF | Medical Design | Source ESB | Hydraulics & Pneumatics | Global Purchasing | Distribution Resource | Power Electronics | Mobile Dev & Design | Defense Electronics | Electronic Design Europe | Engineering TV 4 ELECTRONIC DESIGN 6US`ZJVWL ^P[OHI\PS[PUZWLJ[Y\THUHS`aLY 6US` Time Domain Display Frequency Domain Display The world’s fi rst mixed domain oscilloscope is now even more accessible. The award-winning Tektronix MDO4000 Series Mixed Domain Oscilloscope is turning heads with its revolutionary built-in spectrum analyzer. For the fi rst time, you can capture up to 21 time-correlated analog, digital and RF signals with one instrument. You can even view the RF spectrum at different points in time to see critical changes. Now the year’s top scope is even more impressive, with new models starting at just $12,200. Which means you can capture more signal types with one instrument than ever before. For less than ever before. MDO4000 Mixed Domain Oscilloscope 4 analog channels 1 RF channel ° 100 MHz to 1 GHz bandwidth models ° 50 kHz – 3 GHz and 50 kHz – 6 GHz frequency range models 16 digital channels ° Ultra-wide capture bandwidth up to 3 GHz Parallel and serial bus triggering and analysis Unique RF analysis tools: automated markers, spectrogram display, Built on the MSO4000B mixed signal oscilloscope platform RF vs. time traces, advanced RF triggers Find the right scope for your project and budget at scoperevolution.com. * MSRP USD Starting Price © 2012 Tektronix, Inc. All rights reserved. Tektronix products are covered by U.S. and foreign patents, issued and pending. TEKTRONIX and the Tektronix logo are registered trademarks of Tektronix. on PACKAGING: A 30-YEAR CAREER RETROSPECTIVE We’ve come a long way from the fi rst IC, but we still have a long way yet to go to achieve the full promise of the IC revolution. SUN-POWERED CARS CROSS AUSTRALIA IN THE WORLD SOLAR CHALLENGE Teams from 23 countries raced their sun- powered cars on a 3000-km course across the Outback. blogs PAUL WHYTOCK • Low-Energy Bluetooth ELECTRONIC DESIGN And Ant+ Merge Onto EUROPE One Chip WHAT’S ALL THIS DON TUITE • Elon Musk’s Hyperloop CAPACITIVE LOADING ANALOG/POWER And LIM Trains STUFF, ANYHOW? LOUIS FRENZEL • Amazing, Adaptable AM In 2008, Bob Pease exchanged e-mails with Paul Rako and other friends about how an amplifi er will oscillate if you put a capaci- COMMUNICATIONS Radio tive load on it. BILL WONG • The Internet Of EMBEDDED/SYSTEMS/ Thingamajigs JOHN KISPERT DISCUSSES SOFTWARE QSPI FLASH AND RECENT ACQUISITONS Spansion CEO John Kispert tackles the company’s FL-iK quad- SPI serial fl ash memory and its purchase of Fujitsu’s microcon- join us online troller and analog business. 6 ELECTRONIC DESIGN Editorial NANCY K. FRIEDRICH | EDITOR-IN CHIEF [email protected] The Wireless Vision Nears Completion ack in the early 2000s, I remember being at a trade show and conference where a speaker talked about then-recent cellular innovations. The presentation noted the impressive developments that Bhad led to better power consumption, thinner cell phones, better screens, etc. The wireless Internet and other connected aspects like location-based services were on the horizon. Yet some commentary was devoted to the fact that no matter how “portable” we thought our devices were, we were still plugged in—or had to be plugged in for at least some point of every day in order to keep our devices up and running. The idea was that true portability would only come when connectivity and power could be delivered wirelessly. The dawn of that day is here and devices will undoubtedly be revolutionized by this capability. Despite naysayers and fits and starts in terms of technology development, the early days of wireless charg- ing are here. Various standards and technologies are vying to fulfill this need. Charging mats are available and being tried out in applications ranging from vehicle dashboards to airport charging stations. Furniture makers are even getting into the mix, creating tables, desks, and more with built-in wireless-charging capa- bility. Reports are circulating that Apple’s new iWatch will be able to charge itself from a distance of 100 m. The iWatch is an interesting example, as medical and fitness-monitoring applications based on wireless connectivity have driven the development of wearable and implantable devices. If wireless charging can enable designers to shrink and slim down personal devices, it may make more sense for everyone to have a smartphone on their wrist. Implantable communications devices may not be too far behind. This trend counters some recent analysis of the broader consumer electronics and design industry, which points to iterative rather than evolutionary developments. In other words, some analysts and industry fol- lowers feel that the “next big thing” being designed is just a glossier, smaller/thinner, longer-battery-life ver- sion of the thing that came before it. Take the hype around the newest tablets, for example. Even if consumer electronics makers have succeeded in finding the right combination of look, feel, and features to keep users coming back, that does not signal a lack of imagination and inspiration. Great leaps in JOIN US ONLINE technology development continue to be witnessed in segments like defense, medical, and automo- Become a fan @ facebook. com/ElectronicDesign tive. Now, wireless charging is preparing to revolutionize the electronics industry and the way consumers interact with their devices. It’s time for the next big change as personal devices truly cut the wires. GO TO ELECTRONICDESIGN.COM 7 LEADERS2013 LEADERS PROFILE COMPAERO, INC. WEB | www.compaero.com EMAIL | [email protected] TEL | 877-COMPAERO (877-266-7237) MANUFACTURER AND DISTRIBUTOR OF DEFENSE ELECTRONICS ased in Mooresville, North Carolina, Compaero is a manufacturer of adapters, protective covers, cable clamps Band other connector accessories used primarily in the Aerospace & Defense Industry. Adapters offered range from simple strain reliefs to submersible EMI/RFI shielded backshells for use in harsh environments. Protective covers, used to safeguard connectors while not in use, are available with a wide array of lanyards, eyelets and security rings for complete customization. Compaero’s line of cable clamps conform to MS3057 style A, B, C & D and are widely used in automotive and heavy industrial markets. Using a value- added approach to manufacturing Compaero is able to maintain competitive prices and short lead times. Their award winning website, www.compaero.com, offers online specifications, pricing, real-time inventory, online ordering and the ability to see quotes, orders, invoices, tracking numbers and more. Over 2 million competitor’s part numbers can be cross-referenced simply by entering the part number. AUTHORIZED DISTRIBUTION COMPAERO ALSO STOCKS and distributes a few select product lines Brady heat shrink, wrap around, self lamination and including Corsair Connectors, Hellermann/Tyton, Brady and other I.D. labels. Comtronic Connector’s miniature and Comtronic Connectors. Corsair Connectors is a QPL’d manufacturer ultra miniature line of products are among the smallest of MIL-DTL-26482, MIL-DTL-5015 and MIL-DTL-38999 Circular connectors in the world. Circular versions range from Connectors. Compaero is a MIL-STD-790 Class C value added 1 to 12 conductors with outside diameters as little as distributor for Corsair. Hellermann/Tyton manufactures a wide range 5.4 millimeters. Compaero is the sole U.S. distributor of products including fasteners, braided sleeving, heat shrink tubing for Comtronic and keeps a wide selection of stock and shrink boots. With a focus on molded shapes and shrink boots, available for immediate shipment. Compaero’s sales Compaero carries a large Hellermann/Tyton inventory available for same team pride themselves on product knowledge and can day shipping. For wire and cable identification needs Compaero offers answer questions that may arise during the design or assembly process. Every product line manufactured, assembled or distributed is tested assuring a working knowledge of the items offered. For more information visit www.compaero.com, email [email protected], or call 877-COMPAERO (877-266-7237). 8 ELECTRONIC DESIGN LEADERS2013 LEADERS PROFILE FCI ELECTRONICS AMERICA CONNECTING YOU TO THE FAST LANE WITH FCI CI recently launched an “M” “P” “H” campaign to their channel High Speed – FCI is an industry leader, partners and customers in USA, highlighting FCI’s world class utilizing leadframe designs, optimal Fexpertise and support for Mezzanine, Power and High Speed material and manufacturing processes, interconnects. Get in the Fast Lane with FCI, a leading interconnect and to deliver the best cost/performance ratio cable assembly solutions provider that combines a broad product offering available. FCI’s full portfolio of high speed with field engineering resources to meet the evolving needs of design copper and optical interconnect products engineers. provide application solutions for Backplane connectors scalable from 8 to 40 Gb/s Mezzanine – FCI’s “MezzSelect®” product portfolio is second to none performance and I/O cable assembly and in terms of stacking heights (ranging from 2mm to 40mm), high speed connector solutions supporting 10 Gb/s, solutions (of up to 28 Gb/s), contact counts (from 4 to 600 per connector) 40 GB/s and 120 Gb/s transmission rates. and signal densities (of 8 to 80 signals per cm) in fine pitch and array product Interconnect products are available in both styles. active optical and passive copper variants. Power – FCI’s portfolio of power connector systems, employing stamped The XLerate™ Series is in full compliance and formed power contacts combined with housings designed to optimize with industry standards, such as Ethernet, airflow, provide a broad range of options in Amps per contact (7 – 144) and SFF, Infiniband, USB, PCMCIA, and HDMI. the linear current density ranges from 120 – 610 Amps per linear inch. The These products are optimized for PwrBlade® and PwrBlade+® connector systems enable power distribution and performance and power efficiency in signal control within a single connector, making them ideal design choices for a variety of markets and applications vigorous power system requirements of servers, storage, and communication including data, communication, consumer, equipment. To meet industry demand for reduced power consumption, FCI industrial, instrumentation, medical added a high-power card edge (HPCE) connector series for applications and machine-to-machine. For more requiring high linear density and low power loss. information, visit www.fci.com/mph. 10 ELECTRONIC DESIGN LEADERS Consumer Electronics IN ELECTRONICS BILL WONG |EMBEDDED/SYSTEMS/SOFTWARE EDITOR [email protected] CONSUMER ELECTRON Take User Interfaces Beyond Your Fingertips You don’t need keyboards and mice to interact with your devices anymore. Now you can use haptics, 3D imaging, and more. emember when you had to push a button or turn a ating the custom sensor layouts for multiple controls has handle to make something happen? It seems like a assembly, reliability, and cost advantages. long time ago, but control via touch, swipe, wave, Gesture recognition is common on smart phones and tab- and voice really have been recent developments. lets courtesy of touch support. Gesture recognition can even RStill, the trends are clear. be built into a chip. A few gestures tend to be commonly When I walk up to my Toyota Prius, I unlock the door by supported such as point and press as well as dials and pulling the handle. The car recognizes me via the key fob sliders that usually have a displayed representation on in my pocket. The same technology lets me start the car by a dynamic screen or a static layout. pressing a button. Our other car requires a key. I only drive it The Apple iPhone popularized the pinch and occasionally, but I usually forget to pull out the key, and I look zoom and swipe gestures. More advanced silly trying to start the car by pressing a non-existent button. gestures, however, tend to be application- The Prius is the newer vehicle. Its voice-activated naviga- specific or device-specific, making them tion system requires a button press on the steering wheel. But look more like magic. This can lead from then on, it’s all voice interaction for everything from to user confusion when users don’t making a call to changing a navigation point. My version is know what types of interaction keyword-oriented, so it is not a matter of speaking naturally. the devices support. These features have been standard on higher-end models Capacitive touch technol- for years, but there have been big improvements in function- ogy can also support 3D sens- ality, performance, and reliability. The same is true for mobile ing. The Z-axis typically has devices and appliances, from tablets to washing machines. less accuracy but is more than sufficient for 3D gestures. 3D gesture A TOUCH ON GLASS sensing can be used to provide additional feedback Mechanical buttons used to be cheap. They still are for such as highlighting a button before it is pressed in the same many applications, but touch sensors are more the norm now where microcontrollers and microprocessors are involved. HP’s Envy notebook computers have LeapMotion’s 3D sensing tech- Touch interfaces are built into many microprocessors. Cre- nology built in. 12 ELECTRONIC DESIGN ICS GO TO ELECTRONICDESIGN.COM 13 LEADERS2013 LEADERS PROFILE DESIGNSPARK MECHANICAL From ALLIED ELECTRONICS & RS COMPONENTS ALLIED ELECTRONICS, a subsidiary of Electrocomponents plc WEB | alliedelec.com (LES:ECM), is a small order, high service level distributor of industrial EMAIL | [email protected] automation products, electronic components and electromechanical TEL | 800.433.5700 products with more than 50 sales offices across the United States FAX | 817.595.6444 and Canada. 7151 Jack Newell Blvd. S INTRODUCING DESIGNSPARK MECHANICAL Fort Worth, Texas, 76118 DesignSpark Mechanical is a groundbreaking new software package brought to you by Allied Electronics and RS Components. With its intuitive interface, DSM allows electrical and mechanical engineers to quickly and easily build models and prototypes in three you the time and effort of sourcing and ordering parts dimensions without the use of expensive and complicated Computer- individually. Aided Design (CAD) programs. DesignSpark Mechanical offers a host of important Best of all, it’s absolutely free. features, including: Available in multiple languages, DesignSpark Mechanical levels the playing field, allowing • Powerful and intuitive gesture-based modeling that you to compete in a allows anyone to create solid models almost instantly. much larger arena Pull, Fill, Move, and Combine tools enable hands-on 3D by enabling the fast design. creation of highly • Fast and accurate creation of highly professional professional concept concept designs for product proposals. designs for product • The ability to draw 3D extruded, revolved, and swept proposals. Developed geometry without ever leaving a 2D cross-section. in collaboration with • The ability to edit dimensional values simply by SpaceClaim – the selecting the element. leading provider • A flexible assembly structure, allowing parts to be of flexible and affordable 3D modeling software for engineers turned into an assembly and vice versa. – and TraceParts – the world’s foremost 3D content company – • Amendments and additions to designs can be made DesignSpark Mechanical allows you to be up and running within by non-CAD specialist engineers. No more waiting for minutes. It even generates its own Bill of Materials (BOM), saving the CAD department to make changes and alterations in design. • PCB circuit layouts can be imported via the IDF format. • Designs can be exported in STL format to enable rapid prototype builds via 3D printers. Visit DesignSpark.com/Mechanical to access an informative video, detailed product information, and a link to download the software, all absolutely free. 14 ELECTRONIC DESIGN THE GIFT OF INVENTION DESIGNSPARK MECHANICAL "U"MMJFE&MFDUSPOJDT XFMPWFIFMQJOHFOHJOFFSTDSFBUFXPSMEDIBOHJOHQSPEVDUT 0VSEFEJDBUJPOUPJOOPWBUJPOBOEQSPHSFTTJTXIZXFXBOUFWFSZEFTJHOFS UPFOKPZUIFCFOFåUTPGXPSMEDMBTTEFTJHOUPPMT %FTJHO4QBSL.FDIBOJDBMJTQPXFSGVM%NPEFMJOHTPGUXBSFUIBUJTFBTZUPMFBSO BOEQSPWJEFT BIJHIMZJOUVJUJWFVTFSFYQFSJFODFUPIFMQZPVDSFBUFHSFBUDPODFQUTGBTUFSUIBOFWFSCFGPSF DOWNLOAD DESIGNSPARK MECHANICAL FREE %JTDPWFSZPVSOFYUJOWFOUJPOBU XXXEFTJHOTQBSLDPNNFDIBOJDBM DESIGNSPARK MECHANICAL #306()550:06#: %PPMIH)PIGXVSRMGW-RG³%PPMIH)PIGXVSRMGW´ERHXLI%PPMIH)PIGXVSRMGWPSKSEVIXVEHIQEVOWSJ%PPMIH)PIGXVSRMGW-RG%R)PIGXVSGSQTSRIRXW'SQTER] LEADERS2013 LEADERS PROFILE AVNET: A GLOBAL LEADER IN DESIGN-CHAIN AND SUPPLY-CHAIN SERVICES ere at Avnet Electronics Marketing, we are committed to accelerating our customers’ success. As the top distributor in Hthe industry, our role is much more complex than just driving efficiencies and cost cutting. We need to do much more than that, both for our supplier and for our customers. We serve as growth enablers, quickly identifying supply network problems and disconnects, and developing supply chain solutions that leverage Avnet’s technical expertise, global footprint, and virtual systems, so we can meet our customers’ time-to- market demands. Avnet was recently recognized by Gartner as a supply chain top 50 company, the only distributor on the list. We were evaluated for our multi-tier supply chain and cost-to-serve analytical capabilities. Avnet’s leadership in applying demand-driven principles to drive business results is testament to the value-added integration services we offer. FLEXIBILITY. We have the industry’s broadest line card, most efficient and adaptable DESIGN CHAIN SOLUTIONS FROM AVNET global supply chain structure, and unparalleled technical offerings. Everything we do at Avnet is about forging new frontiers and promoting innovation. For example, part of our strategy for growth in 2013/14 includes paving the way for customers and suppliers to extensive education and training penetrate new markets and adopt emerging technologies, such as resources, including our SpeedWay™ high-brightness LEDs, renewable energy and smart power technology. design workshops, global X-Fest technical Through our Avnet Embedded division and Rorke Global Solutions series and ARM design seminar series, business unit, Avnet is in an excellent position to capture the growing help to demystify new technologies and demand for embedded technologies, particularly in IT infrastructure accelerate designs implementing cutting- in support of the cloud and mobile computing. Furthermore, our edge devices. It’s no wonder that the industry’s top global companies look to Avnet for results. As a global distribution leader with more than 90 years of supply management experience, as well as innovative, value- added services, Avnet can offer more than any competitor when it comes to reducing commercialization time, developing strategies for reducing costs, and delivering rapidly scalable, customized supply chain solutions. SIMPLIFIED. SUPPLY CHAIN SOLUTIONS FROM AVNET 16 ELECTRONIC DESIGN SIMPLIFIED. SUPPLY CHAIN SOLUTIONS FROM AVNET Your job is to develop and market innovative products; our job is to reduce your risk along the way. Even leading edge products need a cost-effective and dependable supply chain to be a success. That’s where Avnet can help. Around the world and around the clock, you can rely on our expertise at every point in the supply chain – from supply chain assessment to solution design to global planning. Avnet’s supply chain solutions save you inventory and infrastructure. That’s money in the bank, and the edge you need to stay ahead of the competition. Simple, really. What can we do for you? www.avnetexpress.com Accelerating Your Success!™ 1 800 332 8638 | www.avnetexpress.com | @avnetdesignwire Consumer Electronics 1. Strategic Polymer’s Awake keyboard prototype employs polymer-based feedback for each key. fashion as when a cursor hovers over a button or menu item can do tricks like automatically switching from portrait to and a help bubble appears. landscape mode. Smart phones and tablets also then can be Feedback mechanisms can be divided into motorized, used as game controllers and remote control devices. piezoelectric, and polymer actuators. Rotating and linear Android phones and iPhones can be used to fly Parrot’s motorized systems have been very common, but some of the AR.Drone electric quadrotor UAV. The interface takes advan- latest controller chips can provide sophisticated feedback tage of these sensors as well as the touchscreen, which also dis- mechanisms that are easy to coordinate. Piezoelectric systems plays the output from the UAV’s on-board cameras. This pro- can be very compact, allowing them to be employed in places vides a better control mechanism than a touch interface alone. where it would be difficult to place a motorized actuator. Sensor fusion crops up with multiple sensors. It enables the Polymer-based systems are even more compact, so they creation of virtual sensors. For example, a 3D virtual position can be used for localized feedback. Strategic Polymer’s Awake sensor could be based on inputs from a GPS, an inertial navi- keyboard prototype (Fig. 1) implements feedback for each key gation system (INS), plus 3D accelerometers and gyroscopes. using electromechanical polymer actuators (EMPs). The tech- The virtual sensor would use the information from all of these nology allows extremely thin systems. sources, but sometimes some may not be available. Pen interfaces complement touch interfaces. They can be For instance, GPS will not work in certain areas where implemented using the same technology used for finger touch radio reception is poor. INS systems tend to be power-hungry, recognition, although controller chips tend to specialize in whereas accelerometers tend to use very little power. A low- stylus and multi-touch support. power device may not provide high accuracy, but it may be Pens are more precise than fingers. This is useful for many sufficient in many instances. It may also be the only one that is applications including drawing. Pens can take advantage of available in a particular location or time frame. the high accuracy of their sensing systems. They also can have Non-traditional control systems with multiple sensors and buttons that improve their functionality once the user under- sensor fusion abound these days. Google Glass is one example stands what the buttons can be used for. (Fig. 2). Users simply look up to see a large screen that’s really Keyboards, both physical and now virtual, unfortunately have reduced cursive penmanship to a dying art. The new pen interfaces probably won’t change this trend, but the interface is likely to remain useful. At this point the challenge is actually more on the application side rather than the hardware, though there is little demand for more stylish pens as there has been. GAMING THE MOTION SYSTEM More mobile devices like smart phones and tablets are incorporating microelectromechanical systems (MEMS) like 3D accelerometers and gyroscopes. These components can 2. Sahas Katta’s Glass Tesla application enables Google Glass users determine their orientation so smart phones and tablets, then, to control some of their Tesla car functionality. 18 ELECTRONIC DESIGN really a fraction of an inch. There is also 3. The Oculus Rift 3D virtual reality personal a camera, 3D accelerometers, display from Oculus VR uses 3D gyroscopes and audio feedback. to track head movement. Voice commands and phone calls can be made using the Gaming is not the only place where device when it’s linked via Bluetooth virtual reality will make a difference. In to a smart phone. Audio feedback uses fact, non-gaming applications will like- bone conduction technology rather than ly be more important as the technology an earbud. becomes more available such as Sixense’s One needs to experience Google Glass to understand how MakeVR software, an easy to use 3D CAD system. it changes the way one deals with a hands-free system. Speech recognition is important since it is used to initiate functions 3D VIDEO IMAGE RECOGNITION such as taking a picture or asking for directions. Imagine look- 3D video playback has not been successful in the HDTV ing at a 3D map of your current location and turning your market, but 3D image recognition has. Microsoft’s original head to see what is nearby. Kinect, based on PrimeSense 3D imaging technology, has Sahas Katta’s Glass Tesla application runs on Google Glass. been a huge hit for Microsoft’s XBox. It has also been a boon It is designed to work with a Tesla electric car, providing loca- for robotics developers. tion and charging information as well as limited control of The second incarnation of the Kinect utilizes a different the vehicle. Glass Tesla provides a way to wear sensors and a time-of-flight technology developed by SoftKinetic. In this display, which is a conventional 2D display for one eye. case, a simple infrared emitter is used and a special image sen- Oculus Rift is a 1080p, 3D, virtual reality headset from Ocu- sor can detect the timing associated with the light pulses. lus VR (Fig. 3). Built-in 3D gyroscopes track head movement SoftKinetic provides development platforms that work in so the images presented to the displays in the headset can near-field configurations like that found in front of a laptop or provide a virtual reality environment. far-field that would be needed for a stand-up gaming system The head isn’t the only thing to track with the absolute 3D like the Kinect. The primary difference between near-field positioning technology from Sixense. It uses a rotating mag- and far-field operation is the intensity of the infrared diode. netic field to track multiple sensors, which can deliver high- Far-field operation requires more power that would blind the precision, absolute position information under 1 mm. The sensor in near-field operation. STEM System is a successful Kickstarter project that provides The Creative Senz3D looks like a typical HD clip-on USB 3D hand controllers and clip-on sensors to more accurately camera, but it incorporates the near-field version of SoftKi- track body movement (Fig. 4). netic’s engine (Fig. 6). Like HD cameras, the 3D systems could The ultimate is a combination of Oculus Rift, Sixense’s be built into mobile devices like laptops and tablets. STEM System, and Virtuix’s Omni (Fig. 5). The Omni is a plat- Microsoft provided a software development kit (SDK) for its form as well as an interface device. The combination is prob- Kinect platform after hackers turned the initially closed device ably the closest thing to a holodeck that can be achieved today. into a practical tool. Now gesture recognition can Users stand in the middle of the Virtuix Omni plat- be achieved using the Kinect for applications form. It has a low-friction, grooved surface with a like robotics. The SDK does the heavy lifting, low-angle, bowl-like architecture. Users wear a including support for skeletal tracking and special set of pinned shoes that slide easily 3D gesture recognition. along the groves. This stabilizes the feet Intel’s Perceptual Computing SDK is and prevents sliding sideways. Users slide another framework for working with 3D back to the center even when walking in imaging and more because it also address- any direction. es other sensor inputs including audio. Users also wear a belt that is connected to the Creative’s Senz3D is the 3D imaging hard- stabilizing ring. They can then walk, run, jump, and ware reference platform for the SDK. slide in place. It is very good but not perfect. Yet another 3D imaging technology The system translates general movements into actions is available from LeapMotion. Like the that a game can take advantage of so the dis- aforementioned platforms, it is available play presented on the virtual reality headset 4. The Sixense STEM System uses mag- as a USB-based device and supported by will replicate these actions in the virtual world. netics to provide absolute 3D position- gesture recognition software. LeapMotion’s Virtuix Omni will work with other controllers ing information for multiple wireless as well. sensors including hand control units. (continued on p. 49) GO TO ELECTRONICDESIGN.COM 19 LEADERS2013 LEADERS PROFILE FRONT PANEL EXPRESS CUSTOM ALUMINUM INSTRUMENT PANELS IN EXPRESS SERVICE ront Panel Express offers custom front panels and enclosures with no minimum quantity require- ments and optional same day delivery. Designing and ordering is made easy through the complimen- Ftary CAD software, Front Panel Designer. The software offers instant pricing, standard discounts, and a variety of materials and finishes to choose from. Once a design is submitted online, Front Panel Express manufactures premium quality products with modern CNC technology. The idea for Front Panel Designer came from the realization that many engineers designing electronic products face a similar challenge sourcing small runs of custom front panels. Front Panel Express operates with a CAD/CAM system adapted to the production of front panels, which allows Front Panel Designer files to be quickly and efficiently transferred to CNC milling machines. From the customer’s perspective, the four- step customization process is as easy as downloading Front Panel Designer, designing the front panel to the required specifications, submitting the order through the integrated order program, and receiving the fin- ished product within the chosen production time. COST EFFECTIVE PROTOTYPES AND PRODUCTION RUNS NOT ONLY DOES Front Panel Express’ free CAD software enable everyone to design a custom machined product, but it also lets customers actively participate in the production process. Typically, manufacturers don’t allow customers to program the machines. However, at FPE, the panel files are directly converted into a milling program and customers only pay for actual machine time. Production runs will reduce machine time by milling multiple parts in one setup, which in return provides higher discounts. WHO USES FRONT PANEL DESIGNER? THE SIMPLICITY OF the design and order process attracts both engineering departments of large corporations and small businesses in a variety of industries. Hobbyists also welcome the fast and cost efficient manufacturing service of Front Panel Express. The high quality standards, the express turnaround and the cost efficiency satisfy engineers and technology enthusiasts within the US, Canada, Asia, and Australia. 20 ELECTRONIC DESIGN Custom-Designed Front Panels & Enclosures From single prototype or production runs, we quickly provide professional panels to meet your needs. Easy 4 Steps To Your Custom Front Panel 1 FREE Software! Download and install FREE the FREE Front Panel Software Designer software Create professionally finished parts for all your electronics 2 applications quickly! You design it We machine it Design to your FREE design software Material specifications Download your FREE copy of our design Choose from aluminum, acrylic or software, at FrontPanelExpress.com. powder-coated in a variety of 3 Available for Windows, Mac and Linux. thicknesses and colors, or provide your own material. Quality service We specialize in front panel design, and Enclosures Front Panel Designer offers full are here to make your project a success. Place your order Profit from our years of experience, not flexibility in designing unique only as engineers, but also as customer enclosures, or select from a variety service specialists. Talk to our expert of standard options. 4 designers, or learn more by visiting Express service available our website. Choose from the standard 5-day lead time, or the 1- and 3-day express options. Receive your product FrontPanelExpress.com 1-800-373-9060 [email protected] LEADERS2013 LEADERS PROFILE ALPHA AND OMEGA SEMICONDUCTOR LIMITED COMMITTED TO BECOME A TOTAL POWER SEMICONDUCTOR SOLUTION PROVIDER WHO WE ARE ounded in 2000 with headquarters in the core of Silicon Valley; Sunnyvale, California, USA – Alpha and Omega Semiconductor Limited, or AOS, is a designer, developer and global supplier of Fa broad range of power semiconductor products. AOS’s products are aimed at, but not limited to applications such as portable computers, flat panel TVs, LED lighting, smart phones, battery packs, consumer and industrial motor controls, and power supplies for TVs, computers, servers and telecommunications equipment. AOS’s goal is to support our customers’ success by delivering excellence in design, value, quality and service. We are committed to building strong partnerships with our customers – from understanding their technology requirements, to delivering solutions to meet their product road maps, to providing technical expertise and consulting throughout the process. With an 8-inch in-house wafer fab located in Hillsboro, Oregon, two packaging facilities in Shanghai, China, and a global sales and technical support workforce, we are well positioned to deliver the highest level of value, quality, service and support to our customers. OUR TECHNOLOGY AOS’S GOAL IS to be a leader in Power Semiconductors through delivery of best-in-class products and service for our customers. We have established a well honed technology engine that includes the cutting edge capabilities of our in-house world class wafer fab and packaging facilities. These powerful resources at our R&D team’s disposal provide the ideal breeding ground to accelerate the release of new technology, which has already tripled in pace in the last few years. OUR PRODUCTS AOS’S MAIN PRODUCT categories are power discretes and power ICs. The discrete portfolio consists of a wide voltage range of power MOSFETs and IGBTs – delivering power by switching, transferring or converting electricity. The Power ICs portfolio uses a multi-chip approach, leveraging AOS IC design know- how, discrete silicon technology, and advanced packaging capabilities. 22 ELECTRONIC DESIGN %ULQJ'RZQ7KH+HDWZLWK;6)(7 DĞĂƐƵƌĞŵĞŶƚŽŶĚŝƚŝŽŶƐ͗s'^сϭϬs ϭϮϬ %HVWLQFODVVSHUIRUPDQFHDQGSRZHUGHQVLW\ ^ƚĂŶĚĂƌĚ&EͲϱdžϲ FULWLFDOIRUKLJKHIILFLHQF\VHUYHUWHOHFRPGDWDVWRUDJH y^& dͲϱdžϲ ȴϯϲΣ ϭϬϬ DQGPRWRUFRQWURODSSOLFDWLRQV ဒϬϬ ȴϯϭΣ ;6)(7LVDSDFNDJLQJWHFKQRORJ\WKDWHQDEOHVWKHPRVW HIIHFWLYHWUDQVIHURIKHDWWRWKH3&%JURXQGSODQH ȴϮϲΣ ϲϬϬ KHOSLQJWRUHGXFHSRZHUORVVHVE\NHHSLQJWKHGLHFRROHU ȴϮϬΣ dĞŵƉĞƌĂƚƵƌĞ;ΣͿ 7KLVQHZH[SRVHGVRXUFHSDFNDJLQJVROXWLRQRIIHUV ϰϬϬ ȴϭϬΣ VWDQGDUGOHDGIUDPHEDVHGERDUGPRXQWLQJLQDIXOO\ HQFDSVXODWHG')1PROGHGSDFNDJHPLQLPL]LQJWKH ϮϬϬ ϱ ϭϬϭϱϮϬϮϱϯϬ WKHUPDOGLVFUHSDQF\EHWZHHQWKHGHYLFHDQGWKH3&% ƵƌƌĞŶƚ;Ϳ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edical Electronics IN ELECTRONICS ROGER ALLAN | CONTRIBUTING EDITOR [email protected] GETPersonal YOUR PRESCRIP Electroni Leading-edge technologies coming together promise to revolutionize healthcare by focusing on the patient, reducing costs, accelerating diagnostics and therapeutics, and improving delivery. he convergence of four pervasive technologies—ubiquitous sensing, wireless connectivity via smart phones and tablets, cloud computing, and social network- ing—is rapidly driving the development of “personal” medical electronics for diagnostics, monitoring, and therapeutics. Some call it digital health, e-health, Telectronically enhanced medicine, m-health (mobile health), or personalized healthcare, emerging as the next generation in healthcare diagnostics and preventive medicine that will be independent of time and place of treatment. THE ROLE OF SENSORS Personal medical care will depend on a host of sensors embedded in a wearable device or even implanted within the body that will send the patient’s medical information wire- lessly to the doctor or healthcare facility. The result will be lower costs, better quality, more convenience, and faster results. Major companies like Apple, Google, and Microsoft are getting into the wearable computing business for wellbeing and healthcare applications. Speaking at the Microelectronics Packaging and Test Council meeting in San Jose in May, microelectromechanical systems (MEMS) pioneer Janusz Bryzek, vice president of development for MEMS and sensing solutions at Fairchild Semiconductor Corp., pre- dicted the implementation of e-health in a broad scale of sensing and actuating medical 24 ELECTRONIC DESIGN TIONMedical FOR cs GO TO ELECTRONICDESIGN.COM 25 LEADERS2013 LEADERS PROFILE EMCO HIGH VOLTAGE CORPORATION PERFORMANCE HIGH VOLTAGE POWER SUPPLY MANUFACTURER Leading the industry in designing and manufacturing high voltage power supplies or more than 40 years, EMCO High Voltage Corporation has supported the high voltage needs of original equipment manufacturers, research laboratories, and educational institutions worldwide. We design and F manufacture highly reliable, performance-driven high voltage solutions backed by timely, zero-defect production support. Our leading designs have resulted in several awards, including the Key Partner Award from the University of Wisconsin for project ICECUBE, Product of the Year from Electronic Products Magazine, and Product of the Year from the University of California, Davis. EMCO remains at the forefront of the high voltage industry, because we understand how to leverage innovation to help our customers meet their design challenges. Whether you are developing sensitive laboratory instruments or mission-critical scientific equipment that must perform under extreme conditions, you can depend on our products to fulfill your need for high performance and reliability. STANDARD PRODUCTS EMCO’S HIGH VOLTAGE DC power supplies are designed for use in a wide range of applications. Our products provide outputs of up to +/- 33kV at 0.5 to 15 watts and accept input voltages of 5, 12, 15, 16, and 24 volts. They feature proven reliability and integrated protection features. Choose from surface-mount, thru-hole, and leaded solutions. RoHS products are available, and many products are UL listed. CUSTOM AND SEMI-CUSTOM PRODUCTS EMCO CAN DEVELOP a modified or custom product that meets your unique specifications. We have more than four decades of experience designing and manufacturing custom and semi-custom solutions using high reliability components and proven processes. 26 EMC O CB S ER I E S NEW line of 10kV power supplies INTRODUCING THE CB Series Precision regulated, reliable and compact, the CB Series offers big performance in a miniature package. The newest addition to EMCO’s lineup provides an output of 0 to 10kV at 1 watt and accepts a wide input voltage range of 11.5 to 16 VDC. The CB Series features current and voltage monitoring, built-in protection against programming overvoltage and thermal shutdown. Temperature drift is typically less than 100 PPM/˚C. Low output ripple, very low EMI/RFI and tight regulation make the CB Series ideal for integration into sensitive equipment. To learn more about the CB Series, please visit www.emcohighvoltage.com Features Applications • Regulated • Electrophoresis • Wide Input Voltage Range 11.5 – 16 VDC • Deflection Plates • Built-in Programming Voltage • Capacitor Charging • Built-in Thermal Shutdown • Electrostatic Field Generator • Voltage Monitor • Insulation Testing • Current Monitor • Image Intensifier LEADERS2013 LEADERS PROFILE ADVANCED CIRCUITS LEADING the PCB INDUSTRY in QUALITY & INNOVATION A TRUE LEADER IN THE ELECTRONICS INDUSTRY or over 25 years, Advanced Circuits has been leading the PCB industry in quality and innovation for prototype through large scale PCB production and now offers in-house expedited assembly capabilities for small quantity F engineering prototypes making Advanced Circuits a true One-Stop PCB resource. Expanding with acquisitions over the past four years in New Hampshire, Arizona, and Minnesota, Advanced Circuits is ranked among the top three board fabricators in North America and is well-known for its reliability, dependability, and exceptional customer service. With consistent capital investment and expanded capabilities, Advanced Circuits has become a leader in not only the commercial PCB arena but also in the high-reliability, military/ aerospace/defense, and high technology marketplace. Advanced Circuits accepts Military Contracts, is MIL-PRF-31032, MIL-PRF-55110G, AS9100C, ISO 9001:2008, and UL Certified, IPC 6012 Class 2, 3 and 3A Qualified, and ITAR Registered. For more information on Advanced Circuits, visit www.4pcb.com. EXCLUSIVE SERVICES AN INNOVATOR IN PCB services, Advanced Circuits offers Free Design for Manufacturability checks at www.FreeDFM.com and Free downloads for “PCB Artist” Layout Software at www.PCBArtist.com. “PCB Artist” is top-ranked by users and offers schematic to PCB layout design, Autorouter, and Netlist import with Gerber format available. FreeDFM has been called a “lifesaver” by engineers and provides a graphical report within minutes identifying file or design errors. CUSTOMER-FOCUSED LEADERSHIP JOHN YACOUB IS President/CEO of Advanced Circuits and although he has received recognition for leadership, he gives credit for the Company’s success to the focus all employees give to customers. As he emphasizes daily: “At Advanced Circuits, customer excellence is our #1 priority with TOTAL QUALITY in every department.” 28 ELECTRONIC DESIGN Your Total PCB and Assembly Solution Advanced Circuits has the staff, technology and experience to provide you with the highest quality circuit boards & assembly. “I’ve just received my first batch of boards from Advanced Circuits and want to say how pleased I am. The customer service, technical support and finish product delivered by AC are all absolutely first rate.” - N.L. Why buy from Advanced Circuits? Enhanced Capabilities ■ 100% U.S. Based Manufacturing Multiple divisions with broad-based technical expertise enable Advanced Circuits to create special products ■ Fab + Assembly as Quick as One Day for all markets. We supply boards with unique product ■ Industry's Largest Team with Over 100 demands to meet our customer’s design criteria. Sales & Support Personnel ■ Up to 40 Layers ■ Laser Drilled Microvias (HDI) ■ ■ (LDI) ■ Industry's Best On-Time Shipping Record .0025" Trace/Space Laser Direct Imaging ■ Air Pockets Between Layers ■ Stacked Microvias ■ Expedites are our Specialty ■ Via-in-Pad ■ Down to .3mm Pitch ■ Cavity Boards ■ Heavy Copper (up to 20 oz.) ■ Same Day & Weekend Turns ■ Buried Chip Resistors ■ Blind & Buried Vias ■ 24 Hour "Live" Tech Support ■ Oversized Boards ■ Multilayer RF Designs (up to 37"x 120") (up to 8 layers) ■ No Minimum Order ■ Free Tooling on Standard Spec Orders ■ Space & Flight Approved PCB Supplier ■ Instant Online Quotes, Orders, & Status ■ Industry's Largest Customer Database ■ Special Pricing & Programs for Engineering Students Advanced Circuits 21101 E. 32nd Pkwy, Aurora, CO 80011 1-800-979-4722 · www.4pcb.com Advanced Circuits Committed to total quality in every department by doing it right the first time Medical Electronics devices such as out-of-body ultrasound and X-ray scanners, field. In 2011, the U.S. Food and Drug Administration (FDA) dialysis machines, on-the-body wearable devices to monitor gave its approval to Telcare Inc. to market the first cellular- health and wellness, in-the-body infusion pumps, and blood enabled and portable blood glucose meter, the BGM, which glucose sensors. connects diabetes patients with their healthcare providers and More than a dozen startups offering families. The BGM works with an FDA-cleared database wearable devices aimed at fitness and called Telserve to aid patients in the manage- healthcare applications have emerged. ment of diabetes. Many of these devices are used for per- Portable and wireless phones can also be sonal fitness monitoring, but they also used to monitor adherence to prescribed have potential in personalized medical drugs and compliance with dosage direc- monitoring and diagnostics. For example, tions. “Technology is at the heart of what the Nike+ FuelBand from Nike Inc. uses wear- we do,” says Aunia Grogan, CEO of Atlantis able sensors and low-power ARM-based Healthcare. The company develops and cores to track and display what the compa- 1. The Nike+ FuelBand from Nike Inc. executes interventions to address treat- ny calls NikeFuel by counting the wearer’s tracks and displays what the company ment adherence, which Grogan sees as daily activities (Fig. 1). calls NikeFuel, which counts the wearer’s a rising cost caused largely by patients’ Soaring costs of healthcare expenditures daily activities. belief in the effectiveness of their medica- worldwide are driving personal, portable, tions and the severity of their illnesses. and wireless healthcare innovations. On a gross domestic “The strategic use of technology is critical to effectively deliver product (GDP) per capita basis, the U.S. spends about twice mass personalization, ensuring the right person receives the the amount of developed countries. According to the Office right message at the right time and in the right way.” of the Actuary of the U.S. Center for Medicare & Medicaid One of these technology tools is the Raisin system from Services, the U.S. spent about $2.6 trillion in 2010, which is Proteus Biomedical. According to the company, patients don’t projected to surpass $4.5 trillion by 2020 (Fig. 2). take 30% to 50% of their prescribed medications, and the costs To empower the development of mobile and wireless of hospitalization due to non-adherence are very high. The healthcare for consumers, Qualcomm formed the $10 mil- Raisin system uses a swallowable pill that marries medicine lion Tricorder XPRIZE competition. The aim is to come up and mobile computing technologies to solve this problem. with a tool capable of non-invasively capturing health metrics Sensors send wireless signals through the body to a receiver and diagnosing a set of 15 diseases using the latest advances that records the type of drug taken, the dose, and the place in wireless sensing, imaging, and portability technologies to of manufacture. The system also measures heart rate, body replace costlier and bulkier laboratory equipment. activity, and respiratory rate. Thin-film MEMS layers on each The Tricorder XPRIZE began in late 2010. That’s when ingestion event maker (IEM) are activated and powered using Peter H. Diamond, CEO of the XPRIZE Foundation, met stomach electrolytes. The system modulates and pulses the with Don Jones, vice president of global strategy and market current flow to encode information stored in it. It then com- development at Qualcomm’s Wireless Health Group (now municates this data through the body tissue, where a receiver Qualcomm Life Inc.), and Paul E. Jacobs, CEO and chairman worn on the patient’s skin detects an electric field. of Qualcomm and the Qualcomm Foun- dation, to kick off the program. $5.0 Mobile phone maker Nokia has joined $4.5 the Qualcomm competition with its own $4.0 Private Medicare $2.25 million XCHALLENGE, which $3.5 Medicaid $3.0 encourages teams to build sensing tech- Out of pocket $2.5 nologies for use in identifying and diag- Other nosing diseases. Judges for the competi- $2.0 tion have chosen 12 innovative hardware $1.5 and software sensing technologies to $1.0 advance as finalists in the first challenge, National expenditures (in trillions) $0.5 based on technology trustworthiness, $0 1980 1990 2000 2010 2020 privacy and security, standardization, Year and interoperability. Wireless and portable medical diag- 2. The U.S. spent about $2.6 trillion on healthcare in 2010, and that will grow to over $4.5 trillion nostics have already been proven in the by 2020. (courtesy of the Office of the Actuary of the U.S. Center for Medicare & Medicaid Services) 30 ELECTRONIC DESIGN SENSING AND POWER CHALLENGES 3. The BodyMedia FIT wearable calorie-count- According to Phillipe Kahn, ing healthcare monitor delivers read- founder of Fullpower Technolo- ing accuracies greater than 90%, the gies Inc., makers of wearable best outside of a laboratory. Four medical products must overcome sensors provide the right size, cost, three main challenges before their and functional relevance. products see greater acceptability in mobile health. They’ll need to functional relevance working be more innovative, create small- together to predict the most accu- er and more accurate sensors, and rate calorie burn information out- improve battery performance in terms of side of a laboratory. One sensor measures smaller size, longer lifetimes, and suitability galvanic skin response due to sweating. A for wearable medical products. Kahn created the first three-axis accelerometer measures motion and the camera phone in 1997 and is a pioneer in wearable electronics. number of steps taken. A temperature sensor measures body Kahn says that his company’s MotionX mobile sensing heat. And, a heat flux sensor measures the rate heat is dissi- technology platform, which is embedded in products from pated from the body. Nike, Jawbone, Pioneer, and JVC, is the result of innovative Samsung Electronics has embarked on a forward-looking thinking from Fullpower Technologies. “We have a strong vision that is bound to dramatically change wireless mobile focus on breakthrough algorithmic power management health and define the next decade of medical technology. that is above and beyond other solutions on the market,” he Speaking at this year’s MobileBeat Conference, Samsung’s explains. “This applies to wearable computing applications as president and chief strategy officer Young Sohn showed well as smart phones.” a video demonstrating a foldable form factor for Kahn also says that many health and fitness wearable mobile large displays, photonic crystal reflective lighting that medical products can provide readings that are within the 15% requires no backlighting, and RF wave sensors integrated to 20% range in accuracy, which paints the wrong picture of within worn patches that check and transmit a patient’s a patient’s medical data. He says that levels of 5% accuracy or health data. better are needed. Accuracy can be crucial, for example, in Sensors don’t need to be integrated into a wearable device, diagnosing lower back pain and gout during a long gait. Samsung demonstrated. Instead, they simply can be used as BodyMedia claims to have the highest accuracy for a wear- connected add-on accessories. The folded display form factor able fitness monitor in its FIT calorie counter, with accuracies allows the expansion of the display screen without drawing greater than 90% (Fig. 3). Its on-body multi-sensor platform additional battery power. meets FDA Class II category regulations and conforms to the Wearable e-health portable devices require a certain degree ISO 13485 standard. More than 150 clinical studies verified of sensor fusion that intelligently combines and processes data this accuracy claim, claims BodyMedia. streams from multiple sensors, producing an output whose Unlike other wearable body monitoring devices, the FIT sum is greater than the individual inputs combined. Many includes four sensors that provide the right size, cost, and sensor fusion products are available in hardware and software 4. Medical implants such as insulin infusion pumps, cardiac pacemakers and defibrillators, drug pumps, and neuro-stimulators all depend on Microsemi’s ultra-low-power medical implantable communication service (MICS). It connects the ZL70102 wireless RF transceiver chip in a module implanted in a patient’s body to a module within an external monitoring basestation. Implant medical device MICS band Basestation data link Host microcontroller ZL70102 ZL70102 Basestation controller 2.4-GHz Battery wakeup link 2.4-GHz Remote wakeup monitor transmitter GO TO ELECTRONICDESIGN.COM 31 LEADERS2013 LEADERS PROFILE LINEAR INTEGRATED SYSTEMS, INC. JOHN HALL’S start-up career began in 1962 when he was hired WEB |linearsystems.com to help found Union Carbide’s semiconductor operation with EMAIL | [email protected] Silicon Valley legend Jean Hoerni. Since that time, he invented TEL |800.359.4023 the semiconductor design and process technology for a series of FAX | 510.353.0261 groundbreaking, successful commercial products, including: the *we are also on twitter, facebook, first electronic watch; the first LCD digital watch; the first CMOS youtube, google + liquid crystal display hand-held calculator; the first electronic camera shutter, voice synthesizers; color autofocus cameras; computerized programmable heart pacemaker and the low-power programmable first electronic camera shutter, the first low-cost ICs highly heart pacemaker; and the first resistant to nuclear radiation, stationary phased array computerized heart pacemaker. radar systems, frequency synthesizers, handheld digital Hall also provided services to voltmeters, hand-held LCD calculators, molybdenum gate the U.S. Government for important MOS process used for cellular phone construction, and the new military technologies, first one-chip analog-to-digital converters. including: a combination linear/ digital low-cost sonobuoy IC; the phased array radar module for the Hall has provided decisive technological advantages to B-1B bomber; the first radiation-hardened computer for a classified cutting-edge devices, including: program; and a high-speed data acquisition system for a long-range infrared missile detection system. • CMOS technology and electronic watch application (Seiko) Each of these commercial and military programs involved Hall • First computerized heart pacemaker (Medtronic) personally inventing new solutions for electronics problems that had • First electronic camera shutter (Canon) eluded other developers. Many of these solutions included making • First printing calculator (Seiko) fundamental advances in semiconductor technology. • First pocket pager types (Harris, Kokusai) Hall founded Micro Power Systems in 1971 with work that included • Cellular phone technology (Nokia) low-power CMOS integrated circuit designs he used in the first Hall founded Linear Integrated Systems, Inc., in 1986 to create new, higher-performance discrete semiconductors in addition to producing components he developed at Union Carbide, Intersil and Micro Power Systems. Linear Systems’ product line consists of JFETs, BIFET amplifiers, bipolar transistors, current regulating diodes, lateral DMOS switches, low-leakage diodes, MOSFETs, photoFETS and voltage controlled resistors. Linear Systems offers pin- for-pin replacements for current, discontinued, or selected devices made by Analog Devices, Siliconix-Vishay, Fairchild, National Semiconductor, Toshiba, NXP, and Phillips. These discrete semiconductor products are designed to meet the needs of today’s demanding new designs with additional screening, ROHS/Non-ROHS packaging options. 32 ELECTRONIC DESIGN LEADERS2013 LEADERS PROFILE ADLINK WEB | www.adlinktech.com TECHNOLOGY TEL | 408.360.0200 E-MAIL | [email protected] BUILDING BLOCKS & INTELLIGENT PLATFORMS ADLINK TECHNOLOGY PROVIDES a wide range of Extreme ITX, AdvancedTCA®, CompactPCI®, and VPX standards. Rugged™, rugged and industrial embedded computing ADLINK‘s test and measurement solutions encompass data products to the communications, medical, defense, acquisition and I/O; vision and motion control; and PXI/ transportation, and industrial automation industries. PXI Express chassis, controllers, and modules. Our touch ADLINK’s offerings include single board computers (SBCs), computing line features smart computers, display systems, and blades, systems, and platforms based on PC/104, Mini- industrial handheld devices. We also continue to expand our extensive line of computer-on-modules (COMs) using COM Express and ultra low-power SMARC form factors. ADLINK recently introduced our Smart Embedded Management Agent (SEMA), a set of deeply embedded functions built into all ADLINK modules to enhance embedded systems reliability and offer end user support during initial systems integration and customer carrier bring up, with device access and remote management available through the SEMA Cloud M2M platform. DESIGN PHILOSOPHY ADLINK IS A global company with headquarters ensure that the standards continue to meet our and manufacturing in Taiwan; R&D and customers’ needs. integration in Taiwan, China, the US, and ADLINK is an Associate Member Germany; and an extensive network of of the Intel® Intelligent Systems worldwide sales and support offices. Alliance, an Executive Member of By offering both in-house design PICMG, a Sponsor Member of and manufacturing—a service the PXI Systems Alliance, an combination as valuable as it is Executive Member of the PC/104 rare in our industry—we maximize Consortium, an initial member rugged design capabilities of SGeT (Standardization Group and capitalize on smart design for Embedded Technologies), principles such as Application a Strategic Member of the AXIe Ready Intelligent Platforms (ARIPs) Consortium, and a member that integrate both hardware of VMEbus International Trade and software to facilitate better Association (VITA). ADLINK is also performance, faster time-to-market, and ISO-9001, ISO-14001, ISO-13485, and reduced risk and cost of ownership. TL9000 certified. ADLINK believes that standards-based design supports our efforts to reduce cost, risk, and time-to-market for our customers, and also enables them to focus on their core competencies. We lead and actively participate in standards committees to drive innovation and 34 ELECTRONIC DESIGN Computer-on-Modules (COM Express, SMARC, Q7) Small Form Factor PC/104 Single Board Computer 3U CompactPCI Processor Blade Rugged Fanless Computer System Smart Touch Computer Learn more about ADLINK’s low power designs with the latest Intel® Atom™ & Intel® Celeron® processor-based SoCs. LQIR#DGOLQNWHFKFRP ©2013 ADLINK Technology, Inc. All specifications are subject to change without further notice. All products and company names listed are trademarks or trade names of their respective companies. Medical Electronics packages that are often proprietary to a specific vendor, usu- technology companies worldwide collaborating to improve ally tied to that vendor’s sensor offerings. the quality of personal healthcare. Researchers now are looking at data fusion rather than just Parker also sees ZigBee as another communications pro- sensor fusion. Many experts consider this approach the key to tocol that offers designers some capabilities in meshing net- enabling more intelligent applications, which will be needed works. “It allows us to follow an individual through a home in e-health devices. or through a relatively large-square-foot setting. Bluetooth simply can’t accomplish that. It’s got a 33-foot limit, whereas HONING COMMUNICATIONS CHIPS with ZigBee, with its meshing points, we can basically moni- Semiconductor IC manufacturers have long been serving tor the entire facility, whether it’s on a single floor or multiple the medical community with highly integrated, low-power, floors,” he says. and accurate devices, attributes required in portable and wear- Medical implants are omnipresent, and many are linked to able wireless communications products. Renesas Electronics home networks. According to Janus Bryzek, 600,000 of the 2.5 is collaborating with Belgium’s IMEC to advance wireless million medical implants such as pacemakers that are already communications with the first multi-standard RF receiver and deployed are linked via home networks for remote sensing an analog-to-digital converter (ADC) CMOS IC manufac- and monitoring. tured on a 28-nm process. The devices target LTE-Advanced Medical implants such as insulin infusion pumps, car- and next-generation Wi-Fi communications. diac pacemakers and defibrillators, drug pumps, and neuro- “Using a 28-nm CMOS process allows us to offer high levels stimulators all can use Microsemi’s ultra-low-power medical of integration and low power levels, increasingly important implantable communication service (MICS). It connects the parameters for the latest and future wireless communica- ZL70102 wireless RF transceiver chip in a module implanted tions devices,” explains Renesas’ Nelson Quintana, director of in a patient’s body to a module within an external monitoring marketing. “We’ve been supplying extremely low-power and basestation (Fig. 4). highly accurate devices to the medical community such as our MICS operates in the 402-MHz to 405-MHz band and RX100 32-bit entry level microcontroller (MCU).” consumes less than 6 mA in the transmit/receive modes, 290 Silicon Laboratories is acquiring Norway’s Energy Micro nA in the listen before transmitting mode, and just 10 nA in AS, one of the first companies to develop 32-bit MCUs based the sleep mode. Micosemi’s ZL70321 implantable radio mod- on a licensed ARM-Cortex-M3 core with an emphasis on low- ule works with the ZL70102 and has an integrated matching power and battery operated applications. Silicon Laboratories network, a surface acoustic-wave (SAW) filter for unwanted is trying to develop a critical mass in its pursuit of the wire- blockers, and an extra low-noise amplifier for maximized less and embedded Internet of Things (IoT) market, which receiver sensitivity. includes portable medical electronics. Researchers at Switzerland’s Centre Suisse d’Electronique et Bluetooth low energy (BLE) is serving as a good connectivity de Microtechnique (CSEM) are working on the WISERBAN model for e-health devices. It suits applications that send lim- project for much smaller implantable medical devices that will ited data and need to operate from very low power levels, like feature smarter communications and consume less power. blood pressure monitors and pulse oximeters. Such e-health This project will develop an ultra-miniature wireless body devices are more likely to operate at home or in a doctor’s office. area network (BAN) comprising a 2.4-GHz radio, a micro- But hospital and clinical settings involve larger volumes of data, processor for sensor data processing, and RF MEMS devices and medical devices generally operate from larger batteries or for improved radio performance, all within a 4- by 4- by an ac power source. That’s also the case for implantable devices 1-mm system-in-package (SiP) housing, and consuming just like infusion pumps for delivering insulin to the pancreas. Here, a few milliwatts. According to Vincent Peiris, section head of Bluetooth is the correct communications choice. CSEM’s analog and IC design section and the project’s coor- It should be noted that the Bluetooth Smart communica- dinator, the group is developing devices that are 50 times tions protocol supports BLE but not the classic Bluetooth. The smaller and require 20 times less power than existing con- Bluetooth Smart Ready protocol is available to communicate sumer products. with both BLE and classic Bluetooth, and it is already in use in many smart phones and tablets. MORE MEDICAL TECHNOLOGY “Our research has shown and all the information is indi- cating that BLE is the predominant one in the market now. For more, go to http://electronicdesign.com/markets/medical and see: Using BLE components adds a new level of functionality that • Choose The Right Resistors For Medical Applications enhances their power-saving capability,” says Chuck Parker, • Build A Wrist Heart-Rate Monitor executive director of the Continua Alliance, a non-profit, • Using An Ultra-Low-Power MCU open industry organization of more than 200 healthcare and 36 ELECTRONIC DESIGN ideas for design Circuit Generates High-Frequency Sine/Cosine Waves From Square-Wave Input JOHN R. AMBROSE | MIXED SIGNAL INTEGRATION CORP. [email protected] ALTHOUGH QUITE A FEW direct digital synthesis (DDS) ICs can dual divide-by-2 and divide-by-5 device. By combining the generate high-frequency sine waves, their complexity excludes 74HC390 with the 74HC74A dual flip-flop, the 50-MHz clock them from many designs. However, designers can use simple can be divided to 500 kHz. high-frequency CMOS logic and two switched-capacitor filters The 74HC74A provides a Q and /Q output at half the fre- to create a sine/cosine generator. With newer filters, a 1-MHz quency of the divide-by-25 output of the 74HC390A. Dividing output at 1.7 V p-p is possible. the 74HC74A output by 2 with the divide-by-2 blocks in the The example circuit uses an MSHFS6 5-V, low-power 12.5:1 74HC390A creates two square waves –90° apart. Figure 2 shows switched-capacitor filter with selectable Butterworth, Bes- a 100-MHz square-wave input, a 12.5-MHz output for the filter sel, or elliptic filters in the lowpass mode and full-, 1/3-, or clock, and 1-MHz sine and –cosine square-wave output before 1/6-octave filters in the bandpass mode. Since the lowpass the dividers. Resistor-divider circuits reduce the amplitude from mode would cause a 3-dB loss of the signal output, the circuit rail to rail to prevent generation of distortion in the filters. The uses the 1/6-octave bandpass filter, which is selected by tying use of ac coupling at the MSHFS6 filter inputs ensures smoothed pins 1 and 3 high on the MSHFS6 (Fig. 1). square waves centered around the filters’ analog ground. Two separate divider circuits are used. The 74HC393A Figure 3 shows the output of the two filters with an input divides the 50-MHz clock to 12.5 MHz. The 74HC390A is a clock of nearly 50 MHz. If the inverted cosine is not accept- +5 V +5 V U3 C7 0.1 μF 1 16 U4 14 Clk AA VDDD 2 Clk AB 15 VCC Rst A 2 5 3 14 D Q QAA Rst B R1 3 74HC74A 6 4 13 10k Clk /Q Clk BA QAB +5 V 1 2 5 12 R2 /Clr QBA Clk BB 4 1 Cosine out 10k /Pre 6 11 Gnd J1 QCA QBB 2 7 10 7 QDA QCB 1 C1 R11 8 9 J3 0.1 μF 10k VSSD QDB +5 V +5 V R12 74HC390A U2 R3 10k 1 8 1M FSEL In R4 2 7 100k Out AGnd 3 6 +5 V C4 V C2 R5 +5 V C8 0.1 μF Type SS 0.1 μF +5 V 0.1 μF 100k Sine out U1 4 5 +5 V R9 1M Clk VDD 1 8 R8 14 2 FSEL In 100k 2 6 MSHFS6 C3 1 Out AGnd V 0.1 μF 3 7 1 CC 3 Type J2 V SS C5 R10 /Clk QA 4 5 Clk V 0.1 μF 100k 2 4 DD Clr QB R6 MSHFS6 5 1 k +5 V QC 6 QD Gnd C6 R7 0.1 μF 7 74HC393A 1k 1. Instead of a DDS IC, the sine/cosine generator uses simple CMOS logic and two switched-capacitor filters to provide a 1-MHz output at 3.0 V dc. GO TO ELECTRONICDESIGN.COM 37 LEADERS2013 LEADERS PROFILE IMAGINEERING WEB | www.PCBnet.com EMAIL | [email protected] TEL | (847) 806-0003 EQUIPPED WITH THE LATEST TECHNOLOGY AND DRIVEN BY CUSTOMER SATISFACTION ounded in 1985 Imagineering has been devoted to being a value added PCB and PCB Assembly supplier by providing Frigid, flex and Metal Core on prototypes to full turnkey production projects. Imagineering has ample production experience, precise automation of mass production, and calibrated examination equipment, all of which aid in the company’s ability to deliver advanced technology products with high quality, low cost, and rapid delivery, that customers have come to depend on over the last 28 years. Imagineering delivers zero defect product standard. Every detail of the production process goes through strict quality control in compliance with stringent quality requirements of Imagineering is also devoted to maintaining UL and ISO. Imagineering’s skilled CAD/CAM operators and rigorous environmental protection standards to procurement specialists are highly trained to handle a wide achieve the goal of reducing pollution to a minimum. range of complex specifications. Our state of the art Jet Printer The company has committed to be in compliance has the ability to apply solder paste directly on the SMT pads with the requirements of the ROHS directive and with high degree of precision. It is now possible to prep PCB has modified its processes to meet our international Assembly jobs in minutes instead of days. With this advanced customers’ standards. technology we can achieve the perfect results for QFNs, pin-in- Imagineering has the capability of customizing the paste, package-on-package and other new applications – such as process for both, PCB fabrication and assembly, in jetting into a board cavity. order to meet our customers’ needs. Our customers can count on us to deliver both quick turn prototypes and production on the simplest to the most complex PCBs, from through hole to fine pitch assembly. Over the last 28 years, our aggressive turnaround and pricing has become industry standards. Imagineering will continue to strengthen its existing advantage in this competitive market by locating and developing advanced techniques, increasing the precise automation of mass production, exploring distinctive markets for highly value added PCBs, introducing global logistics management, and opening up both domestic and overseas markets. 38 ELECTRONIC DESIGN LEADERS2013 LEADERS PROFILE VOLTAGE MULTIPLIERS INC. WEB | www.VoltageMultipliers.com 8711 W. Roosevelt Ave. EMAIL | [email protected] Visalia, CA 93291 USA TEL | 559.651.1402 FAX | 559.651.1704 VOLTAGE MULTIPLIERS INC. – YOUR HIGH VOLTAGE EXPERTS! ook no further for high voltage components. Voltage Multipliers Inc. manufactures a full line of high voltage diodes and assemblies ranging from L discrete components to complex power supplies. • Diodes – 2kV to 20kV in surface • Single Phase Bridges – 5kV to 20kV mount, axial-leaded, and formed lead Vrwm per leg 2A bridges available with terminations optimized to get the heat out. a 70ns reverse recovery time rating. Pin Package styles include glass and epoxy. terminals or insert terminals complete the package. • Rectifiers – 2kV to 40kV and 500mA to 2.2A in 100ns to 3000ns reverse • Voltage Multipliers – high voltage in recovery times. a small package. Connect in series to achieve up to 14kV output. • Optocouplers – 2.5kV to 25kV optocouplers featuring different gains • Power Supplies – 125kV 250W for and long-term gain stability in several portable X-ray applications, CRT package styles. displays, and HeNe lasers. VMI IS YOUR SOLUTION FOR HIGH VOLTAGE PROBLEMS OUR TRACK RECORD speaks for itself. We work hard to find solutions VMI was established in 1980, over 33 years ago. to our customer’s tough, high voltage problems. We pride ourselves on Originally, we manufactured high voltage multipliers exemplary customer service and our ability to work with our customers, for applications like cockpit CRT displays and analog every step of the way. From project conception through high-volume oscilloscopes. Times have changed, and so have we. production, our engineers are in the arena with you. You won’t find better When a worldwide shortage of high voltage diodes engineering or customer service. occurred - parts that were critical to our products - we Electrical specifications aside, custom power supply options include responded by developing in-house capabilities. We’ve multiple or single outputs, custom housings, precision outputs, signal input continued to grow since then. Our area of high voltage and output monitoring, and more. Your imagination is the limit! expertise now includes high voltage assembly and power supply designs. CalRamic LLC, VMI’s sister company, manufactures high voltage ceramic capacitors. We know high voltage. VMI is ISO9001:2008 certified. We’ve earned DSCC’s award of Lab Suitability, and we’re a member IPC. 40 ELECTRONIC DESIGN Ideas for Design 2. The 1-MHz sine and –cosine outputs of the generator (channels 3 3. Channels 1 and 2 show the outputs of the two switched-filter and 4) result from the 100-MHz square-wave input (channel 1). capacitors with an input clock of nearly 50 MHz. able, an op amp at the cosine filter output or the inverter at pin gration Corp. and other companies have found that spec to be 13 of the 74HC390A can correct it. very conservative. The Lissajous curve for the two outputs (Fig. 4) indicates In this application, a 100-MHz input clock achieved the that the phase circle matches the 89.1° reading in Figure 3. desired divide-by-4 and divide-by-100 needed to operate Using a Krohn-Hite 6900B distortion analyzer and a 1-MHz the newer MSVHFS6 switched-capacitor filter at 3.3 V. The Krohn Hite lowpass filter (to remove the clock), the circuit’s only change needed was to reduce VDD to 3.3 V and replace total harmonic distortion on the sine output was only 0.1%. the 5-V MSHFS6 filters with the 3.3-V MSVHFS6. The Although the 74HC390A and input clock was increased to 100 MHz. 74HC393A have a guaranteed Figures 5 and 6 show the filter outputs’ maximum operating frequency of phase relationship in time and as a Lis- 50 MHz at 6 V, Mixed Signal Inte- sajous curve. 5. The original circuit used the MSHFS6 switched capacitor, but it JOHN R. AMRBOSE is the vice president also works with the newer MSVHFS6 of applications and system engineering at version, which runs on 3.3 V rather Mixed Signal Integration Corp. than 5.0 V. This screen shows the two outputs’ phase relationship in time. 4. The Lissajous curve for the circuit’s two outputs shows that the 6. The Lissajous curve for the circuit using the MSVHFS6 3.3-V filters phase circle matches the 89.1° found in Figure 3. shows the outputs’ phase relationship. 42 ELECTRONIC DESIGN LEADERS Q&A IN ELECTRONICS LOUIS E. FRENZEL | COMMUNICATIONS EDITOR [email protected] Freescale’s Ritu Favre Discusses Today’s RF Technologies adio-frequency (RF) technology isn’t just a niche in elec- aerospace markets has also been very tronics. It’s the basis for the massive use of wireless we see well received, and we are getting signifi- R cant pull there. Our overall industrial today. Freescale Semiconductor is a leader in RF power offerings also continue to gain traction, transistors, amplifiers, and other RF circuits. Ritu Favre, VP of Fre- and we are performing very nicely in escale’s RF division, discusses the RF business, products, and markets. these areas. ED: Tell us something about ED: What key factors are driving your ED: Are you developing any products Freescale’s RF Division. What is the RF business right now? for the automotive/telematics/con- scope of the products? RF: Cellular networks are continuing to nected car market? RF: For over 20 years, Freescale has transform from voice-centric to data- RF: Freescale is a major supplier of been the leader in defining “what’s next” centric in nature, and the accompany- semiconductors to the automotive in RF. In the 1990s when bipolar was ing explosion in mobile data usage has industry. Our sister business groups the industry standard, Freescale was led to expansion and upgrades of cel- within Freescale are developing plat- the first to introduce laterally diffused lular networks. In turn, this has created forms and solutions for inter-vehicle metal-oxide semiconductors (LDMOS), a healthy demand for our products and communications and for advanced and that enabled multi-generational led to growth in our businesses. driver assistance including radar-based improvement in power amplifier (PA) Our announcement earlier this year communications. performance. In the 2000s when discrete that we are entering the RF military & Freescale has a broad portfolio of ceramics were the industry standard, automotive microcontrollers, inte- Freescale was the first to launch radio- grated circuits, and sensor solutions. frequency integrated circuits (RFICs) Specifically in the RF business, there are and plastic packaging, thereby enabling sections of our group that participate in compact, easy-to-design PAs. the connected car market. Today, with a significant market An example of this would be the share lead in RF power amplifiers, development of high-definition FM Freescale is successfully leveraging (HDFM) and radio data system- our technology position to grow reve- traffic message channel (RDS-TMC), nue outside of cellular infrastructure in where traditional radio stations can areas such as millimeter-wave mono- now broadcast traffic information lithic integrated circuits (MMICs), RF through FM transmitters. We lead industrial, RF military & aerospace, The newest Freescale Airfast LDMOS tran- the pack in FM RF power transistors. and land mobile markets. sistors are designed specifically for TD-LTE Additionally, as part of our emerging basestations at the 2.3/2.6-GHz frequency market product team, we are working ED: What products make up the great- bands. These transistors span a broad range on other RF automotive applications est percentage of the business? of power points, from 50 W to 200 W. The such as plasma ignition. RF: Today our largest revenue stream is AFT26HW050S/GS targets metrocell base- from RF cellular markets (basestation station applications in the 2496- to 2690-MHz ED: Is the LDMOS power transistor PAs). band. In an asymmetrical Doherty configura- business still solid given the big inter- tion, it delivers 47.4 dBm of peak power. est in gallium nitride (GaN)? GO TO ELECTRONICDESIGN.COM 43 LEADERS2013 LEADERS PROFILE ADVANCED ASSEMBLY - THE INDUSTRY STANDARD FOR SUCCESSFULLY MEETING AN ENGINEER’S NEED FOR LOW-QUANTITY PCB ASSEMBLY LOW-VOLUME ASSEMBLY WITH A QUICK-TURN APPROACH ADVANCED ASSEMBLY is the only printed circuit board assembly company in the industry that provides services specifically for design engineers needing fast, low-volume PCB assembly. Before Advanced Assembly, engineers had a difficult time finding a reliable partner willing to assemble small quantities, forcing them to assemble boards themselves or wait months for delivery. Using a proprietary technology to quickly assemble just a few boards at a time, Advanced Assembly provides the highest quality boards with an average turn time of less than 5 days, no matter how complicated. Catching errors during the prototype phase is critical to the success of any project, which is why Advanced Assembly runs every project through its unique assembly verification software. The free design-for-assembly check, along with review from the company’s experienced engineering team, catches 90% of design errors before beginning the assembly process. This saves customers time and money by avoiding holds, delays and rework. THE ADVANCED ASSEMBLY ADVANTAGE IN PARALLEL with the design check, Advanced Assembly can quality technology. From procurement specialists to buy parts, order parts and boards from leading industry suppliers such as engineers to program jobs, technical sales people to quickly Digit-Key, Newark and Arrow. The turn-key service eliminates answer questions, and customer service to oversee the process, the need to coordinate multiple vendors and streamlines the customers get help when they need it. process. Once it is ready to go, the project is assembled in a state-of-the-art, ISO-approved manufacturing facility. Advanced Assembly’s outstanding success proves it is fulfilling a previously unmet need. Over the past ten years, Advanced But even more importantly, Advanced Assembly has Assembly has become the undisputed leader in PCB assembly personalized customer service on top of the fastest, highest for prototypes, NPIs, and other low-volume orders. And, when a design passes the prototype phase, Advanced Assembly can also now handle the production assembly. Recognized by Inc. Magazine as one of the fastest growing US companies, Advanced Assembly also has been honored for its outstanding contributions to the Colorado economy. For these reasons, it’s not surprising thousands of engineers and many Fortune 500 companies trust Advanced Assembly with their PCB assembly projects. 44 ELECTRONIC DESIGN LEADERS2013 LEADERS PROFILE PEARSON ELECTRONICS WEB |pearsonelectronics.com TEL |+1.650.494.6444 A TRUE LEADER IN THE ELECTRONICS INDUSTRY PEARSON ELECTRONICS IS the original and leading manufacturer for precision current-monitoring transformers used for accurate AC current measurements. The company was founded in 1955 by Dr. Paul Pearson, inventor and patent holder, of the precision wide-band current transformer. The Pearson design plus careful workmanship and quality control produce current monitors with excellent frequency response and amplitude accuracy. Originally developed for measuring pulse-currents, Pearson Current Monitors™ are now also widely used to measure more complicated transients and periodic signals from a few Hertz to well into the megahertz region. Pearson precision wide-band current transformers can measure pulse, harmonic, transient, sine-wave, EMI and other complex current wave shapes. The current range is from micro-amps to mega-amps and we manufacture both toroid and clamp-on current transformers. We stock a large variety of models for immediate delivery and design and manufacture for both OEM and custom requirements. Pearson Electronics also specializes in the design of High Voltage Pulse Transformers that are used with high power microwave tubes and Capacitive Voltage Dividers. APPLICATIONS WHETHER YOU ARE interested in observing and measuring transients in switching gear and the observation of harmonics submilliamp currents in a charged particle beam or thousands and phase relationships on power lines. The testing of circuit of amps resulting from a fault in a major power feeder, you breakers for power protection is also a typical application. will find a Pearson Current Monitor to suit your needs. The Pearson Electronics enjoys close relationships with most of the Power Industry uses Pearson Current Transformers to measure power analyzer manufactures and provides current transformers for use with their equipment. Applications in the aerospace industry include measuring pulse currents in modulators for radar equipment, 400 Hz measurements for FAA commercial aviation approval, RF currents in radio transmitters, measuring surge currents and transients for lightning strike analysis, and the appropriate EMI tests to meet EMC standards. The medical equipment industry, particle accelerator community, plasma research, and anyone that needs to have a precise and accurate measurement of AC current could use a Pearson Current Monitor. The Pearson Electronics Quality System conforms to MIL- I-45208A and AS9003. We offer calibration services traceable to NIST for our current transformer that conforms to ANSI/ NCSL Z540-, MIL-STD-45662A and ISO 17025. 46 ELECTRONIC DESIGN :,'(%$1' &855(17352%(6 3UHFLVLRQ:LGH%DQG&XUUHQW7UDQVIRUPHUVIRU DFFXUDWHDQGSUHFLVHPHDVXUHPHQWVRI$&FXUUHQWV • 3XOVHKDUPRQLFWUDQVLHQWVLQHZDYH(0, VXUJHDQGRWKHUFRPSOH[FXUUHQWZDYHVKDSHV • G%EDQGZLGWK+]0+] • DFFXUDF\DFURVVWKHPLGEDQG • )UHTXHQFLHVXSWR0+] • )DLWKIXORXWSXWRIWKHZDYHIRUP • 0LQLPXPFXUUHQWRI$ • 3XOVHFXUUHQWVXSWR0$ 6LQFH 3HDUVRQ(OHFWURQLFVKDVPDQXIDFWXUHG DQGVWRFNHGDZLGHVHOHFWLRQRIFXUUHQWSUREHVIRU 2(0DQG&XVWRP$SSOLFDWLRQVDYDLOEOHLQ &ODPSRQDQG7RURLGSDFNDJHV SHDUVRQHOHFWURQLFVFRP 3+21( +2856 $0a303$&,),&7,0( Q&A RF: Freescale’s objective to remain a which is a solution that can dramati- the figure). However, for the “next big market leader can only be fulfilled if we cally reduce production variation in thing” we are making very significant are able to provide the right solutions Doherty amplifiers. investments in our industrial and at the right price across the market MMIC businesses, and we see a bright segments we serve. To enable this, our ED: Does Freescale have RF circuits for future for these application areas. technology investments span LDMOS, the cellular market? GaN, gallium arsenide (GaAs), and RF: Yes, Freescale invests heavily in ED: What challenges have you over- other technologies. Today, the cellular RF power circuits to help reduce our come to get to where you are today? infrastructure market is by and large customers’ cycle times and increase per- RF: To reach my current position, I had still an LDMOS-dominant market. formance and time-to-market. We have to overcome many barriers to being So, yes, our LDMOS outlook is quite expanded our single-stage reference credible as a leader. I started in electri- strong as we look forward. There are circuit design offerings to include full cal engineering and was one of five niche applications where wide band PA lineups, which allow customers to women in my bachelor’s classes. By my gap provides differentiation, and we are finalize their designs much quicker. master’s, I was the only woman. investing in these areas. For example, at Upon starting at Freescale, I started S band there are performance-to-cost ED: Do you have RF design tools or in manufacturing. I learned leader- ratios that must be considered, and at C reference designs that help engineers ship skills working in the wafer fab and and especially X band, the performance design? final manufacturing facilities. In order benefits of GaN make it attractive. RF: Absolutely. A very large portion of to progress in my career, I needed to our investments is in areas that help our move to a business role. I moved into ED: Are you doing anything with GaN? customers’ designers reduce the com- business management and worked with RF: We are developing GaN products plexity and cycle time of their designs. a number of very intelligent RF engi- for markets that can derive the most For example, our FET2 and MET models neers. Over time, I began to learn the benefit from the advantages that GaN for RF high-power transistors and RFICs technology and the challenges. Work- has to offer, such as higher Ft, broad- are nonlinear models that simulate ing closely with the team to gain cred- band, and power density. This year we electrical phenomena and account for ibility helped me to achieve the goals announced our initial offerings for cel- dynamic self-heating. They were specifi- that I was looking to attain. lular infrastructure and broadband land cally developed to model high-power mobile applications. In addition to that, RF transistors and RF ICs. Freescale’s ED: What new skills do you see influ- we are investing in GaN development RF models are generally recognized as encing the future of RF that new grad- at C and X band, where GaN provides market leading and enable our custom- uates should be cultivating? significant performance benefits. ers’ circuit designers to predict prototype RF: Communication skills are vital, performance more accurately. being able to convey ideas clearly so ED: What is the status of the Doherty As mentioned, we also invest heavily others can understand them. Under- amplifier business? in reference designs. As one example stand the person/audience you are RF: Doherty remains the workhorse of of this, we have launched a “130 ways talking to and ensure that you think high-power RF PAs. Although alter- to get smarter” campaign based on our through the best way to get your point native architectures are always being 130 reference designs in the RF indus- across. Be an engineer for many years developed, I do not expect Doherty’s trial space. We will continue to produce before making a shift into management. status as a critical technology to change more and more of them, as they are a Become an expert in a particular field in the near future. key enabler for us and ease our custom- of engineering before branching out. ers’ design process significantly. Work hard, and let your career develop ED: What is the future for GaAs RF naturally. circuits? ED: What do you see as the “next big RF: The future for GaAs is very bright, thing” in RF? RITU FAVRE is senior vice president and especially in lower-power applications. RF: We understand that true differen- RF general manager at Freescale. She We expect GaAs to receive a further tiation is needed to maintain and grow joined Freescale in 1988 and has served boost through femtocell markets, both cellular market share, and we will con- as the RF general manager since October consumer and enterprise varieties. tinue to focus there. As an example, we 2010. She holds a bachelor’s degree in elec- Additionally, using this technology believe that Freescale’s latest Airfast RF trical engineering and a master’s degree platform we have developed applica- products are best-in-class at multiple in electrical engineering, semiconductor tion-specific products such as ADAM, frequency bands and power levels (see physics, from Arizona State University. 48 ELECTRONIC DESIGN Consumer Electronics Continued from Page 19 devices already mentioned, but that is often unnecessary for analyzing gestures and relative motion where visual approach also uses a set of infrared emitters and a sensor pack- biofeedback is sufficient. aged in a small dongle that sits in front of a laptop so it can see Systems like the Kinect that use infrared imaging do not work a user’s fingers and hands when gestures are performed in front well in many environments, such as in daylight where sunlight of the device. can overpower and blind the sensors. PointGrab’s system will be LeapMotion’s technology is built into HP’s Envy notebook limited by the camera as well. (see the opening figure). It is integrated with Microsoft Win- Dual-camera 3D imaging systems are also available, but they dows, enabling the user to control the interface without touch- have yet to scale to consumer level products. They also have ing the screen. The advantages of integration are significant high computational requirements. Camera-only solutions can since placement is fixed with respect to the screen and the sen- suffer from aliasing issues in the analysis software as well. sor is hidden within the case. 3D is not a requirement for a useful image recognition tool. BIOMETRIC RECOGNITION Sufficient resolution and processing power are all that are Voice recognition and control has been around for decades needed. Processing power can be significant so an Arduino with significant improvement. It only requires a microphone platform might be impractical, but heftier compute platforms and a speaker for feedback, so it is even lower in cost than imag- like a Tegra 3 or 4 do have the horsepower for this type of ing systems. analysis. For example, the Vital Sign Camera application from Wading through automated voice call centers is no fun, but Philips can detect heart and breathing rates using the video you might find the latest interactive voice response (IVR) sys- stream from a conventional camera on most mobile devices. tems to be rather fluent and understanding. IVR is a combina- PointGrab provides Microsoft Windows-based 3D ges- tion of steady voice recognition improvements and the ability to ture recognition using the typical built-in camera found on apply more processing power to the problem. Improved audio most notebooks and tablets. Pinch and zoom hand gestures processing also removes background noise and improves the can be used to interact with applications without a touch- starting point for voice recognition software. screen interface. Its 3D precision is not as high as the 3D Voice recognition has become more common in addition to IVR systems. It can be found on most automotive navigation 5. Users of Virtuix’s Omni systems, and Apple’s Siri brought the world’s attention to voice walk on a low-friction recognition on smart phones. surface while wearing The challenge with voice recognition compared to image 3D virtual reality goggles processing is that the expectations for voice recognition are like the Oculus Rift. much higher. Most people expect a system to understand the meaning of a statement they issue and have the computer act accordingly, whereas the current state of affairs with image rec- ognition is more basic with pinch and zoom gestures activating a limited set of actions. Fingerprint recognition is used for identification purposes, but its cost and reliability have improved greatly. Various forms of the technology have been available for years, though it has become more common. Apple’s iPhone 5 is notable because its single button doubles as a fingerprint sensor. The first swipe likely will identify the user. An entire article could be written about the issues sur- rounding the iPhone 5’s sensor and security. Fingerprint sensors are standard fare on other devices like laptops and desktop keyboards. They can even be found on secure external hard drives like those from Apricorn. Biometric identification is not necessarily restricted to fin- gerprints. Face recognition using cameras is already available. Applications like Visidon AppLock use the forward-looking camera on smart phones. In the future, biometric sensor fusion 6. Creative’s Senz3D utilizes SoftKinetic’s time-of-flight 3D imaging with other methodologies such as voice recognition may pro- technology. vide faster, more secure recognition. GO TO ELECTRONICDESIGN.COM 49 LEADERS2013 LEADERS PROFILE ADVANCED POWER ELECTRONICS CORPORATION stablished in Taiwan in 1998, Advanced Power Electronics Corporation became a leading supplier of MOS power discrete Eand IC products over the last fifteen years by building a substantial base of high-volume users, including all the major EMS companies who build products for customers around the world. With a focus on multi- sourced manufacturing and logistics for reliable continuity of supply, we have been ranked as one of the world’s top fifteen power MOSFET suppliers by iSuppli. Offering a broad range of power MOSFETs from 20V to 900V, in popular industry standard package outlines, we continue to introduce new products every month to address the evolving requirements of our customers. was established in San Jose, California, Using our expertise in producing MOSFETS with very low to support the Americas and EMEA on-resistance, we have been able to excel in the area of ULDOs, which are markets, including coordination of the linear regulators with extremely low dropout voltage. With the continuing global activities of all customers based in drive for power efficiency, electronic components operate from lower these regions. and lower voltage rails. By reducing the drop-out voltage, these ULDOs “Our US operation enables us to provide can maintain regulation with low input/output voltage differentials, and excellent service to local customers as well so linear regulators can remain in play as a cost effective and efficient as better co-ordinating the needs of our solution for many applications. multinational customers in the Americas and In addition to designing, manufacturing and selling our own Power Europe,” stated Ralph Waggitt, Advanced MOSFETs, IGBTs, and power management ICs, the company is a licensee Power Electronics Corporation’s US of International Rectifier Corporation (IR®) for some planar MOSFET, President. “The decision to put this team in IGBT and packaging technologies. place reflects the company’s commitment to make the necessary investments to support A FOCUS ON LOCAL SUPPORT local design and manufacturing needs.” In 2007, recognizing the need to connect more closely with With a network of sales representatives customers outside Asia, Advanced Power Electronics Corp. USA and stocking distributors, including high- service level distributors such as element14, we are able to quickly put our parts in the hands of local design engineers and follow the business all the way through to reliably support the production wherever it may be – global support. IR is a registered trademark of International Rectifier Corporation. 50 ELECTRONIC DESIGN LEADERS2013 LEADERS PROFILE KEYSTONE WEB | keyelco.com ELECTRONICS CORP. EMAIL | [email protected] TEL | 800.221.5510 FAX | 718.956.9040 QUALITY INTERCONNECT COMPONENTS AND ELECTRONIC HARDWARE eading edge technology and precision manufacturing have defined Keystone’s performance as a world-class manufacturer Lof precision electronic interconnect components & hardware since 1950. We manufacture precision stampings, in metallic or non-metallic materials for all industries and are specialists in progressive dies, four slides, wire forming, in-die tapping and high-speed blanking. Screw machine products are made with automatic machinery and support equipment to produce competitively priced precision turnings from .020” to 1.00” diameters in metallic or non-metallic materials. Our cost effective assembly procedures include: eyeleting, riveting, stak- ing, swaging, inserting, crimping, soldering or screw insertion, with automatic & semi-automatic operations assembling metallic or non- metallic components into finished products. Our full line catalog, M60.2, features products that are engineered specifically for use by OEM Designers and Engineers who create and develop state-of-the-art electronic products, instruments and systems. PRODUCT OVERVIEW: Battery Clips, Contacts and Keystone’s design and engineering experts are fully integrated with our Holders; Fuse clips, Contacts and Holders; PCB Terminals in-house precision tool and die shop. Utilizing the latest CAD/CAM and Test Points; Spacers & Standoffs; Panel Hardware; and 3D modeling software, Keystone’s Custom Manufacturing Division Pins, Plugs, Jacks & Sockets; PC Board Hardware; Multi- provides close tolerance Stamping, Machining, and Assembly, services Purpose Hardware; Terminal Boards & Strips; LED Lens as part of their quality control and responsive customer service. Caps & Holders. Keystone’s Quality System is ISO 9001:2008 certified by DNV While our catalog products meet most standard Certification, Inc. under the RAB and RvA accreditations. Our quality requirements, modifications as well as custom fabrications assurance program is in accordance with these requirements and can be manufactured to meet customer specific needs. applies to all standard and custom interconnect components and hardware. Keystone is also RoHS and REACH compliant. Keystone has USA headquarters with offices in Canada, Europe, Australia and Asia. For more details, contact Keystone Sales at 800-221-5510, Fax 718- 956-9040, Email: [email protected] or visit www.keyelco.com on line. 52 ELECTRONIC DESIGN CATALOG M60.2 ® THiNK Keystone Catalog M60.2. The Newly Released 2nd Edition of Catalog M60. Discover all of our New Products. SMT & THM Interconnect Components and Electronic Hardware. Designers and Manufacturers ® ELECTRONICS CORP. Tel: (718) 956-8900 s (800) 221-5510 s e-mail: [email protected] s Web: www.keyelco.com There’s a keystone in every great invention … Follow, THiNK & Learn at: LabBench LEADERS BILL WONG | EMBEDDED/SYSTEMS/SOFTWARE EDITOR IN ELECTRONICS [email protected] When Will Self-Driving Cars Be Ready For You? oyota exhibited a Lexus LS600 at the 2013 Inter- No external sensors were installed on the Audi itself, so it national CES in Las Vegas,along with other car had fewer accoutrements than the Toyota research vehicle. vendors that were highlighting the latest electronics Instead, it relied on a few blue sensors from a company called Tand automotive technology you can buy (see the figure). This Sick in the parking lot and received information from the Lexus was different, though. The driver is optional, and it’s a network. The driverless support was limited to the parking little more tricked out than your local dealer’s LS600. and pickup area, which was all that was necessary for the valet Toyota’s autonomous car looks a bit like many other driverless application, along with some intelligence. research vehicles, with sensors decorating its exterior. Some of Of course, the real barrier to driverless cars will be liability them like the laser tracking system are a bit expensive but provide insurance. I have no doubt we’ll see driverless vehicles that very precise results. The car also has forward and side radars and meet or exceed the performance of human drivers, but insur- high-definition color cameras. On-board computing power is ance still is a major hurdle. substantial since it handles planning as well as sensor integration. Everyday appliances are built with safety in mind. Of course, the standards that those devices must meet already DRIVERLESS TECHNOLOGY exist. Mapping human standards for driving to a driverless car Google’s driverless car has made it into the news, though will take time. Unfortunately, it isn’t as simple as making it’s been a few years since the Defense Advanced Research driverless cars meet human standards because these cars can’t Projects Agency’s Grand Challenges (see “Autonomous be held liable like people. Vehicles Tackle The Urban Jungle” at www.electronicdesign. com). These research vehicles now can get from one point to another without major collisions, but they aren’t ready to mix ADVERTISER’S INDEX it up with their human-controlled counterparts yet. Still, the latest driverless cars can do more than avoid build- ADLINK TECHNOLOGY ...... 34-35 ings and other mobile vehicles. Pedestrian avoidance is good, ADVANCED ASSEMBLY ...... 44-45 and it’s useful even in driver-controlled cars, providing an ex- ADVANCED CIRCUITS ...... 28-29 tra set of “eyes.” But we won’t see it in the mass market unless ADVANCED POWER ELECTRONICS CORP...... 50-51 the technology can be made reliable and inexpensive. ALLIED ELECTRONICS ...... 14-15 Google got the first license for a driverless car in Nevada ALPHA & OMEGA SEMICONDUCTOR LTD...... 22-23 for driving research vehicles on public thoroughfares. Audi, AVNET ...... 16-17 which got the second license, demonstrated its driverless car COMPAERO INC...... 8-9 at the Mandarin Oriental hotel in Las Vegas during CES. It DIGIKEY CORP...... FC was essentially a robotic valet. Press the Pickup button on the DIGIKEY CORP...... IFC-1 Audi smart-phone app, and the car shows up at the curb. EMCO HIGH VOLTAGE CORP...... 26-27 FCI NORTH AMERICA ...... 10-11 FRONT PANEL EXPRESS ...... 20-21 IMAGINEERING ...... 38-39 Toyota showed off KEYSTONE ELECTRONICS CORP...... 52-53 its self-driving Lexus LINEAR INTEGRATED SYSTEMS INC...... 32-33 LS600 research vehicle PEARSON ELECTRONICS ...... 46-47 at the C2013 Inter- TEKTRONIX ...... 3&5 national CES in Las VOLTAGE MULTIPLIERS INC...... 40-41 Vegas. 54 ELECTRONIC DESIGN