As a leader in certified electronics component distribution and a supply chain partner to thousands of customers around the world, Sensible Micro always stays on top of the latest news and events in our industry. Here are some recent stories that caught our eye.
Alpha Technics Acquired by TE Connectivity
California-based Alpha Technics, designer and manufacturer of medical temperature measurement solutions that reported $20 million in sales in 2018, is now controlled by TE Connectivity.
“The acquisition of Alpha Technics is part of our well-established strategy to expand our leadership position in sensor applications,” said John Mitchell, Senior Vice President and General Manager of TE sensors business, in a press release.
“This transaction further establishes TE as a sensor technology leader for the medical market.” TE Connectivity is a $14 billion global technology and manufacturing leader with over 75 years experience that is dedicated to “creating a safer, sustainable, productive and connected future “
New Business Continuity Institute Report Reveals Key Supply Chain Disruption Trends
First, the good news: the number of organizations experiencing a supply chain disruption has dropped to 55% in 2018 compared to over 70% in 2010, and Tier 1 disruptions decreased from 60% to 52%. Now, the bad news: Tier 3 disruptions rose from 8.5% to 11%, and although Tier 1 did witness a decrease, it remains the most common source of disruption. “There is clearly still work to be done to ensure better business continuity arrangements are in place within the most visible part of the supply chain, Tier 1,” states the report’s authors. They attribute the disruptions to:
- Unplanned IT or telecommunications outages
- Adverse weather
- Transport network disruptionSEM
- Outsourcer failure
- Loss of talent
The Business Continuity Report also notes that nearly half of companies are using ISO 22301 to confirm business continuity plans are in place, and that checks to ensure a supplier is certified have increased from 12% in 2010 to over 50% in 2018. Lastly, the authors warn that companies need to stay aware of emerging threats, such as cyberattacks and data breaches.
Chip Manufacturing Sales Reach an All-Time High
Sales of manufacturing equipment increased by almost 15% in 2018 to an all-time high of nearly $65 billion, up from $57 billion in 2017, according to Semiconductor Equipment and Materials International (SEMI). Korea claimed the largest market, followed by China and Taiwan. In addition, annual spending rates increased for China, Japan, Rest of World (primarily Southeast Asia), Europe, and North America.
Intel Adds 300 New Jobs to its New Mexico Manufacturing Plant
Intel, New Mexico’s largest manufacturing company with more than $16 billion invested in the state, recently announced plans to add more than 300 employees to its Rio Rancho manufacturing plant in Sandoval County. The move comes as the tech giant continues to grow beyond traditional PC and server business into more data-rich markets.
The news was first announced in a New Mexico Economic Development Department press release.
"The Rio Rancho site continues to be an important part of Intel’s global manufacturing network, and is manufacturing semiconductor products that are critical to Intel’s ability to secure, power, and connect billions of devices and the infrastructure of the smart, connected world,” said Intel Rio Rancho Site Manager Katie Prouty.
The Rio Rancho facility opened in 1980, and currently employs about 1,200 technicians, production managers, and engineers.
Infineon Acquires Cypress Semiconductor in $10 Billion Deal
Cypress Semiconductor, a manufacturer of memory, sensor, and internet of things chips which was founded in 1982, will become part of Infineon by late 2019 or early 2020 in a deal that values the company at $10 billion. The transaction is the largest in Infineon’s history and continues the trend of chip industry consolidation, in which a number of Silicon Valley companies such as Altera and NXP have been absorbed into another industry giant.
According to Infineon, the purchase will position it as the number one supplier to the automotive chip segment. But that’s not all. “The planned acquisition of Cypress is a landmark step in Infineon’s strategic development,” said Reinhard Ploss, chief executive officer of the Munich-based company, in a statement announcing the Cypress acquisition. “With this transaction, we will be able to offer our customers the most comprehensive portfolio for linking the real with the digital world. This will open additional growth potential in the automotive, industrial and Internet of Things sectors. This transaction also makes our business model even more resilient.”
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