South Africa
Altech finally reaped the fruit of its labour when electronic communications network service (I-ECNS) and electronic communications service (I-ECS) licences were officially issued to Altech Autopage Cellular by the Independent Communications Authority of South Africa (ICASA). This follows a regulatory challenge initiated almost a year prior. Communications minister Ivy Matsepe-Casaburri applied for leave to appeal this decision, but on 31 October 2008 the High Court refused this application with costs. The minister then lodged an urgent court interdict to halt issuance of the licence by ICASA, which was also overturned by the High Court, at which time the dispute was concluded. The news is widely considered to be a victory not only for Altech, but for the South African telecommunications industry as a whole.
Overseas
Business
Intel has disclosed plans to close two existing assembly test facilities in Malaysia and one in Philippines, and will halt production at an older 200 mm wafer fabrication facility in Oregon, USA, as well as ending wafer production operations at its D2 facility in California. The actions at the four sites, when combined with associated support functions, are expected to affect between 5000 and 6000 employees worldwide. However, not all employees will leave Intel; some may be offered positions at other facilities. The actions will take place between now and the end of 2009.
Cree announced revenue of $147,6 million for its second quarter of fiscal 2009, ended 28 December 2008. This represents a 24% increase compared to revenue of $119,0 million reported for the second fiscal quarter last year and a 5% increase compared to the fiscal first quarter of 2009. Revenue included $5,6 million in patent licensing fees which were not factored into previously announced targets. GAAP net income for the second quarter was $10,7 million, or $0,12 per diluted share, compared to net income of $6,6 million, or $0,08 per diluted share, for the second quarter of fiscal 2008.
Royal Philips Electronics is reducing the book value of its Lumileds subsidiary due to short-term market demand and uncertain outlook. In a move that was initially indicated during the company’s investor and analyst day late last year, the company has announced that it will impair the book value of its Lumileds business by 232 million Euros. The adjustments will be reflected in the announcement of the company’s fourth quarter 2008 results.
Freescale Semiconductor announced it has received approximately $184 million by making a withdrawal under its $750 million revolving credit facility, which expires in 2012. The company had cash and cash equivalents totalling approximately $1,4 billion at the fourth quarter ended 31 December 2008. The company’s revolving credit facility includes a $60 million commitment from Lehman Commercial Paper – a subsidiary of Lehman Brothers investment bank – which filed for bankruptcy late last year. Freescale’s borrowing request was not honoured by Lehman.
Qimonda AG and Qimonda Dresden OHG have filed an application with the local court in Munich to open insolvency proceedings as part of their goal to reorganise the companies as part of an ongoing restructuring programme. The insolvency petition is the result of the massive drop in prices in the DRAM industry and dramatically decreased access to financing on the capital markets, both of which have led to the deterioration of the financial position of Qimonda in recent months.
Texas Instruments announced fourth quarter revenue of $2,49 billion, net income of $107 million and earnings per share (EPS) of $0,08. These financial results include restructuring charges of $0,13 per share, without which EPS would have been $0,21, considerably better than the company’s mid-quarter expectations. However, the company is making reductions in employment because demand has continued to weaken with the slowing economy. Employment will be reduced 12% through 1800 layoffs and 1600 voluntary retirements and departures. Charges for these employment reductions will be about $300 million. Annualised savings from these reductions, plus those announced in October for the restructuring of the company’s wireless business, will be about $700 million after all reductions are complete in the third quarter of 2009.
For its fiscal 2009 third quarter ended 27 December 2008, RF Micro Devices reported that quarterly revenue decreased approximately 25,6% sequentially to $202 million, reflecting a rapidly declining demand environment. GAAP gross margin decreased sequentially from 28,3% to 19,0%, primarily as a result of the sequential decrease in revenue, low factory utilisation rates and inventory-related charges of approximately $25 million. Operating loss was approximately $754 million, reflecting asset impairment and inventory-related charges. Net loss was approximately $813,3 million on a GAAP basis.
Companies
AWR, a leader in high-frequency electronic design automation (EDA), has acquired Simulation Technology and Applied Research (STAAR), a developer of 3D parallelised FEM tools for EM simulation of components and subsystems operating at RF and microwave frequencies. Financial details were not disclosed.
Qualcomm has acquired certain graphics and multimedia technology assets, intellectual property and resources that were formerly the basis of AMD’s handheld business. The two companies signed and closed a binding agreement on 19 January 2009, having already received required regulatory approvals. Cash consideration from Qualcomm to AMD, as part of the transaction, is $65 million, subject to adjustments for employee-related expenses and a holdback for certain customary indemnification obligations.
Dongfeng Motor Corporation (DMC) and Freescale Semiconductor plan to establish a joint automotive electronics lab in China, aimed at jointly developing silicon, software and system-level solutions to be used in the next generation of DMC’s vehicles for the China and export markets. The two companies intend to cooperate in developing key automotive applications, including body electronics, powertrain control and hybrid electric vehicle (HEV) technologies. The technical cooperation involves a series of Freescale MCU platforms, including 32-bit Power Architecture MCUs,16-bit S12X and 8-bit S08 devices, as well as analog ICs. Founded in 1969, DMC currently manufactures more than 1,1 million vehicles per year.
Mentor Graphics has completed its acquisition of the C synthesis assets of Agility Design Solutions. The electronic system level (ESL) products associated with this acquisition are the Handel C-based algorithm synthesis flow found in the DK Design Suite, PixelStreams and the RC Series of FPGA development and prototyping boards. Key employees will join Mentor to ensure continued product support. Financial details have not been revealed.
TDK has issued a formal demand to the management board of Epcos, demanding that the company’s annual general meeting resolve to transfer the shares of minority shareholders to the majority shareholder, TDK Corporation, in exchange for an appropriate cash compensation. TDK directly and indirectly holds shares totalling over 95% of Epcos’ share capital. In addition, the management of both companies have resolved to prepare for the signing of a domination agreement between TDK Germany as the controlling party and Epcos as the controlled party.
Industry
According to iSuppli, China’s semiconductor market is expected to decline by 5,8% to $72 billion in 2009, down from $76,5 billion in 2008. The only previous decline iSuppli recorded was in 2008, when revenue decreased by a scant 0,1% – essentially a flat year for the market. Even during the disastrous year of 2001, when global semiconductor revenue plunged by 28,6%, China’s industry managed to surge by 24,4%. Nevertheless, iSuppli predicts growth will return in 2010, with a revenue rebound of 9%, followed by an 11% increase in 2011. To stimulate the economy, the Chinese government cut interest rates four times within two months starting in October 2008. Moreover, a stimulus package estimated at around $570 billion will be implemented during the next two years.
The LXI Consortium has elected Von Campbell of Agilent Technologies as its new president. In addition, the Compliance Technical Working Group, which is responsible for certifying instruments as LXI-compliant, was elevated to board committee status. Introduced in 2005, the LXI standard has been rapidly adopted by more than 50 companies, representing a who’s who of the test and measurement industry. To date, more than 650 products have been certified as being compliant with the LXI standard, and annual sales of LXI-equipped test and measurement equipment now exceed $200 million.
Technology
u-blox has been selected to supply XACT Technology with high-performance GPS receiver modules for its new line of portable personal tracking devices called XACT|TRAX. The innovative personal tracker provides users with up-to-the-minute information on the location of loved ones, pets, vehicles and other assets, wherever they may be.
University of California researchers have created nanoparticles that can self-assemble to make optical devices such as photonic crystals, and could be manufactured cheaply on a large scale. Using a technique that controls how densely the tiny silver particles assemble themselves, the nanoparticles could be used to make colour changing paints, ultrasensitive chemical sensors, components for optical computers, as well as metamaterials. By packing the silver nanoparticles loosely, the structures behave like photonic crystals in that they allow some wavelengths of light to propagate while stopping others. When they are tightly packed, the structures take on entirely new optical properties, behaving as so-called plasmonic crystals.
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