News

February 2012
IV - Q4 2011: at least the book:bill ratio recovered! VI - The Slumbering Bear: The Russian Electronic Components Market... VIII - Fortronic: an international success IX - 2012 China Market outlook X - 16th year of the SPDEI trophes Awards XI - A challenging year for the US market XII - High-Speed Back & Midplane Connectors continue to evolve XVI - Electronics Market: Europe at the crossroads

n 1 - 2012

federatIon

INTERNATIoNAl DISTRIBUTIoN oF ElECTRoNICS ASSoCIATIoN

IDEA

India: 2011
National Policy on Electronics
Vision for establishing a globally competitive industry by 2020 final draft
by Rajoo Goel Elcina
www.elcina.com

Adam Fletcher Chairman of IDEA We are delighted to provide IDEA members and readers with a summary and early insight into Indias National Policy on Electronics, it makes fascinating reading... It highlights Indias cultural ability to weave the benefits of managed and free market economies in developing a policy for an entire sector that is managed but where entrepreneurship also has a leading role... As the Indian electronics sector develops it will create many opportunities for collaboration in a rapidly expanding economy that is politically stable, has well established legal systems and is open for business.

lectronics Industry reported at USD 1.75 Trillion globally is the largest and fastest growing manufacturing industry in the world. It is expected to reach USD 2.4 Trillion by 2020.

iMPorTanT!
see page XVI for details of a major European IDEA conference.

ASSOCIATIONS
ADEC - South Africa
Association of Distributors of Electronic Components

The National Policy of Electronics, 2011 envisions creating a globally competitive Electronics System Design & Manufacturing (ESDM) industry including nano-electronics
The demand in the Indian market was USD 45 Billion in 2008-09 and is expected to reach USD 400 Billion by 2020. Domestic demand is driven by growth in income levels leading to higher off-take of electronics products, automation demands of corporate sector and the governments focus on e-governance. The domestic production in 2008-09 was about USD 20 Billion but is saddled with low value-addition due to various structural challenges resulting in high costs. At the current rate of growth, the domestic production can cater to a demand of USD 100 Billion in 2020 as against a projected demand of USD 400 Billion and the rest would have to be met by imports. This aggregates to a demand supply gap of nearly USD 300 Billion by 2020 and unless the situation is corrected, it is likely that by 2020, the electronics import will exceed oil imports. India is a recognised global player in software and software services sector. It lags behind in electronics hardware manufacturing capabilities, though it is increasingly becoming a destination for chip design and embedded software. The vision of the Policy is

to transform India into a global hub for electronics system design and manufacturing (ESDM) so as to meet the growing domestic and global demand. The National Policy of Electronics 2011 envisions creating a globally competitive ESDM industry including nano-electronics to meet the countrys needs and serve the international market.

ARDEC - Russia

Autonomous Register of Distributors of Electronic Components

ASSODEL - Italy CEDA - China

Associazione Nazionale Fornitori Elettronica China Electronics Distributor Alliance

The Main Policy objecTives are: 1. To achieve a turnover of about USD 400 Billion by
2020 involving investment of about USD 100 Billion and employment to around 28 million by 2020. 2. To set up over 200 Electronic Manufacturing clusters. 3. To significantly upscale high-end human resource creation to 2500 PhDs annually by 2020 in the sector. This policy is the result of a strong realization within the Government of India about the huge potential of this industry and relentless efforts by all stakeholders to arrive at a consensus on the causes of the slow growth and steps required to rectify the situation. The challenge in preparing such a policy is to converge divergent interests and dovetail them with national objectives as well as economic interests of industry which drive investments and progress. The policy itself is worthy of praise but the key to
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ECAANZ - Australia

Electronic Components Association Australia and New Zealand

ECIA - United States

Electronic Components Industry Association

ECSN - United Kingdom ELCINA - India

Electronic Components Supply Network Electronic Industries Association of India

FBDI - Germany

Fachverband der Bauelemente Distribution

FEDELEC - Tunisia SE - Sweden

Tunisian Federation of Electric and Electronic Industries The Swedish Electronics Trade Associations

JEpIA - Japan
FEBRUARY 2012

Japan Electronic Products Importers Association

SpDEI - France

Syndicat Professionnel de la Distribution en Electronique Industrielle

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its success lies in implementation. To create a globally competitive electronics design and manufacturing industry, a lot of ground work needs INTERNATIONAL to be done. Huge investments are ELECTRONICS SUPPLIERS required throughout the Value Chain as there are big gaps at all levels.

objecTives
The policy envisages to achieve the following key objectives, among others: To create an eco-system for a globally competitive ESDM sector in the country to achieve a turnover of about USD 400 Billion by 2020 involving investment of about USD 100 Billion and employment to 28 Million people. Build on the emerging chip design and embedded software industry to achieve global leadership in VLSI, chip design and other frontier technical areas and to achieve turnover of USD 55 Billion by 2020. To increase the export in ESDM sector from USD 5.5 Billion to USD 80 Billion by 2020. Enhance availability of skilled manpower in the ESDM sector with Special focus for augmenting post graduate education and to produce about 2500 PhDs annually by 2020. To create an institutional mechanism for developing and mandating standards and certification for electronic products

sTraTegies To achieve The objecTives

In order to implement its objectives, the Policy provides for the following strategic actions over the next decade: Provide attractive fiscal incentives across the value chain of the ESDM sector through a Modified Special Incentive Package Scheme (M-SIPS) to eliminate the disability costs in manufacturing Facilitate setting up of Semiconductor Wafer Fab facilities and its eco-system for design Consorzio di attivit servizi and fabricationeof chips and chip per Associazioni components. e gruppi dimprese Provide Preferential Market Access for domestically manufactured and designed electronic products specially for which IPR resides in India to address strategic and security concerns of the Government consistent with international commitments. Facilitate setting up of over 200 Electronic Manufacturing Clusters (EMCs) with world class logistics and infrastructure and easy to do business facilities. Provide financial, fiscal and logistics assistance for setting up of Greenfield EMCs and upgrade the existing Brownfield EMCs. EMCs to use Information Technology Investment Region (ITIR) infrastructure wherever available as well as avail benefits of National Manufacturing Policy and National Investment and Manufacturing Zones (NIMZs). Establish a stable tax regime (both at the Central and State level) conducive to attract global investments and to encourage

and services to strengthen Quality Assessment infrastructure nationwide. To develop an appropriate security ecosystem in ESDM for its strategic use. Create long-term partnerships between EDSM industry and strategic sectors like Defence, Space, and Atomic Energy etc. Make India a global leader in creating Intellectual Property (IP) in the ESDM sector by increasing fund flow for R&D, seed capital and venture capital for start-ups in the ESDM and nano electronics sectors. Among its objectives, the NPE2011 also includes developing core competencies in sectors like automotive, avionics, industrial, medical, solar, Information and Broadcasting etc through use of ESDM, the use technology to develop electronic products catering to domestic needs and conditions at affordable prices, adoption of best practices in e-waste management, facilitate loan funding for ESDM units and create supportive and specialized governance structures to cater to specific needs of the ESDM sector.

the NPE-2011 includes developing core competencies in sectors like automotive, avionics, industrial, medical, solar etc
large pool of skilled manpower to drive growth in electronics manufacturing. The key identified actions are as follows: To work closely with Private Sector, Universities and other Institutions of learning and to design programmes to ensure that adequate trained and skilled manpower is available to the industry. Facilitate enhancement of the number of graduates and other skilled manpower by suitably increasing capacities in colleges/ ITIs and Polytechnics. To support creation of capacities within academic institutions to produce adequate number of PhDs and post-graduates for research in chip design, embedded software and board/hardware design industry in the country. Set up skill-oriented courses and training programmes for electronic design along with hands-on training laboratories for ESDM. Creation of a specialized Institute for semiconductor design; Very large Scale Integration (VlSI) chip design to include larger number of colleges and students leveraging the National Knowledge Network. Facilitate faculty development in various ESDM related subjects.

Among its objectives,

Industry demand in the Indian market was USD 45 Billion in 2008-09 and is expected to reach USD 400 Billion by 2020
electronics sector through appropriate fiscal incentives and taxation mechanisms. To declare mobile phones specifically and other electronics products for data communication as goods of special importance under the Central Sales Tax Act.

The Electronics

economies of scale by providing requisite incentives and by streamlining procedures and logistics to facilitate import of components/sub-systems and export of products. Promotion of Exports would include support through the Focus Products Scheme and to emerging markets to an expanded list of items under the ESDM sector including EMS industry, fiscal support to ITA-1/zero duty electronics products, support relocation of manufacturing facilities to India, as wel as market and showcase chip design, product design and embedded software industry capabilities.

DeveloPing anD ManDaTing sTanDarDs

The policy envisages to curb inflow of sub-standard and unsafe electronic products by mandating technical and safety standards and develop Indian standards to meet specific Indian conditions including climatic, power supply and handling conditions etc.,

ProMoTion of exPorTs
The Policy gives special emphasis on exports to generate volumes and

huMan resource DeveloPMenT

HRD has been given special importance in the policy to create a

II

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To mandate technical standards in the interest of public health and safety Set up an institutional mechanism within Department of Information Technology for mandating compliance to standards for electronics products. Develop a National Policy Framework for enforcement and use of Standards and Quality Management Processes. Strengthening the lab infrastructure for testing of electronic products and development of conformity assessment infrastructure by private participation. Creating awareness amongst consumers against sub-standard and spurious electronic products. of indigenous appropriate products through frontier technology/product oriented research, testing & validation of security of products meeting the protection profile requirements needed to secure the ICT infrastructure and cyber space of the country. commercialization of products, etc. in the ESDM, nano electronics and IT sectors by providing appropriate funding/incentives to Industry/ Academic/R&D institutions. The Fund would facilitate IP development by Indian industry, academic and R&D institutions. All Funds to be professionally managed, giving special thrust to innovation and R&D for Green Technologies, Convergence and Broadband technologies. dumping in the country, to facilitate implementation of Extended Producers Responsibility for electronic hardware manufacturers as well as recyclers and to promote development of e-waste INTERNATIONAL ELECTRONICS recycling industry for domestically SUPPLIERS produced e-waste.

sTraTegic elecTronics
The Policy gives emphasis to promote manufacturing capacities for sourcing ESDM in strategic sectors - Defence, Atomic Energy, Space and Internal Security. This would be achieved by developing long-term partnerships between domestic ESDM industry with strategic sectors for sourcing electronic products domestically and implementing the Defence offset obligations for electronic procurements to be met through ESDM products.

governance sTrucTures
The National Electronics Policy recommends setting up a National Electronics Mission with industry participation to evolve programmes in pursuit of the laid down policies and also to create Institutional mechanisms to advance the implementation of various programmes aimed at achieving the objectives enumerated in this policy and to promote India as an Electronics Hardware Manufacturing Hub and suitably market Brand India in Electronics.
Consorzio di attivit e servizi For information, interested per Associazioni organisations may contact: e gruppi dimprese The Joint Secretary Department of Information Technology Ministry of Communication & Information Technology Government of India Electronics Niketan 6, CGo Complex new delhi 110003, www.mit.gov.in

laying down of procedures to prevent e-waste dumping in the country

This fund would also promote entrepreneurship in ESDM sector in active collaboration with Industry, Industry Associations and Academia by ensuring availability of Angel Funds and Venture Capital Funds. To set up VlSI specific Incubation Centres in four different cities in the country in association with Software Technology Parks of India (STPI)/ Academic Institutions/Industry. To design and develop India Microprocessor for diverse specific/ strategic applications.

The policy suggests

cyber securiTy
The Policy envisions creation of a complete secure cyber eco-system in the country, careful and due attention is required for creation of technology and systems, use of appropriate technology and more importantly development of appropriate products & solutions. The priorities for action will be suitable design and development

creaTing an eco-sysTeM for vibranT innovaTion anD r&D:

The Policy proposes to create an Electronic Development Fund to promote Innovation and IP and R&D,

electronics in other sectors

The following specific initiatives are envisaged by the Policy in other application sectors: Automotive Electronics: To develop a Centre of Excellence for the development of Microcontroller Units (MCUs), Micro-electromechanical systems (MEMS) and other advanced electronic devices Avionics: Support the growth of aviation industry by facilitating the development of research and development and outsourcing of engineering design and related software for avionics LED: Encourage the manufacture and usage of LED lighting solutions especially in rural markets through innovative products like solar LED lamps for lighting in public places Industrial Electronics: Establish a Centre of Excellence for innovation in Industrial Electronics with focus on making affordable standardized products which help India to maintain its growth in industrial segments including textiles, food processing, steel, engineering etc The Policy also makes special mention for initiatives in Medical Electronics, Solar Photovoltaic to build manufacturing capacity of solar photo-voltaic, and create an eco-system for Information and Broadcasting for manufacture of set-top boxes and other broadcast equipment in the country as part of the digitalization of the broadcast network of the country.

hanDling e-wasTe
The Government has recognized the importance of E-Waste Management and sustainable development and emphasizes creation of friendly e-waste handling policies and to streamline the implementation of e-waste (Management and Handling) Rules, 2011 including restrictions on usage of hazardous substances as per global best-practices. The policy suggests laying down of procedures to prevent e-waste

Stakeholders from the electronics Industry who are interested in investing in the Indian electronics Sector or in doing business with the electronics industry in India may contact: The Secretary General ELCINA Electronic Industries Association of India 422 Okhla Industrial Estate- Phase III, New Delhi -110020 INDIA [email protected] www.elcina.com

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Q4 2011: at lEast thE book:bIll ratIo rEcovErEd!

INTERNATIONAL ELECTRONICS SUPPLIERS

0.96

by Gary Kibblewhite
www.ideaelectronics.com

011 turned out to be a good year for most of us, despite the gradual market decline experienced during the year. However, the billings decline particularly has continued in the fourth quarter in all regions. The only bright spark on the horizon was that the book:bill ratio improved in Q4 growing from 0.88:1 to 0.94:1. When Consorzio this ratio improves it ishopefully... a good di attivittheservizi and as Q1 sign for e future per Associazionibe a good in most years tends to e gruppi dimprese quarter lets hope it heralds a market improvement.
20% 15% 10%

Just to remind readers. If you would like to have the original graphics used in this article just email to the IDEA secretary at [email protected] The IDEA statistics are taken from actual bookings and billings returns made by a substantial percentage of the electronic component distributors in Europe, including all the major distribution groups. Their sales represent Circa 70% of the total European distribution market so the trends shown are truly representative.

Q4 2011 TOTAL COMpONENTS BOOKING, BILLING & BOOK:BILL RATIO Graphic T1 ratio
To tal d istrib utio n e le ctron ic co mpo n en ts bo oki ng , b ill ing an d Bo ok:b ill ra tio fo r G e rma ny, Fra nce , Ital y, UK , Sw ed en , Nor way, De nm ar k & Fin lan d
1.33

4th Qtr. 2011 Total Components B ooking, B illing & Book:bi ll

2000

1. 40

0.91

1500

1.08

1. 20 0.98

Billing
0.95 0.94

1.16

1.15

FORTRONIC
1. 00
electronics f o r u m

1.09

1.11

1000

0.88

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0. 80

B2 B

500 0. 60
Associazione Nazionale Fornitori Elettronica

0 Q 1-09 Q 2-09 Q 3-09 Q 4-09 Q 1-10 Q 2-10 Q 3-10 Q 4-10 Q 1-11 Q 2-11 Q 3-11 Q 4-11

0. 40

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G r aph ic T -1

International Distribution of Electronics Association

-11.2%

-11.7%

-10.4%

-10% -15% -20% -25%

-8.4%

-8.0%

-7.5%

the best in Germany and the worst in France. Just to remind readers. If you would like to have the original graphics used in this article just email to the IDEA secretary laura Baronchelli at [email protected] The IDEA statistics are taken from 4th Qtr. 2011 Total C om ponents YTD Bookings Trend actual bookings and billings returns C umu la tive o rd er s fo r E lectro n ic co mp o ne nts via distri bu tion by co un try for cu rr en t ye a r to d ate co Graphic T1 below, this shows themp are d w ith sa me p e rio d p by yea r substantial percentage of made rio r a actual sales and orders across the electronic component distributors Europe together with the book:bill in Europe, including all the major ratio. Whilst the growth experienced distribution groups. Their sales in 2010 & 2011 has not been represent Circa 70% of the total maintained, we have not slipped European distribution market so the below the 2009 levels. trends shown are truly representative.
14.7% 7.4% 10.2% 7.1% 5.4% 0.5% 5% 0% -1.5% -3.2% -1.9% -3.8% -5% -3.2% Q1 Q2 Q3 Q4

2012 was a good year for the industry

Investment rate of non-nancial corporations

Euro area 24% 23%
20%

4th Qtr. 2011 Total Co m ponen ts B oo king T rend

EU27

(seasonally adjusted)
INTERNATIONAL ELECTRONICS SUPPLIERS

D istrib u ti on o rd e rs for E le ctron ic co m po n en ts by co un try com pa rin g Q 4 2 0 11 w ith p rio r qu a rter (Q /Q 1) an d sa m e q u ar te r p rio r yea r (Q /Q Y-1 )
15.8%

24% 23% 22%

22% 21% 20% 19%

10%

6.1%

21% 20%
Q / Q -1

0%

-2 0 Source:% eurostat

130 125 120 115 110 105 100 95 90 85 80 11-2002 02-2003 05-2003 08-2003

Percent

-7.3%

-5.4%

-14.0%

11-2003

02-2004

05-2004

08-2004

11-2004

02-2005

05-2005

08-2005

11-2005

02-2006

05-2006

08-2006

11-2006

02-2007

05-2007

08-2007

11-2007

02-2008

05-2008

08-2008

11-2008

02-2009

05-2009

08-2009

11-2009

02-2010

05-2010

08-2010

11-2010

02-2011

05-2011

08-2011

Q1 Q2 Q3 Q4 Q1 -8.1% Q2 Q3 -23.8% Q4 Q1 Q2 Q3 Q4 Q1 Q2 -6.0% Q3 Q4 Q1 Q2 -10.9%Q3 Q4 Q1 -18.0% Q2 Q3 Q4 Q1 -7.8%Q2 Q3 Q4 -38.7% Q1 Q2 Q3 Q4 Q1 Q2 -31.5% Q3 Q4 Q1 Q2 Q3 -13.2% Q4 Q1 -21.4% Q2 Q3 Q4 Q1 Q2 Q3 Q4
-1 0 %

Percent change

19%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011 Q / Q Y -1
Consorzio di attivit e servizi per Associazioni e gruppi dimprese

-3 0 %

-4 0 %

Euro area and EU27 industrial new orders, total manufacturing working on orders

Euro area, seasonally adjusted series

EU27, seasonally adjusted series

-5 0 % A vg Fr a nc e UK G r a ph i c T -2 Ita l y No r di c G er m an y

Secondly Graphic T6 below shows that the billings are still declining across all the regions with cumulative sales, compared with the prior year,
Avg F r ance UK

-21.1%

-18.2%

I taly

G rap h ic T -5

on the positive side the latest Eurostat investment analysis shows that the business investment rate
No rd i c G erm an y

-21.6%

econoMic bacKgrounD

-15.6%

Source: eurostat

2005=100

(Q/QY -1) Q4 2011 TOTAL COMpONENTS TENDENTIAL INDEX BY COUNTRY (Q/QY-1) Graphic T6 Tre Graphic T6 nd sho w in g g ro w th/d ecli ne % in q ua rter ly sale s of a ll co m p on en ts th ro u gh distri bu tion spl it b y
co un try com pa re d w i th sam e q ua rte r pr ior ye a r
70%

4th Qtr. 2011 To tal Co m p on ents Tend en tial In dex b y C ou ntry

The book:bill ratio improved in Q4 of non-financial corporations rose

sharply in the quarter. This continues the upward trend of investment that followed a sharp decline in 2008/2009. However, the latest stats on Industrial new orders shows a drop in November, this is confirmation of a worrying trend. Finally unemployment disturbingly continues to rise in most countries. Interestingly, data from Eurostat

50%

30%

F ra n ce UK FORTRONIC
electronics f o r u m

10%

I ta l y N o rd ic G e rm a n y
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shows that for the first ten months of 2011 there was a continuing growth in European trade with China. European exports to China grew by 21%, from 92 bn in the first ten months of 2010 to 112 bn in the first ten months of 2011, while imports rose by 5%, from 232 bn to 244 bn.

-1 0 %

-3 0 %
Associazione Nazionale Fornitori Elettronica

elecTronic coMPonenT sales in Q4: overview

Graphic T2 above shows that, on a quarterly basis, the decline in quarterly bookings, compared

-5 0 % Q 1 -0 9 Q 2 -0 9 Q 3 -0 9 Q 4 -0 9 Q 1 -1 0 Q 2 -1 0 Q 3 -1 0 Q 4 -1 0 Q 1 -1 1 Q 2 -1 1 Q 3 -1 1 Q 4 -1 1

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G ra p h ic T -6

International Distribution of Electronics Association

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11-2011

1.16

1.15

0.9

0.94

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1.09

1.11

1000 0.96

0.88

Boo king

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News
International Distribution of Electronics Association
Graphic T2

0 Q 1-09 Q 2-09 Q 3-09 Q 4-09 Q 1-10 Q 2-10 Q 3-10 Q 4-10 Q 1-11 Q 2-11 Q 3-11 Q 4-11

0. 40

G r aph ic T -1

4th Qtr. 2011 BOOKING TREND Q4 2011 TOTAL COMpONENTS T o tal Co m p o nen ts B oo kin g T rend

D istrib u ti on o rd e rs for E le ctron ic co m po n en ts by c o un try com pa rin g Q 4 2 0 11 w ith p rio r qu a rter (Q /Q 1) an d sa m e q u ar te r p rio r yea r (Q /Q Y-1 )
20% 15.8%

10%

0% -6.0%

components have fared well in 2011 with all regions posting a cumulative growth
FORTRONIC Q / Q -1
electronics f o r u m

Electromechanical

6.1%

Electromechanical components have fared well in 2011 with all regions posting a cumulative growth in sales compared with the prior year.
INTERNATIONAL ELECTRONICS SUPPLIERS

-8.1%

-7.8%

-1 0 %

-10.9%

-13.2%

Q / Q Y -1
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-2 0 % -23.8%

-3 0 %

-4 0 %

-5 0 % A vg Fr a nc e UK G r a ph i c T -2 Ita l y No r di c G er m an y
International Distribution of Electronics Association

20.7%

Associazione Nazionale Fornitori Elettronica

10.0%

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Percent

4.0%

3.9%

1400

-1.5%

-7.9%

-8.0%

-8.8%

1.40
Billing
1.19

-9.8%

-6.1%

1200

-3.7%

1.44

-2.1%

Distribution semiconductor bookings, billings & book:bill ratio for Germany, France, Italy, U K, 1.60 Sweden, Norway, Denmark & Finland

INTERNATIONAL ELECTRONICS SUPPLIERS

0.0%

0.8%

ratio

1000
1.13 1.17 1.12

1.20
1.08

800

FORTRONIC Booking
electronics f o r u m

0.95

0.96

1.00
0.93 0.91 0.86
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0.89

600

B2B

400 200

0.80

Consorzio di attivit e servizi per Associazioni e gruppi dimprese

0.60
Associazione Nazionale Fornitori Elettronica

0 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q 3-11 Q4-11

0.40

27.6%

26.7%

22.6%

Percent

0.8%

27.3%

quarter in all regions 40%

30%

INTERNATIONAL ELECTRONICS SUPPLIERS

8.3%

3.9%

QuarTerly sales However, billings Semiconductor Booking Trendby 4th Qtr 2011 faMily decline has continued in the countryProDucTthe prior quarter (Q/Q1) and the Distribution orders for semiconductors by compared with
with 20% same period prior year, the has continued, with Italy suffering 10% the worst drop of 37% and France 0% -10% showing the least drop of 6%.
Percent
-1.4% -11.0%

13.9%

13.4%

10.0%

10.1%

12.3%

12.9%

13.2%

19.5%

20.7%

International Distribution of Electronics Association

24.5%

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Graphic S-1

Q4 2011 E-MECh COMpONENTS BILLING TREND YTD Billings trend Graphic E4 4th Qtr. 2011 E-Mech component Consorzio Cumulative sales of electromechanical components through distribution showing the growth/decline % compared with the same period prior year di attivit e servizi 40% per Associazioni 30% e gruppi dimprese
31.3% Q1 Q2 Q3 FORTRONIC
electronics f o r u m

17.6%

18.3%

-10.7%

2.0%

Q4 2011 4th Qtr. 2011 Semiconductor Bookings,& BOOK:BILL RATIO SEMICONDUCTOR BOOKING, BILLING Billings & book:bill

Graphic S1

by geograPhic region Graphic S1 above shows that Graphic T3 below shows that all although both bookings and billings 4th Qtr 2011 Emech Components Billings Trend regions suffered a further billings continue to decline, the book:bill Distn sales of emech components comparing current qtr with prior qtr ( Q/Q-1) and same qtr prior year ( Q/QY-1) trend improvement in Q4 is a good sign for plus YTDdecline in the quarter with, when 30% compared with the same quarter in Q1. 2012. the prior year, Germany faring the 20% Q/Q-1 best with only a 9% billings decline Graphic P1 above covering Passives Q/QY-1 and France, Nordic & Italy faring the also shows an improvement in 10% worst with an 18% decline. YTD'11 / the book:bill in the quarter with YTD'10 the 0% book:bill mirroring that of Q1 Similarly, Graphic T2 below shows 2009. As the first quarter in the -10% that the bookings in all regions in the year is normally strong a further quarter, when compared with the improvement is expected. -20% All France UK Italy Nordic Germany same period prior year, were poor Graphic E-3 with all regions posting a reduction. Graphic E4 above shows that
9.4% 13.2%

Percent change

QuarTerly sales & orDers

-18.0%

-38.7%

-31.5%

-21.4%

20%

15.9%

3.1%

3.2%

same quarter prior year ( Q/QY-1)

-7.3%

Each quarter we look at both booking and billing trends by both product and by market. Firstly product. Breaking the product total into the main elements,Q/Q-1 initially Q/QY-1 the largest:-Semiconductors.
-14.6% -25.0%

10%

9.4%

16.9%

Q4
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0%

-10%

-20% Avg France UK Graphic E-4 Italy Nordic Germany

Associazione Nazionale Fornitori Elettronica

-20%

-15.3%

-12.7%

Consorzio di attivit e servizi per Associazioni e gruppi dimprese

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International Distribution of Electronics Association

-25.2%

-40% -50% 250

-28.7%

Q4-30% pASSIvES BOOKING, BILLING & BOOK:BILL RATIO 2011 4th Qtr 2011 Passives booking, billing & book:bill ratio
-42.2% -43.3%

Graphic P1

Q4 2011 TOTAL COMpONENTS BILLING TREND 4th Q tr. 2011 Total Components
0% -2% -4% -6%

Billing Trend

Graphic T3
INTERNATIONAL ELECTRONICS SUPPLIERS

Passive components Bookings, billings & book:bill ratio for Germany, France, Italy, UK, Sweden, Norway, Denmark & Finland
All France UK Graphic S-2 Italy Nordic Germany

D istr ib utio n sa le s o f E lectro n ic Com po ne n ts b y Cou n try comp a rin g cu rre nt q tr w ith p rio r qu a rter ( Q /Q1 ) a nd sam e q ua rte r pri or ye a r ( Q/Q -4 )

1.40 1.30 1.20 Billing

Percent change

1.14

1.13

1.13

200

1.09

1.06

1.10 1.02 0.96 1.00 0.92 0.88 0.90 0.80 0.70

1.01

0.96

150 0.93

Booking

electronics

f o r u m

-9.9%

- 12.4%

-14.9%

- 16% - 18% - 20%

0.50 0 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Graphic P-1
International Distribution of Electronics Association

-18.1%

Avg

F ran ce

-18.6%

0.40

-17.8%

-15.3%

50

0.60

-14.0%

- 14%

-12.7%

-11.8%

the electronic community

-11.5%

100

B2B
enjoy

- 10% - 12%

-9.1%

FORTRONIC

-8%

FORTRONIC
electronics f o r u m

Consorzio enjoy Q/Q-4 servizi di attivit e the electronic community per Associazioni e gruppi dimprese

Q/Q-1

Associazione Nazionale Fornitori Elettronica

Associazione Nazionale Fornitori Elettronica

UK Gr aph ic T -3

Italy

No rd ic

G er man y

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International Distribution of Electronics Association

4th Qtr 2011 Passive components Booking Trend

Distribution orders for passive components by country comparing Q4 2011 with the prior quarter (Q/Q-1) and the same quarter prior year (Q/QY-1) 20% 10%
35%

4th Q tr. 2011 Total Com ponents YTD B illings Trend

INTERNATIONAL ELECTRONICS SUPPLIERS

14.3%

Cu mu la tive sa les o f Ele ctro nic co mp on en ts via d istrib utio n b y cou n tr y fo r cu rre nt ye ar to da te com pa re d wi th sam e p er iod pr ior ye a r
40% 34.2%

INTERNATIONAL ELECTRONICS SUPPLIERS

0%
26.9% 26.7% 30% 27.0%

P ercent

-10.0%

-6.7%

-10.7%

-10% -20%

-6.2%

-13.9%

20.7%

20.4%

rcent

6.0%

20.4%

Q/Q-1 Q/QY-1 Consorzio

25%

www.ideaelectronics.com Q1
Q2
Consorzio

.8%

.6%

20%

3%

Q3

Fornitori Elettronica

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the slumbering bear: the russian Electronic components Market...

by Adam Fletcher Chairman of IDEA and ECSN
www.ecsn-uk.org

The Russia Federation is potentially a huge market for electronic components but requires a colossal investment in its infrastructure and political and legal systems as well as a redefinition of its cultural norms, says Adam Fletcher, Chairman at the International Distribution of Electronics Association. The rate of change is increasing but not nearly fast enough and it may take a couple of generations for Russia to raise its game and actively compete in the global electronics market.
politicians who were granted generous shares in formally state run enterprises. commodities undermined this activity and the investment has not yet really recovered.

et me start by applying a little perspective on the Russian electronic components market. Until comparatively recently the USSR Consorzio operated in a closed command di attivit e servizi economy where the state dictated per Associazioni what was to bedimprese and by e gruppi produced whom, and apparently kept the by when deliberately vague.

under President Gorbachev in the mid 1980s drove huge changes throughout the Russian empire, ultimately leading to the breakup of the USSR. The greater focus on liberalising and reforming the Russian economy created opportunities for individuals and organisations both within and outside the country but in the process created enormous tensions. Having to manage huge change in an entire socio-economic system resulted in a near economic disaster.

invesTMenT
The Russian Government eventually recognised that the electronics sector and in particular the semiconductor industry could be an area of high growth and strategic importance for the country. In the 60s 70s and 80s it invested heavily in semiconductor manufacturing, creating the closed city (limited access, no foreigners, no photographs) of Zelonograd with the aim of rivalling the USs Silicon Valley. Despite relocating 5,000 scientist and engineers to the new city the project proved unsuccessful and from the mid 80s the country suffered significant brain drain as many of the countrys best technologists migrated away, principally to the US and Israel. In 2006 the Russian government announced plans to invest $40bn in the semiconductor sector but a sharp drop in the price of

Three TyPes of coMPanies

Russian electronics manufacturers can be broadly summarised into three groups: 1. Government-backed federal enterprises; 2. private companies founded in the free market; 3. subsidiaries of primarily multinational organisations. Federal Government Enterprises are the remnants of state controlled enterprises which continue to be managed by the Russian Ministry of Industry and Trade, which directs 60% of its activity towards military applications, with the balance primarily directed towards domestic industrial products and infrastructure markets. Whilst many of these organisations are disparately vertically integrated they are

The Russia Federation is potentially a huge market for electronic components

As a result material deliveries where poorly scheduled and often late, with a years supply often arriving in a single shipment. In order to combat this overor-under supply situation the Russian supply chain established an informal system of passing products between plants in a rudimentary barter system. However the informal barter system eventually became a almost formalised trading operation with many individuals helping to balance demand by buying - or stealing - and selling excess inventory and in the process, adding to a culture of corruption from which some in the Soviet Communist Party hierarchy benefited immensely. The advent of Glasnost (openness) and Perestroika (market reforms)

Russia has huge reserves of natural resources particularly gas (largest global exporter) and oil (second largest global exporter), both of which have generated huge revenues for the country and enabled massive economic investment. Unfortunately investment cycles are closely linked to the price of these commodities and the primary beneficiaries have often proved to be largely undeserving oligarchs and

Russia is seen as an attractive location

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hampered by production capabilities that are both poorly managed and grossly out of date. The 350,000 people employed by the Ministry include a reasonable proportion of skilled technical and scientific employees but their efficiency and effectiveness is low - as is the R156K average annual salary (3K) - but efforts are being made to reorganise the best of these organisations into single vertically-integrated manufacturing companies along the lines of the Korean model. plants for lCD TVs there but these factories are supplied directly by their parent companies and source very little product within Russia. The Russian white goods market is almost entirely served by domestic manufacturers but without exception all the operations are joint ventures where the majority of ownership is in the hands of companies such as Siemens, Merloni, Candy and LG. Global CEMs such as Foxconn and Jabil have delayed planned investment until the Russian government removes customs tariffs and enables the free movement of goods. There is little hope of productive interoperation between these three primary types of Russian organisations any time soon, but the private electronic company sector does appear to offer a realistic prospect of growth. customer base. Their combined sales revenue was estimated to be 160M in 2009, which contrasts sharply with the UK where the electronic components market served by manufacturers in 2009 was >3bn. Some of these multinational organisations have licensed their technology to domestic Russian electronic component manufacturers and provide technical support for their implementation.

so whaTs holDing russia bacK?

Its apparent that given its population size (9th largest), education infrastructure and political status INTERNATIONAL ELECTRONICS Russia lags a long way behind the SUPPLIERS RoW in electronics. The market is severely undeveloped and whilst showing some growth has a very long way to go to meet its full potential. It will take a cultural mind-shift before the population fully understands how a market driven society operates. The Government must actively encourage long term systematic investment, reduce the size and autonomy of its military and police forces, strengthen the legislative systems and stop turning a convenient blind-eye to corruption..

multinational electronic components manufacturers have offices in Russia

There are today over 2,000 private electronic companies in Russia with combined sales revenue of R80bn (1.6bn). These organisations are much more dynamic and have made significant investment in new technologies. They trade mainly with international customers and domestic organisations similar to themselves but apparently find it difficult to supply goods and services to Federal Government Enterprises. Despite that Russia is seen as an attractive location - due to its proximity to Europe and the low salary levels for all labour particularly skilled scientists - the investment by wholly or partially owned subsidiaries of multinational electronics organisations has been extremely limited. There has been some external investment: Intel employs some 1,200 engineers at its Design Centre; ABB has a number of industrial design and manufacturing plants, and Siemens joint venture with Iskratel has its base in Russia. LG and Samsung have both built assembly

Twenty

elecTronic coMPonenT DisTribuTors

There are over 120 electronic components distributors operating in the Russian market with an estimated Distributor Total Available Market (DTAM) of 500M (for comparison the UK DTAM in 2009 was >1Bn). Very few global distributors operate directly in the Russian electronic components market, most trade through the operations of domestic distributors. The top twenty distributors account for 80% of the DTAM with the three largest Russian distributors being Compel (35M), Symmetron (30M) and PetroinTrade (25M). Many Russian distributors also have wholly owned subsidiaries involved with contract manufacturing, personal computer assembly and grey market supply.

It looks likely that

membership of the WTO will be granted in 2012

slumbering Russian Consorzio Bearattivit e servizi di fully awakens per Associazioni expect large e gruppi dimprese opportunities for investment and trade in global markets

When the

elecTronic coMPonenT ManufacTurers

Approximately one hundred domestic companies manufacture electronic components in Russia, almost none of which have name or brand recognition in Europe. In 2009 it was estimated that the total sales revenue for electronic components manufactured in Russia was 240M of which only 30% was exported, primarily to support military equipment and for use in low tech consumer products. Twenty multinational electronic components manufacturers have offices in Russia, primarily supporting their local distributors and a very limited

ToTal available MarKeT

Combining the revenues of all the known elements in the Russian electronic components market leads us to conclude that the total 2009 sales revenue was approximately 900M (for comparison the UK 200 TAM was >4Bn), but the Russian Federal Government doesnt disclose electronics manufacture revenue figures but best guesses suggests that we dont have to add more than a further 500M to the earlier figure.

Sadly, changes dont happen quickly in Russia, a fact that has prevented the countrys membership of the World Trade organisation (WTo) for the last twenty years. Today however it looks likely that membership of the WTo will be granted in 2012, a great achievement that is sure to speed the pace of change. You only need to look at the huge changes and investment in Eastern Germany following unification to realise that there is huge potential for change in Russia - said Fletcher - When the slumbering Russian Bear fully awakens expect large opportunities for investment and trade in global markets.

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Fortronic: an international success

INTERNATIONAL ELECTRONICS SUPPLIERS

by Silvio Baronchelli President of IDEA

he Fortronic Forum concept has been proven over 7 years of events in Italy and, since 2010, in other European countries such as Tunisia, Turkey, Spain and the UK. The Fortronic events have, and are being, supported by the electronic

industry leading companies including electronic components manufacturers and distributors and represent an important meeting point for companies. The events have proven very costeffective and, because of their focus on technologies, attract more design engineers and provide a cost-perlead far less than a supplier can achieve in a single event or exhibition. This model has also been claimed as a winning formula by Intellect (www.intellectuk.org) amongst the alternatives and promotional events analysed worldwide. (conferences, seminars, shows and fairs).
2012 CALENDAR
When Where

Fortronic Forums for

design engineers. A winning formula

Technology focus
Fortronic is one full day of electronics and new technologies aimed at generating demand creation on the market. The event is typically structured in: Morning Conference: with 5-6 presentations given by the top players covering the latest trends in the chosen technology. The presentations are coordinated by a technical manager.

Workshops and educational sessions: during the afternoon, a series of Technical Workshops and educational training sessions aims at transferring design and technical competences to the attendees. Community area: a meeting-point designed to support the electronics industry supply-chain plus with a solutions area. For information: (if ready) www.fortronicforum.com

2012 calenDar
The 2012 Calendar of Fortronic Forum comprises 8 events in Italy, 3 in the UK and 1 in Tunisia.

IDEA e servizi di attivit

Consorzio

ProMoTe your coMPany e gruppi dimprese To ThousanDs of elecTronic inDusTry execuTives!

For the last 20 years the IDEA News has been supported by the Electronics Trade Associations across the World but increasing costs have led us to offering a single sponsorship for each of our issues. The sponsor will have their name shown together with their company logo. They will also have either one two-column or two single-column adverts per issue. Just to remind you, the IDEA News is circulated to over 4000 named individuals in over 3000 electronics companies in 10 major countries across the World. Sponsorship costs for 2012 are: 1 issue: 1.200 (1.050 or $1.700) 2 issues: 1.100 (970 or $1.600) per issue 4 issues: 1.000 (880 or $1.400) per issue For more information please contact: [email protected]

per Associazioni

Fortronic

topics

8th March 27 March

th

Turin, Italy Oxford, UK Milan, Italy Verona, Italy Milan, Italy Tunis, Tunisia Milan, Italy Oxford, UK Bologna, Italy Padua, Italy Oxford, UK Rome, Italy

industrial Fortronic LeD&Lighting design Fortronic Lumen Fortronic solar Fortronic rF&Wireless Fortronic Fortronic tunisia embedded Fortronic rF&Wireless Fortronic power Fortronic Lumen Fortronic power Fortronic Lumen Fortronic

Automotive, industrial LED technology LED technology Photovoltaic technologies RF&Wireless Energy efficiency Embedded systems RF&Wireless Power electronics, energy efficiency LED technology Power electronics, energy efficiency LED technology

29th March May 17th May June June 26th June 20th September 12-13th October 23rd October 6th December

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2012 china Market outlook

by Amy Wang CEDA

www.cedachina.org

hinas market demand for semiconductors and components in 2012 is not clear for many suppliers and distributors. With reduced export orders from European countries, these suppliers and distributors had a bad time in dealing with export based customers in the second half 2011. However, we do find some companies have steady growth through developing niche business strategies. In this market intelligence report, China Outlook Consulting analysts will share with you our findings on these companies business strategies and insights about the market.

market. To some extent it may be risky that the majority of the growth of a company comes from one market or one customer. However, it still helps the company to set a foundation for future growth.

Smart Tv will be hot market in 2012

CoC analysts found that a good product was also key to being a winner in 2011. High-Density IGBT is such a product that helped some suppliers and distributors grow over 100% in 2011. In 2011, high density IGBT demand was so great that it led to short supplies helped by big demands from alternative energy markets. CoC analysts saw that some IGBT suppliers dare not promote their products in the second half of 2011 because manufacturing capacity couldnt satisfy the sudden demand from the market. The Chinese government encourages development of IGBT products in China and gives funds to only local IGBT suppliers. However, International suppliers can work with local Chinese partners if they want to have funds from the government. Since local Chinese IGBT companies can have a state-owned background, it helps international suppliers or distributors to quickly target a specific market and start business with local Chinese customers.

complain that the lED market hasnt grown as fast as they expected. However, CoC analysts think that lED lighting will be hot market in 2012 because of its wide applications not only for road lighting but also for smart home, vehicle, smart home appliance products and portable products.

5. Industrial applications: Chinas 12th five year plan encourages the development of mechanical automation and industrial control on traditional industrial sectors INTERNATIONAL ELECTRONICS like shipping and light industries. SUPPLIERS This will boost market demand for high reliable and high performance components and IC.

2. Solar Energy Applications: Along with change of power consumption, solar energy is key solution to satisfy our needs for clean and safe energy. Smart power management will be in high demand in 2012, which will bring big demand for AC-DC converters, DC-DC converters, MCU, battery and power module products as well as high performance and high density components. 3. Smart Home: 3-in-1 network
convergence is not new stuff and it went through a long journey due to benefits balance of Chinese government bodies. However, in 2012, it can move forward because of strong market demand, which will bring great demand for IC and components. Smart TV will be hot market in 2012. local Chinese IC suppliers will have great advantage of getting new business because of government support and their technology maturity these years.

Doing well in 2011

2011 was not a good year for many companies but it was a very good year for companies that had the right business strategies. CoC analysts found that having the right customers or right products are the key. For instance, a connector supplier executive noted that serving Apple and Nokias EMS helps the company grow dramatically, which made the company different from its competitors. of course, the company has well positioned itself in developing high-performance and high speed products. Also, some niche markets such as wireless base-stations has helped some passive component suppliers double their sales by serving this

6. Smart meters: Smart meters of water, electricity and gas will continuously be hot markets in 2012 Consorzio driven by attivit e servizi di the Chinese government energy per Associazioni In 2012, saving program. more Chinese supplies will compete e gruppi dimprese with international suppliers for this market because of technology programmes and government help.

niche sTraTegies froM suPPliers anD DisTribuTors:

CoC analysts summarized below strategies from successful suppliers and distributors after interviews with executives from these companies: Follow government direction and policies Focus on application markets like alternative energy or smart phone Add lines around one application market Provide design solution and module in stead of just selling IC or components Develop strategic partnership with local Chinese suppliers to get government funds.

4. Smart Phone: China will have

six hoT MarKeTs in 2012

CoC analysts recommend below hot markets for 2012: 1. LED lighting: Many suppliers

a big potential in the smart phone market. In the third quarter of 2011 China became largest smart phone market in the world, overtaking the US.

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INTERNATIONAL ELECTRONICS SUPPLIERS

16th year of the sPdEI trophes awards

by Michel Vincent Delegu Gnral SPDEI
www.spdei.fr

our industry and the role of industrial purchasing with a strong focus on the concept of total acquisition cost as a means of progress for our activities. A report will be published late December. Franois Kurek then passed the floor to Mr Prs, Director General of GL Events, the organisers of the CIEN. The major change to this years 2012 event is that it will integrate RF Hyper, Mesurexpovision, opto and the CIEN at the Parc des Expositions of the Porte de Versailles hall 1 23, 24 and 25 october 2012. Mr Kurek then passed the floor to the Delegate General of the SPDEI, Michel Vincent, who, prior to the announcement of the official award results, told the gathering that manufacturers are assessed on 5 criteria, namely: partnership / products / profitability / resources and support / Protection and traceability of the designs. He announced that 85% of the members of SPDEI were contacted electronically for voting and that 187 Evaluation Questionnaires were completed and that a total 120 manufacturers were cited for awards. Syndicat Professionnel de la Distribution en electronique industrielle 17 rue de lAmiral Hamelin 75783 Paris Cedex 16 Tl +33 09 61 56 42 47 Michel Vincent - [email protected]

News from sweden

by Lena Norder www.svenskelektronik.se SE - Swedish Electronics Trade Association Electronics The Swedish Electronics Trade - S.E.E., Association - SE, is looking forward to Scandinavian Event

he 16th annual Awards ceremony of the SPDEI took place on Wednesday, November 16, 2011 at the Automobile Club of France, Place de la Concorde in Paris before an audience of 140 people including manufacturers, members of the SPDEI, the representatives of the trade associations professional partners (GIXEl, SITElESC, GFIE, SNESE, FIEEC) and the technical press. The 2011 awards were Consorzio di attivit e servizi sponsored by Farnell, a member per Associazioni of the SPDEI and Gl organizing e gruppi dimprese Events of CIEN (Carrefour electronics industry and digital). In his introductory speech, Franois Kurek, President of the SPDEI commented on the current market conditions by announcing that 2011 be ultimately seen as a good vintage even if 2012 looks more uncertain! The beginning of the year will be difficult because of the decline in bookings which began in the third quarter of 2011. Following this, Franois Kurek informed the audience about SPDEI
2011 SpDEI TROphES oPToelecTronics, DisPlay (LED, LCD) The 3 nominees are: AVAGO, TOSHIBA, VISHAY The winner is: AVAGO

which comprises 29 companies of all sizes and representing all facets of franchised Distribution that make up more than 50% of local sales. SPDEI brings together those who

2011 will be ultimately seen as a good vintage

17-19 April in Stockholm, at the fair in Kista. The association and its members have worked with determination to create this new business arena for the industry, launched for the first time in 2010. This year, the second time, the event is moved to another part of Stockholm, to Kista Science City - the third greatest ICT-cluster in the world, after Silicon Valley and Bangalore. There are more than 5600 companies in Kista area and 1100 of them are in the field of IT and electronics. More than 1100 scientists and 5000 students are situated in Kista. S.E.E. is already fully booked. More than 5000 visitors came to S.E.E. in 2010 and the response was positive. Four out of five visitors said S.E.E. is the most important trade fair for them. Nine out of ten wanted to come again next time. The expectations are that even more visitors will come this year. See more: www.see-event.se Another event on the agenda is the Embedded Conference Scandinavia, coming up 2-3 Oct in Stockholm.

want to give a professional image of their capability and share their experiences as part of a permanent organisation to improve industry practices. SPDEI guarantee the sustainability of our business and the strong image of the Distributor franchisee, and represents the common interest of both the public authorities and partners on a daily basis. Then Franois Kurek concluded by saying that SPDEI has become an active and passionate organisation particularly since its accession to the FIEEC which provides a unique and rewarding visibility of both industry and the public authorities. Franois Kurek said also that the SPDEI is associated with FIEEC lobbying, and also its Think Tank, the Rodin Club a detailed study on

AbouT ThE mArkET 2011 was a fairly good year. For 2012 the general comment is to be prepared for everything: have one foot on each pedal. The industry in Sweden is doing fairly well, but the financial situation in Europe is a dark cloud of uncertainty hanging over the business arena. As Sweden is very dependent on export, the uncertainty in the rest of Europe have a direct impact on the Swedish industry. The automotive industry in general has recovered, although the car manufacturer SAAB has finally given up after a long stretch of brave struggle to save the company. There were willing buyers, but GM, former owner of SAAB and still owner of some of the property of SAAB, havent so far accepted any of the business proposals and now SAAB has run out of money. So in January the bankruptcy was a fact. It is yet to be seen what will become of the company. Telecom is also a very interesting market for Sweden. Ericsson recently presented the result for 2011: SEK 1.8 b. The expectations on Ericsson were much higher, causing a drop for Ericsson on the stock market. For 2011, we had a strong sales growth and an increase in net income. In the fourth quarter, however, we saw weaker development in Networks, as well as an expected gross margin impact from a changed business mix with more coverage projects, modernization projects in Europe, and a higher services share, said Hans Vestberg, President and CEO of Ericsson.

Passives (RLC) The 3 nominees are: BOURNS, PANASONIC, VISHAY The winner is: PANASONIC connecTors anD cables The 3 nominees are: ALPHAWIRE, CFI, TE Connectivity (ex TYCO) The winner is: ALPHAWIRE elecTroMechanical (relays, pushbuttons, Switches, keyboards...) The 3 nominees are: ALPS, ELEDIS, HONEYWELL The winner is: HONEYWELL energy (power supplies, batteries and Solar Panel...) The 3 nominees are: EMERSON, LINEAGE/GE, VICOR The winner is: EMERSON

coMPonenT sTanDarDs (logic, Analog, discrete, Memory) The 3 nominees are: MAXIM, TEXAS INSTRUMENTS, VISHAY The winner is: VISHAY analog, rf & Microwave The 3 nominees are: GENNUM, SEMTECH, SILICON LABS The winner is: SILICON LABS high enD DigiTal (microprocessors, FGPA, ASSP..) The 3 nominees are: FREESCALE, MICROCHIP, TEXAS INSTRUMENTS The winner is: TEXAS INSTRUMENTS

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an exciting year in prospect for the Us market

by Robin Gray President and CEO ECIA (USA) [email protected]
enhancements will be rolled out in January, so look for announcements shortly.

The managed inventory search on www.eciaauthorized.com has been a very popular with members
I encourage all members to add a link on their company website to the associations inventory website. And, for those distributor members that are not already participating, please contact me (at [email protected]) if you would like more information about participating in this valuable member service. Another project that is currently underway is an accurate and timely DTAM report. An ECIA task force is working on the final details of the industrys first complete DTAM for North American component sales. I anticipate that this project could be rolled out as early as Q3 if agreement can be reached with the major participants.

ather than looking back at 2011, I am focusing this column on what is ahead in 2012 for the electronic components industry and ECIA members. There are several exciting projects that are currently under development and should come to fruition in the new year. likewise, there are some governmental activities that will likely move forward in 2012 that will impact the industry.

students awareness of science and technology by engaging them in a robotics competition. The association is working with its members to donate the electronic components that are used in the kits given to the teams. For members, this is a great way to introduce your companys products to future engineers and scientists as well as getting exposure as a competition sponsor. For a list of the components that FIRST needs donated may be obtained on the associations website. If your company has some of these components or wants to contribute in some other fashion, please contact Michelle Meyer at [email protected]

INTERNATIONAL ELECTRONICS SUPPLIERS

electronic components from entering into the United States. The provision makes it clear that Customs and Border Protection (CBP) may provide unredacted photos or physical specimens of suspect products, labels and packaging to trademark rights holders (i.e., the manufacturers). Without this legislation, CBP officers were redacting (whiting-out) all markings other than company logos when sending trademark owners photos of suspected counterfeit products, which made identification nearly impossible.

invenTory search websiTe

This past year saw the association launch an industry owned and managed inventory search website (www.eciaauthorized.com) that provides users with unbiased and randomized results search of authorized inventory. The site has been a very popular member benefit and has experience steady growth. As the site has grown in popularity, the association has begun adding new features and enhancements to further benefit all of its members as well as provide a better experience for potential purchasers of electronic components. Some of these improvements are behind the scenes to improve the functionality, while others will be very apparent to visitors to the website. The first two

considering legislation to combat foreign rogue websites that are selling counterfeit products

Congress are

legislaTion
on the legislative front, the industry scored a victory when the Congress passed and the President signed into law the National Defense Authorization Act for FY12 which contains a provision that improved the detection and stopping of counterfeit

is currently underway is an accurate and timely DTAM report

Another project that

In anotherattivit e servizi houses di development both per Associazioni of Congress are considering legislation e gruppi dimprese to combat foreign rogue websites that are selling counterfeit products. A House bill is expected to be voted out of committee in mid-January, while a vote by the full Senate on the Stop Online Piracy Act (SOPA) is expected later in the month. ECIA will keep members apprised of developments regarding SoPA, as well as all the other activities and projects mentioned above. 2012 is shaping up to be an exciting year for the authorized sale of electronic components.

2012 is shaping up to be an exciting year Consorzio

ecia anD firsT

ECIA is partnering with FIRST, the Dean Kamen robotic competition event, to provide electronic components for this one of kind event. FIRST is a unique vehicle that increases middle and high school

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DISTRIBUTION

eiD news

Arrow Electronics announced that Brian Mcnally has been named INTERNATIONAL president of specialty businesses ELECTRONICS within the companys Global SUPPLIERS Components segment. Mr. Mcnally will focus on expanding the offerings and accelerating growth for this newly formed business group, including a.e. Petsche, richardson rfPd and nu Horizons electronics. Mr. Mcnally served as president of arrows europe, Middle east and africa Components business from 2008 to 2011. arrow electronics has also signed a global distribution agreement with triune Systems, involved in analog and mixed-signal technologies for ultra-low power energyharvesting, wireless battery-charging and solar power management. premier Farnell has added digilent, a manufacturer of electrical and computer engineering solutions, to its global distribution portfolio. digilent has a wide range of products for academic, industry professionals and academics in electrical and computer engineering fields. farnell has also been granted a Consorzio certificate of membership signifying the companys commitment to di attivit e servizi transparency in international per Associazioni commercial transactions by traCe e gruppi non-profit membership International, a dimprese association that pools resources to provide practical and cost-effective antibribery compliance solutions for multinational companies. RS Components, the trading brand of electrocomponents, is now stocking more than 10,000 product lines for industrial applications from Panasonic electronic Components. rS Components has also been recertified under the Carbon trust Standard by achieving further cuts in carbon emissions over the last two years. rS has demonstrated that, despite growing the size of its UK business, the effectiveness of its energy efficient strategy has improved. Mouser Electronics announced a global distribution agreement with Monolithic Power Systems (MPS), a fabless manufacturer of analog and mixed-signal semiconductors. Digi-Key announced the signing of a global distribution agreement with Lecroy, a provider of test and measurement solutions. Since 1964, LeCroy has been designing oscilloscopes, protocol analyzers, and related test and measurement solutions. digi-Key also announced the signing of a global distribution agreement with Lemo, a supplier of precision custom connection solutions. Lems push-pull connectors are found in a variety of challenging application environments.
Source: Electronics Industry Digest

high-speed back and Midplane connectors continue to evolve

by Bob Hult Bishop & Associates
www.bishopinc.com

onnectors that provide links between daughtercards mounted in a rack have come a long way over the past 20 years. Connector construction has evolved from simple one-piece edge connectors to two-piece open pin field configurations that provide higher pin counts and reliability. The current crop of high-speed backplane connectors are highly sophisticated components consisting of molded contact wafers, some with integrated metallic shields to control crosstalk. These wafers offer tightly controlled impedance, as well as design and manufacturing flexibility.

components associated with fiber optic alternatives, including fiber, transceivers, and connectors, continue to drop
specific needs. Advanced backplane connector families often include a full range of packaging options, including mezzanine, midplane, orthogonal midplane, and card extender configurations. Designers can package the entire system with compatible products, simplifying the design, documentation, and manufacturing process. Demonstrated performance headroom to provide confidence that connector technology will be able to keep pace with future anticipated bandwidth needs. Backplane connectors rated to 40 Gb/s are currently on the market, although broad market need for connectors operating at this speed may be three to five years into the future. We are currently in the process of transitioning from 5-6 Gb/s to 10 Gb/s systems. Achieving reliable 10 Gb/s channels is not a trivial accomplishment and many oEMs are still in the learning process. It appears that 25 Gb/s systems may be the next target, which will present additional challenges to every aspect of the system design. Suppliers are utilizing advanced manufacturing techniques to achieve higher published bandwidths. In some cases, suppliers are utilizing multiple dielectric materials to fine tune resonance or specialized geometry to minimize skew. Several of the highest performing backplane connectors are integrating capacitors into the contact wafer for DC blocking, resulting in improved noise margin. This also frees

The prices of

These advances have

enabled connectors to leap from megabit to multi-gigabit performance and It appears that 25 Gb/s systems may be the next target

These advances have enabled connectors to leap from megabit to multi-gigabit performance as the industry transitioned from single-ended to low- voltage differential signaling. The industry has very quickly transitioned from 3.125 Gb/s to systems that operate at 10+ Gb/s. The race among the leaders in the highspeed backplane connector segment appears to be highlighting several predominate themes. Performance scalability to closely match requirements of current and

future iterations within the same connector family. Within each connector family a series of good, better, and best variations are offered that provide somewhat higher/lower bandwidth, increased signal density, or lower cost. Backward compatibility allows upgrades without changing PCB artwork. In some cases, the right-angle daughtercard receptacle has been upgraded to allow a boost in performance of backplanes in existing systems. Connectors that utilize advanced PCB footprint routing offer another variation. Bandwidth bump continues as connectors originally designed for 5-6 Gb/s have morphed into 10-12+ Gb/s connectors. Modular connector assemblies that allow nearly custom configurations using a collection of standard components. Insert molded contact wafers are able to maintain tight control of dimensions, essential for signal integrity at higher speeds. Pin counts can be adjusted by selecting the appropriate number of wafers. Wafers designed for high-speed, low-speed, and power can be easily combined to satisfy very specific applications. Design engineers win, as they are able to fine-tune their design to match their

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up valuable space and simplifies routing on the PCB. Mechanically and electrically identical second sources that assure supply at competitive prices. Although they may not be announced at the introduction of a new interface, advanced connectors are often the results of early collaboration between two suppliers. This is less true for some older connector families, but becomes critical when major oEMs select a connector for a device that is expected to evolve over a long product life. Although not universal, connector families are often offered in both 100and 85-ohm differential impedance. Most suppliers are seeing increased interest in 85-ohm connectors, which not only matches the impedance of emerging silicon chips, but also offers the potential of thinner PCBs and less complex trace routing. This adjustment requires a change in connector materials and/or geometry, which may be costly. Those product families that are not currently offered in 85-ohm versions will likely be made available in both impedances as customer demand builds. 100 ohm is expected to dominate the market well into the future.

robert hult
Robert Hult has been in the connector industry for more than 39 years. Hult began his career as a sales engineer for Amphenol in Chicago. He joined AMP Inc. in 1972 and served in several management positions through 1996. In 1997, Hult joined Foxconn as group marketing manager for Intel

Director of Product Technology, bishop & associates inc.

in Chandler, Arizona, U.S. Prior to joining Bishop & Associates, Hult was the regional application engineering INTERNATIONAL manager for Tyco Electronics (now ELECTRONICS SUPPLIERS TE Connectivity). Hult graduated in 1968 from Bradley University with a bachelor of science degree in electronics technology and a minor in business.

utilizing advanced manufacturing techniques

Suppliers are

Interest in orthogonal midplane architecture is growing. Most backplane suppliers offer an orthogonal option, which can effectively shorten the length of signal traces between daughtercards, reducing distortion created by the backplane. Molex recently introduced an orthogonal direct connector where daughtercards mate orthogonally with each other, eliminating the midplane entirely. Without the midplane blocking cooling airflow, the thermal strategy of the system is

simplified, but issues of mechanical alignment and power distribution introduce new challenges. Defining a backplane connector by a published Gb/s bandwidth is a common measure used in the industry today, but it is increasingly becoming irrelevant. As system speeds rise, the optimization of every aspect in the channel, including PCB materials, plated thru-hole design, and trace routing, becomes essential. Many high-speed connectors can perform at 10+ Gb/s, if the link is sufficiently short and proper design rules have been applied, but noise margin that works in one circuit may result in unacceptable noise and crosstalk in another. A more relevant measure would be to quantify performance of a defined backplane link that is one meter in length and passes through two backplane connectors. More useful measures of a successful channel include levels of insertion/return loss, crosstalk, and noise. leading suppliers in the high-speed backplane connector market have created an extensive set of technical support tools to assist customer implementation of these advanced interfaces. Application parameters of each application are unique and can have significant influence on the ability of the channel to perform to specification. Connector suppliers offer advanced signal integrity support including design support, circuit

simulation, evaluation boards, and troubleshooting analysis, which is critical to smaller oEMs that may not have this level of internal resource. The connector industry has probably reached the practical limit of highspeed signal density of backplane connectors. Connector contact centerlines could be reduced, but limitations on routing density make this impractical unless surface mounting becomes more widely accepted. Consorzio Making di attivit e servizismaller could the compliant pin reduce per Associazioni the PTH, but noise attributed to e about dimprese concernsgruppi mechanical durability as well as aspect ratio become issues. Industry-leading manufacturers of high-speed backplane connectors are gearing up to address the emerging roadmap to higher speeds being driven by portable devices, including smartphones, tablets, and high definition video on demand. The bandwidth required to support these devices is pushing the speed of backplane connectors in routers and servers to higher levels. Industry standards organizations such as Ethernet, InfiniBand EDR, PCIe Gen3, and Fibre Channel are scrambling to create updated standards that have become the vehicle that delivers this bandwidth in a uniform and verifiable format. Faster is better across many categories that range from military to consumer products. Designers will find use

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for increased bandwidth, which has become the expectation in nextgeneration products. New connectors are in the pipeline that will continue to address higher speed and better noise INTERNATIONAL ELECTRONICS margin. SUPPLIERS

electronic and optical circuits do not change, but the economics of both are in constant flux

The physics of

New sponsors attracted to Fortronic Uk technology Forums for 2012

ortronic UK is pleased to announce that sponsorship places for their 2012 Forums are proving extremely popular and booking very quickly. Additional new sponsors already include Renasas, Avnet Abacus, Sunpower Technology, Universal Science, Agilent, TUVPS, Adeunis RF, Murata Power Solutions, Vicor, with more to follow. With sponsorship places limited to a maximum of 20 at each event we expect to be oversubscribed, so we strongly recommend that potential sponsors register their interest with us as early as possible. Forums scheduled for 2012 are: lED and lighting Design March 27 RF and Wireless Design June 26 Power and Power Management Oct 23 Auditorium / Exhibitor Area engineering community. Forecast for the topics we are covering, RF and Wireless, lED and lighting and Power and Power Management will achieve double digit growth during 2012, therefore as always it is how do you reach your target markets, efficiently and effectively? The unique format of the Fortronic Technology Forums was proven in 2011 to be one of the most cost effective way to get you and your products in front of a high quality engineering audience. This fact was fed back to us by our sponsors that have re booked for 2012 Delegates are attracted by the technology and market focus, technical content and format of the Forum and the fact that only approved engineers attend the event free of charge. Sponsors get the opportunity to present technical papers, run hands-on workshops and have application engineers and product

longer-term, the bandwidth roadmap appears to make reliable 25 Gb/s channels that extend 27 to 39 long the next target. It is unclear if traditional backplanes will evolve to orthogonal midplane architecture or if discrete cables plugging into the back of a backplane can deliver a more costeffective, high-speed interconnect Consorzio solution. Another approach would be di attivit e servizi to deliver increased bandwidth using per Associazioni multiple e gruppi dimprese via lower speed channels higher density backplane connectors. Another potential solution could be the use Pam 4 signaling to keep bandwidth limits within comfortable levels. After 25 Gb/s channels become mainstream, the outlook for copper becomes fuzzier. Channels that operate at 40 Gb/s per differential pair may be technically feasible, but they may not be the most cost-effective choice. The prices of components associated with fiber optic alternatives, including fiber, transceivers, and connectors, continue to drop. At the same time, advanced signal conditioning devices required to extend the reach of high-speed copper links adds cost and complexity. The physics of electronic and optical circuits do not change, but the economics of both are in constant flux. The following chart outlines some of the leading high-speed backplane connector products currently on the market. Stay tuned, as this list is expected to grow over the next few years.

attracted by the technology/market focus and technical content

managers available to discuss technical solutions and products to an audience that is genuinely interested and actively involved in the design of electronics. This all happens within the great surroundings and facilities of the Williams F1 Conference Centre where the informal atmosphere makes it more like a club than a technology conference. Sponsorship places are filling fast so to be sure of your place or for further information visit www.fortronicuk.com or contact: Chris osborn at [email protected]

Delegates are

The need to get products and new technologies in front of design engineers remains key to successful growth
All events take place at the Williams F1 Conference Centre near oxford In these difficult economic times marketing budgets can be first in-line for cutting. However the need to get products and new technologies in front of design engineers remains key to successful growth, in fact there is probably a greater need today for getting face to face with the

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assodel award 2012

by Marco Musiari Technical Director, Assodel
www.assodel.it

and IDEA meeting for industry executives which will take place on the same day: 31st May

2012 CALENDAR
Year semi passive connector e-Mech Visual ELECTRONICS power SUPPLIERS LeD Display Seoul Semicond./ Power-One Hitachi Disp. Mitsubishi Cree / Sharp Electric Osram IR
INTERNATIONAL

rF & Wireless

instrum.

2011 2010 2009 2008 2007

Infineon Linear Fairchild STM Infineon Freescale Microchip Renesas STM

Murata Murata Epcos AVX Vishay Murata Epcos Kemet Murata

FCI Molex Phoenix Harting Tyco FCI Molex FCI FCI

Panasonic Hongfa Tyco El. Finder Panasonic E. W. Hongfa Tyco El. Omron Tyco El.

NXP Cinterion Freescale

Yokogawa Agilent Tektronix

Toshiba Sharp Avago Osram Hitachi Display Sharp

Fairchild Ixys IR -

Analog Device Fluke Cypress Telit LeCroy Tektronix Fonte: Assodel

mongst Italian distributors it has now become a tradition to meet all together for the annual Gala Dinner. Usually more than four hundred people, almost all the players of the electronic components industry - distributors and manufacturers - meet together for some hours of fun and good food. Since 2003, the Gala Dinner tradition has been complemented by the Assodel Award (the Italian Distribution Award). The award is given annually to manufacturers in the electronics industry who are honoured for their excellent quality of both performance and collaboration. The award is presented in nine component categories: Active components Passive components (otherwise known as IP&E) Connectors Electromechanical devices (E-mech) lED Display RF & Wireless Power Instrumentation Within these nine categories the electronic community - distributors and end-customers - via an on-line survey, are requested to evaluate the manufacturers for the value of their products and for the following seven

2006 2005 2004 2003

* in 2010 the award for the Visual category was split into LED and Display

Assodels 10th annual awards key parameters:

Commercial support logistic support Technical support Communication Relationship quality Product quality and Distribution policies.

Consorzio di attivit e servizi per Associazioni e gruppi dimprese

The result of the on-line poll will be further considered by a panel of experts (a jury) either from Assodel or other associations or Universities that will make the final decision to whom each award will be made. This year, the Assodel Award will be held on 31st May in Milan and will follow the 1st IDEA Executive Conference - one full day of conferences aimed at executives in electronics manufacturing and the component supply chain.

last years Assodel Award winners show exactly the value of this recognition. We are very proud of this official recognition from our Italian partners, this confirms our business strategy to focus on customers and customer satisfaction, says Manuel Zarauza, Managing Director of Seoul Semiconductor, who accepted the 2011 award for the Visual/lED category. Mark Stanley, sales and marketing manager Hitachi DPG commented, Italy is a key European market for us and we see this award as a great achievement. We look forward to continuing the positive and profitable relationships we have with our Italian distributors. Its a particular honour that this award

was voted by a team of jurors from the electronic community, including end customers, distribution, customer supply operations and management. These are our most demanding critics and to be recognized as a best supplier means we are doing our job well and delivering on our promise to solve the most demanding RF challenges. was Mark Murphy, director of marketing, RF Power, NXP Semiconductors. Roberto Legnani, Infineon Technologies Senior Director Sales South Europe, said: The award is a rewarding recognition for the Infineon team. We like then to consider this prize as a concrete appreciation of our success in giving value to the distribution channel and, as a consequence, to their final customers.

an iMPorTanT awarD
As it has been said, over the years, this award has been perceived more and more as an important recognition given to the manufacturers from the distribution channel. The quotes below, coming from some

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IDEA
INTERNATIONAL ELECTRONICS SUPPLIERS

sToP Press!

Electronics Market: Europe at the crossroads

by Georg Steinberger Chairman of DMASS & FBDI
www.fbdi.de

Idea to hold a Major International Conference Can improved collaboration in the supply network encourage growth in European Electronic Components markets? to coincide with the 2012 Assodel Gala in Milan on the 31st May 12. the conference is aimed at senior management across the electronic components supply network and will provide an insight into the thinking of a range of industry leaders and Consorzio commentatorsservizi di attivit e on how improving collaboration per Associazioni encourages dimprese e gruppi growth. Held at the BancaIntesa San paolo in Milan the conference will start at 10:15 and close at 17:00 to be followed in the evening by the famous assodel Gala dinner and awards Ceremony Idea will be publicising a full agenda soon but, in the meantime, please make a note in your diary Milan, 31st May, IDEA Conference and Gala Dinner

nd the roller coaster that is the components market heads back down. Following a tumultuous first half of 2011 with almost 25% growth, the second half of the year plunged, ending at about 5% below 2010. This presents an interesting situation, since 2011 overall was the most successful year for, at least, the European components distribution market. In comparison with 2011, 2012 can only begin with a loss; current bookings do not match those of the terrific first half of 2011. At best 2012 will be a flat year. However distribution should make up ground in the overall market. The reasons why the cyclical trend is striking again and in full force are

numerous and in certain respects quite similar to 2009, in other respects completely different. First, the similarities: in 2009 the market collapsed following a positive cyclical trend in 2007 and up to the last quarter of 2008. The same is happening following 2011, although at a much higher market level and with much more dynamic growth and availability problems. In addition, the general economic condition is similar to 2009; the market is undoubtedly dominated by caution related to the euro crisis and a looming global economic downturn. This concerns both the internal market as well as prospects for European exports. Here end the similarities. It must be noted that the panic of late 2008, early 2009, is not repeating itself and there can be no discussion of a 2011 market crash, at best a slowdown. This is best exemplified by the capacity utilization of the semiconductor manufacturers: In Q1 2009, the quarter of horror for the industry, the capacity utilization of the chip manufacturers fell to 57%. Today it remains at 90%, with no signs of a major panic that this could dramatically change. And this even though inventory levels at customers in

In many ways 2012 could be interesting for the European electronics market - all signs point to a slowdown - cyclically and macro-economically (euro). Both will influence Europes future role in the global electronics market
key industries are up to 20 days higher than for half a year. Other differences: in 2009 a boom in full swing was stopped, and after a short time resorted again to panic at full speed, for nearly two years. Now the electronics upturn, which has partially anticipated growth (for fear of further allocation), is moderating itself. At that time, a wave of innovation in various markets piled up - renewable energy, consumer, and automotive. Today it can be stated for certain that saturation of devices and equipment exists in the system, which is reflected in production in Asia and in Europe. The production index in Western Europe is at its lowest level in years. What happens in the overall market, also affects distribution in Europe, although the segment-mix is significantly different. In recent years, distribution benefited from vigorous growth among customers who had not abandoned domestic production seeking lower costs in the Far East. The DTAM is growing faster owing to automotive, though above all due to industrial with all its sub segments, especially renewable energy. Unfortunately these two sectors are those currently with the highest inventory levels of primary products. This could draw itself out into 2012 and the DTAM could at least tread water. But in the long-term Europe is and remains, as a result of its shrinking share of the world

to ensure you are on the mailing list for this event just email to [email protected] and request further details to be sent to you.

quarter of horror for the industry, the capacity utilization of the chip manufacturers fell to 57%

In Q1 2009, the

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market, a distribution market with disproportionately high growth for distributors. The American market follows a similar model, though the market segments are completely different. Automotive and industrial play a much smaller role for distribution in America than in Europe. What must the European distribution market be prepared for in the near future? lets think of it as three trends: shift, availability and regulations. 1. A shift in market conditions has been taking place for several years - previously from Western Europe to Southern Europe, increasingly for over 10 years from Western and Northern Europe to Eastern Europe and now also from Southern Europe to Eastern Europe. Germany is apparently the exception. The German production base in electronics has remained relatively stable and does not appear as though it will experience a wave of migration. Today Germany and Austria represent about 50% of the European distribution market, in a few years this could be up to two-thirds. France, Italy, Spain, and Northern Europe are losing the most. In the latter case, one should count the Baltic States, which have become a mere production base for Sweden and Finland, in which case Northern Europe would be stable. This is a luxury Western and Southern European countries hardly enjoy. numbers) for which development on the part of component manufacturers is justifiable. This also has an effect on prices. Europe is a high-price market and thus always at risk of losing competitiveness on the innovation side among component procurement due to economic disadvantages. Distributors are subject to the same mechanisms and fight price and availability disadvantages during market upswings and price disadvantages during market declines. upcoming generation - the lack of skilled workers - affects many industries, but is especially poignant in engineering and the electronics industry. The most difficult jobs to fill are specialists such as application engineers. This is exacerbated by the lack of qualified young university graduates. Thankfully the industry is shrinking and productivity is climbing, say the sarcastic. In all seriousness, industry must think about from where the qualified workers of tomorrow will come. Two questions every company should answer for themselves are as follows: Are we supporting the workers of tomorrow enough in preparation for these professions? In general, are we offering the younger generations such as Generation Y and the Digital Natives an attractive work environment? This will decide not only the global competitiveness of Europes high-tech industry but also the future of the industry itself. Regardless of how the market actually develops in 2012, the challenges are not only internal to industry, but also societal. Development in the electronics industry merely reflects what is happening in society: Is there enough innovation to compete in the global development game? Though not necessarily in large companies, which develop and produce mostly in Shanghai, rather in small and medium-size enterprises, which are, not coincidentally, also distribution customers? From distributions point-of-view these are the true market leaders. Together it is possible to find avenues of future growth with the fewest possible bureaucratic hurdles.

INTERNATIONAL ELECTRONICS SUPPLIERS

uKs naTional elecTronics weeK:

call for PaPers

National Electronics Week UK will be held in Hall 2 of the NEC in Birmingham, England from 18th 19th April 2012. The organisers, New Events, have made a call for papers to industry for key topics and content for their two seminar theatres. The State of the art Seminars will cover topics in line with the exhibition profile - UK electronics - from design to final distribution. Event Director Claire Saunders comments Everything we do now which is not in our day to day routine needs to be evaluated on its level of requirement getting out of the office is not always easy so we want to Consorzio ensure that in addition to offering di attivit e servizi our visitors a wide variety of per and products, exhibitorsAssociazioni features e gruppi dimprese and demonstrations they also get to learn and hopefully find a new process or key bit of information that will help improve their working day. And now with National Electronics Week forming part of the UKs largest industry event in 2012 we want to continue to add more and more value to your trip to the NEC. Industry feedback is key to ensuring a successful seminar programme, the seminars need to be informative and technical and anyone interested in finding out more can email us at [email protected] National Electronics Week 2012 will be co-located with MACH, IFPex, Air-Tech, IPEE, Electrex, Drives and Controls and Plant and Asset Management - every show is interlinked and one badge gets access into every event. Visitors can pre-register free of charge a www.new-expo.co.uk/ ukregister

The distribution
market must be prepared for 3 trends: shift, availability and regulations

3. Regulations concern the general

bureaucracy in Europe, which does not make it easier for local companies to pursue their normal activities. Environmental, safety, and traceability regulations and laws render electronic products problematic goods with inserts, stickers, and side effects explanations, with a clear imbalance between costs and benefits. Derisively one might ask, what good is the complete transparency and safety of a product if it can no longer afford to be produced? Unfortunately these three trends, or megatrends, will accompany us in the coming years and to some extent determine our day-to-day business activities. Perhaps there is an additional trend, which has more influence at the corporate strategic level and is already making its presence known. It is the aging of the electronics industry. The growing problem among the

2. Availability means nothing other

than, that a region with lower global significance will not rank first when it comes to getting the latest technology products, even in future upswings. This can be a little different depending on customer size. What is lacking in Europe are large platforms (equipment in vast

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