Readers Weigh in on Xilinx-Flex Suit

Many readers have weighed in about the Xilinx-Flextronics suit (See: Xilinx Sues Flextronics for Alleged Fraudulent Chip Resale and The Multiple Dangers of Component Resale) and have made a number of good points I’d like to share here. First, it does not appear that the channel, authorized or independent,  was involved in the transaction. Although…

Jabil to Sell Aftermarket Unit for $725M

Jabil Circuit Inc. (NYSE: JBL) has announced plans to sell its aftermarket support business to iQor Holdings Inc. for $725 million as the electronics manufacturing services provider intensifies its multiyear reorganization and cost-reduction programs. The EMS provider said the decision to sell the aftermarket services (AMS) division is in furtherance of plans to focus primarily…

Xilinx Sues Flextronics for Alleged Fraudulent Chip Resale

Xilinx Inc. has filed a lawsuit in a California court against Flextronics International Ltd., alleging the contract manufacturer resold chips it purchased from the semiconductor vendor at a premium to other customers. The FPGA manufacturer also charged Flextronics with dealing in “gray market and counterfeit” Xilinx products, according to the filing with the Superior Court…

The Ugly Truth About Counterfeiting

Nothing has polarized the supply chain like counterfeiting. It has pitted segments of the industry against one another (distributors versus brokers) and more recently divided the channel into two camps: Pro-DNA and anti-DNA. Both of these debates center around proposed solutions to the counterfeit problem in the channel and both have spurred action. But these…

Jabil Buys SGI Plant to Secure Contract

Jabil Circuit Inc. has agreed to purchase Silicon Graphics International Corp.’s main manufacturing facility in the United States in addition to certain other assets as the two companies seal their previously announced outsourced production deal. Under the terms of the engagement, contract manufacturer Jabil will become the primary provider of outsourced manufacturing and supply chain…

Forget Re-shoring, China is still it

It’s easy to find evidence to convince anyone China will in future play a diminished role in the electronics manufacturing market. Don’t believe the hype. True, aside from regular supply chain challenges arising from its location and distance from main Western markets and other economic, geo-political and logistics issues, the country’s edge in production has…

Shutdown Has Little Impact on Manufacturing

The recent shutdown by the U.S. government did not appear to have an effect on domestic manufacturing activity, according to the nation’s supply executives. A leading indicator of economic growth, the Institute for Supply Management’s Purchasing Manager’s Index (PMI), increased for the fifth straight month to reach 56.4 percent.  A PMI reading above 50 percent…

Flextronics Closes Riwisa Acquisition

Flextronics (FLEX) today announced that it has completed its previously announced acquisition of RIWISA AG. As a result of the transaction, Flextronics has acquired RIWISA’s state-of–the-art manufacturing facilities located in Hagglingen, Switzerland and highly-experienced employees in medical, consumer packaging and industrial products. With the close of the acquisition, Flextronics broadens its precision injection molding and…

Flextronics Wins HP Brazil Contract

Flextronics International Ltd. said it has signed a contract with Hewlett-Packard Co. to provide design chain, manufacturing and other supply chain management services in Brazil to support the company’s printing and personal systems business in the South American country. Under the terms of the agreement, Flextronics is expected to offer a wide range of services…

Flextronics Net Drops on Higher Costs

Flextronics International Ltd. reported profits for the fiscal 2014 second quarter shrank as the company faced higher operating costs and on a small decline in gross profit margins. The company said it believes cost-cutting measures introduced earlier in the year would help it improve the total operating structure. Net income at the top-tier electronics manufacturing…