THT Research - Weekly OEM/ODM Newsletter

The Latest News on Global IT Contract Manufacturing from www.THTresearch.com 

BRING ON THE ORDERS
 
Lenovo barebone servers
Enlight's orders from Lenovo for barebone servers have been increasing steadily over the past several years, but this year have made a major jump. Lenovo orders are partially behind Enlight's recent jump in server shipments to 12K/month.
 
ZTE contracts Evadin-Aiko for Brasil handset components
ZTE has contracted Evadin-Aiko's Manaus, Brazil factory to produce handset components, helping boost ZTE's after-sales service and brand in Brazil. ZTE supplies to Brazil companies Vivo and Brazil Telecom.
 
Huawei conquers Europe, one order at a time
Telecom operator KPN (Netherlands) has selected Huawei''s HSDPA datacard to offer to its subscribers for accessing 3G mobile services. KPN also contracts Huawei to build a nationwide 3G/2G Circuit Switch/Packet Switch core network.
 
ZTE wins Algeria contract
ZTE has won a contract from AT M Mobilis (Algeria) to supply optical network equipment including transmission equipment, power supply, optical network management software and SDH/PDH analysers.
 
Huawei and China building SE Asia telecom network...
Huawei has signed a deal with Cambodia's Ministry of Posts and Telecommunication to build an optical telecommunication network to enable internet communication among Cambodia, Thailand, Vietnam, Laos, Myanmar and China (part of the Greater Mekong Subregion Information Superhighway (GMS-IS) Plan. The Chinese government is supporting the project through loans and investment (since China has basically always viewed SE Asia a a natural extension of its empire...).
 
Yulon Nissan new telematics system development
Yulon Nissan (along with partners Sin Etke Technology and Freescale Semiconductor) have selected QNX Software Systems as their partner to develop and provide a next gen TOBE telematics system for Yulon Nissan Motors autos in Taiwan.
 
 
COMPANY NEWS AND INDUSTRY TRENDS
 
Gateway for sale, in whole or in parts, but at what price?
Gateway has rejected a bid from former eMachines CEO, Lap Shun Hui, to buy its retail operations for US$450M in cash. Hui said that he believes that Gateway has to separate from its retail line in order to become profitable, and that he may buy the entire company and split it in two himself. Gateway is no longer a top five PC company world-wide, although it remains relatively strong in the US, especially in the education market.
 
Taiwan companies expecting to benefit from Intel job cuts
Intel has recently decided to cut 10,500 jobs worldwide in order to reduce costs. Taiwan manufacturers and testing and packaging companies are expecting to see more Intel orders in the coming years as a result.
 
Powercom joining SMIC in solar cell business
Taiwan power supply maker Powercom Co (Taiwan) and SMIC (China) have agreed to co-manufacture and market solar cells beginning in 4Q06. Powercom has an excess of poly silicon, a key material in solar cells, and therefore decided to contact SMIC to help it enter the market. SMIC is also relative newcomer to the solar cell business.
 
Saifun, Spansion extend development cooperation
Flash memory supplier Spansion Inc. has extended its product development agreement with Saifun Semiconductors. Under the agreement Saifun provides engineering and design support for the development of 90-nm and 65-nm MirrorBit Quad products based on Spansion's patented MirrorBit technology that incorporates Saifun's proprietary, patented NROM IP.
 
Sun and Unisys file compensation suit on DRAM price fixing
Sun Microsystems Inc. and Unisys have filed suit against Hynix Semiconductor, Nanya, Mosel Vitelic, Winbond, Elpida, Mitsubishi, Micron Technology, Samsung, and Infineon, accusing the companies of DRAM price fixing and demanding compensation for damages.
 
It's a new trend! Bad batteries
Matsushita Electric has decided that it can't let Dell, Apple, and Sony get all the battery recall action... The company has recalled 6,000 batteries used in Panasonic NBs in Japan out of overheating concerns.
 
 
M & A
 
Alcatel to buy Nortel unit
Alcatel plans to acquire Nortel Networks' high-speed wireless equipment making assets for US$320M in cash. This unit makes 3G technology. For Nortel the deal will free it up to focus on 4G technologies and allow it to get rid of a money losing unit. For Alcatel, it's one more move in its plans to become one-stop shopping for telecoms, following its nearly completed acquisition of Lucent.
 
Flextronics to acquire Internatiol DisplayWOrks
Flextronics plans to acquire LCD and module maker International DisplayWorks Inc. (US) for US$300M in stock. Flextronics plans to integrate IDW with its Camera Module Group, TV tuner and WiFi and TFT module assembly operations.
 
 
PC on Wheels
 
Solar energy powered sun roofs
E-Ton Solar Tech-will team up with Yulon Motor Group and Acer Group to invent solar energy powered sunroofs. They're expected to be introduced to markets in 1Q07 and to Yulon Groups new car models soon after.