WPG/Yosun merger may challenge Arrow as world’s No. 1 distributor

EL SEGUNDO, USA: The approval of the board of directors for the merger of WPG Holdings Ltd and Yosun Industrial Corp. sets the stage for the creation of what could become the world’s largest electronics distributor, according to iSuppli Corp.

“With the merger of these two Taiwanese firms, not only will WPG continue to strengthen its leadership role in Asia, but it now also has the opportunity to replace Arrow Electronics Inc. as the world’s largest electronics component distributor,” said Horse Liu, manager for China Research at iSuppli.

The total revenue of the combined WPG/Yosun entity was approximately $9.6 billion in 2009, compared to Arrow’s electronic component sales of approximately $9.8 billion. Another leading distributor, Avnet Inc., generated $9.2 billion in the electronics component distribution market.

“WPG’s goal is to become a stronger competitor and to expand market share,” Liu added. “iSuppli believes this will help the merged company with attaining greater cooperation and promoting reforms—which will be the principal trends in the electronics components distribution industry.”

WPG will not implement an aggressive integration strategy following this merger, and instead will take a more limited approach. In the past, WPG achieved its overall strategic objectives but has encountered challenges in achieving synergy when attempting to integrate acquired companies during the past 10 years.

The table presents the analysis of synergies and strategic benefits achieved by WPG.Source: iSuppli, April 2010

In order to maintain customer and supplier resources, WPG’s sub-companies have been operating independently to avoid the challenge of integrating their distinct customer lists, business models and corporate cultures. Despite the differences, WPG matched distributors’ long-term development strategies while pursuing the continuous sales growth at a stable level of profit margin.

Mature market presents new challenges
China’s semiconductor market is become more mature—which means that growth is slowing. At present, gross profit margins for major distributors in the country are between 2 percent and 7 percent.

Given the difficulty on the part of distributors to generate high growth solely by using their own capital resources, mergers and acquisitions instead have become the strategy of choice for leading distributors to grow quickly. And because they are now encountering developmental choke points, some distributors have become more amenable to accepting the otherwise difficult challenge of making acquisitions.

WPG will continue its merger and acquisition strategy within the China’s electronics component distribution market. However, the company will need to diversify its business models because its basic order fulfillment services are under threat from suppliers’ direct sales forces.

Molex retains counsel to investigate unauthorized activities in Japan

LISLE, USA: Molex Inc., a global electronic components company, has learned that an individual working in Molex Japan’s finance group obtained unauthorized loans from third party lenders in Molex Japan’s name which we believe to be in the range of $175 million and to have been used to trade on margin in unauthorized accounts in Molex Japan’s name.

We also believe that the individual has misappropriated cash from Molex Japan which resulted in a loss in the range of $15 million. The individual has admitted to forging documentation in arranging the transactions.

We have retained outside legal counsel, and they are retaining forensic accountants, to investigate the matter and the extent of our liability, if any, for the unauthorized loans.

VISLINK launches NewSwift LT: a competitive antenna for high speed data and growing SNG markets

UK: VISLINK News & Entertainment has chosen NAB for the first viewing of its latest vehicle-mounted satellite antenna, named NewSwift LT. This is a vehicle-mounted satellite uplink with an innovative high performance 1.2 metre aluminium reflector.

NewSwift LT complements the company's industry leading NewSwift range of high performance vehicle mounted antennas. It has the same mountings to attach it to the vehicle, a pod housing a redundant pair of up to 200 watt amplifiers and uses the same antenna controller. Like the traditional NewSwift CF range, the new antenna also offers the advantages of a fully integrated RF system and is integrated with the VISLINK 5000 Series electronic sub systems.

VISLINK has designed this new antenna with data and mobile internet applications in mind. It is intended for applications which require high speed data connections at a lower cost, but which also require a higher quality reflector than the standard VSAT antennas due to the superior sidelobe and x-polar performances required at these higher TX EIRP levels.

The NewSwift LT is designed for operation in Ku band to meet the requirements of broadcasters and mobile or temporary internet applications worldwide.

"NewSwift LT benefits from the very latest precision vacuum formed aluminium reflector techniques" commented Ashley Dove, Director of Product Marketing at VISLINK "Providing an alternative to carbon fibre construction, VISLINK has been able to deliver a complementary antenna with the same finely crafted reflective surfaces, in aluminium, with a lower manufacturing cost and only a small trade off in weight."

Verbatim to deliver a better user experience in commercial and domestic LED lighting

EGHAM, UK: Verbatim, a Mitsubishi Chemical company, will use advanced materials technology to deliver commercial and domestic LED lighting that gives users more control over quality of light. The company is expecting to market lamps with a near-daylight colour rendering index (CRI) of 98 during 2011.

Verbatim LED lighting, sometimes known as solid state lighting, will be available in wholesale and retail outlets throughout Europe by the end of 2010. Initially, the company plans to sell lamps with many of the most common shapes and base fittings including A-lamps, candle lamps and directional MR16s, with a choice of E14, E27, GU5. and GU10 bases to follow later. The products will be suitable for direct replacement of incandescent and halogen lamps.

Typical energy savings will be 80 percent, compared with conventional lighting, and the products will have much longer life of around 35,000 hours, equivalent to 15 years at 10 hours per day, depending on operating conditions.

The first family of lamps will be based on a blue light-emitting chip LED technology. They will be competitively priced, available in cool and warm white, and have a typical colour rendering index (CRI) similar to that of other products currently in the market.

The next generation of lamps, planned for 2011, will use a violet light emitting chip with red, green and blue phosphors. These products, also in warm white, will offer further improvements in CRI with a typical average value of 98. This is very close to natural light. Verbatim's parent company, Mitsubishi Chemical, manufactures both phosphors and LED chips and has decades of experience in these technologies.

The company is working with partners to develop complete lighting solutions that include fixtures and electronic control of both brightness and colour rendering through simple, user-friendly interfaces.

Gary Milner, president, Verbatim EUMEA: "However energy-conscious they are, people will not buy lighting that compromises the quality of their work or home environments. Our goal is to provide competitive low energy lighting that is indistinguishable from incandescent lighting in terms of colour rendering, where that is the consumer preference. We'll also develop a family of tunable products that make lighting adaptable to suit the mood that users want to create."

Fuji America to include Aegis Software with FUJI Flexa

IPC/Apex 2010, LAS VEGAS, USA: Aegis Software announced an industry-first OEM bundling agreement with Fuji America Corp., a leading supplier of high-quality, automated assembly equipment for surface mount applications.

Under the agreement, Fuji America will include Aegis NPI software for BOM, CAD, Gerber and even scanned board data conversion with each license of Fuji's world-class line level management and optimization software called Fuji Flexa.

Chip King, Assistant Engineering Manager of Fuji America, said: "FUJI America has made Flexa line management and optimization software and Aegis' proven NPI system a turn-key solution for our customers. Each Flexa installation will be accompanied by Aegis' NPI software.

"This package delivers our customers the benefits of the industry's most proven tool for data preparation. They will be prepared for any BOM or CAD data they receive, and have the power to quickly and perfectly prepare it for Flexa via direct API integration between the systems. Packaging Aegis NPI technology in this way also gives our customers the value of a future path to a larger solution. They can build on any Flexa installation to the factory-wide Aegis Manufacturing Operations System should they wish in the future."

"Aegis is proud to become an integral part of the FUJI software offering via this partnership. We were the first to integrate with the Flexa API several years ago, and now our widely deployed technology is becoming an integral part of their Flexa offering." commented, Jason Spera, Aegis CEO.

"FUJI America has taken a very important step for their customers. By combining the value of the most popular NPI software on the market as a standard component of their own line management software, they give the customer a truly best-in-class solution in a simplified, cost effective way. We are pleased to deliver Aegis NPI technologies through our partner Fuji America."

SANYO North America Corp. announces new distribution arrangement for consumer batteries

CHATSWORTH, USA: SANYO North America Corp. (SANYO) announced the appointment of ToCAD America Inc. (ToCAD) as the master distributor for SANYO batteries in the US, effective April 1, 2010.

SANYO has selected ToCAD to provide fulfillment and distribution for its expanding eneloop and SANYO alkaline consumer battery business. The SANYO eneloop is a Ni-MH rechargeable battery that combines the features of an alkaline battery with the benefits of a rechargeable battery.

SANYO will continue the research and development of industry leading eneloop battery technology and will handle end-user support through the SANYO Customer Support Department in Chatsworth, CA. ToCAD distributes diverse consumer electronics product lines to dealers.

“We are delighted to have added ToCAD as a partner for smooth operational efficiency and support for our battery business,” said Andrew Nelkin, President, Consumer Solutions Division. “This will help us expand our consumer battery business, continue to enhance service to our customers, and allow us to continue to provide new and exciting battery solutions.”

Alpha and Omega Semiconductor offers significant reductions in RDS(ON) for MOSFETs in DFN3.3x3.3 package

SUNNYVALE, USA: Alpha and Omega Semiconductor (AOS) has released two new power MOSFETs that combine the latest advances in silicon process and high density packaging technologies.

The AON7428 and AON7405 enable design engineers to achieve very high current density load switching solutions in space constrained applications including battery packs, notebook computers and redundant power supplies.

The AON7428 is a 2.3mΩ N-channel, and the AON7405 is a 5.1mΩ P-channel MOSFET. Developed with AOS’s G4 30V Trench technology, and combined with a Power DFN3.3x3.3 package, these devices offer among the lowest RDS(ON) in their class.

“We are pushing the boundaries of miniaturization with these new Power MOSFETs,” said David Grey, Director of Product Marketing at AOS. “This level of performance is usually associated with packages three times this size and gives designers more options when PCB space is limited.”

Both devices are housed in the DFN3.3x3.3 package and are available immediately in production quantities. The unit price of 1,000 pieces is as follows: AON7428 at $0.85, and AON7405 at $0.88.