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What's Happening in High-Tech Supply Chains

Staff -- Purchasing, 10/20/2005

  • Semiconductor sales are building. Global sales of semiconductors in August increased 3.2% from July, according to the Semiconductor Industry Association. August 2005 sales were also up 1.7% from August 2004. Year-to-date chip revenue through August was up 5.8% from 2004.
  • Plastic tubing extruder Zeus of Orangeburg, S.C., is spending $8.5 million to build a factory in Ireland to expand its supply for medical, electronics and aerospace firms operating inside the European Union.
  • South Carolina-based capacitor maker Kemet believes it is the first to market new lead-free components that are compliant with imminent Restriction of Hazardous Substances (RoHS) directives that eliminate lead from the manufacture of electronic components. Standard tin/lead versions of tantalum-based capacitors will remain available.
  • Supply disruptions of epitaxial films that are deposited on silicon substrates used to make semiconductors probably won't be resolved until the first quarter of 2006, according to market insiders. The shortage of epitaxial wafers is due to hurricane damage at the Air Products & Chemicals hydrogen facility in New Orleans.
  • Sales of data storage-related products (disk systems, components, tape, services and software) should rise 7% this year to $65 billion, forecasts Standard & Poor's. The investment researcher says that "these numbers look particularly impressive in the face of lower overall spending for technology-related goods and services this year."
  • Sales of Bluetooth-enabled products will more than double over the next four years. About 316 million Bluetooth equipped products will ship in 2005. By 2009 that will rise to 866 million, says researcher In-Stat. Bluetooth technology allows short-range wireless communications between products such as cell phones, notebook PCs, stereo headsets, automobiles and portable digital music players.
  • Changes in product development for plastic resins, foams and parts are being forced onto the North American petrochemicals industry because of the European Union recycling law, called the Waste Electrical and Electronic Equipment directive, which requires manufacturers to have systems in place to take back electronic products when they're ready to be thrown out.

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