Molex Inc., one of the world's biggest makers of connectors for a variety of markets, including automotive, communications, consumer electronics, industrial, medical and networking equipment, has been absorbed by Koch Industries Inc., a conglomerate with limited presence in the industry. While Koch is keeping the current management of Molex in place, it is certain to implement changes intended to increase sales and boost profitability at the connector manufacturer. (See: Molex Will Change Under Koch But How Much?).

The greater impact of Koch's shift into electronics lies ahead. Prior to the Molex transaction, Koch had more than $110 billion in revenue and employed approximately 60,000 people. Molex alone will jack up Koch's payroll by more than 35,000 people. Will Koch wield the axe or concentrate on becoming a bigger player in electronics, using Molex to accelerate the consolidation of the $48 billion connector market. Within years, Molex's market share could rise above 10 percent from less than 8 percent today. This means some of today's smaller players in the interconnects, passives and electromechanical (IP&E) market could become acquisition targets for Koch and other major conglomerates.

The electronics industry is used to constant flux, though. One of the more wrenching changes taking place in the market and one that will affect a large swath of the supply chain is occurring in the communications market. Nokia Corp., once the world's biggest vendor of wireless handsets and still a big player, is getting out of the business after agreeing to sell its devices and services division to Microsoft. So, what will Nokia do once it closes the transaction as expected in the first quarter of 2014? The company plans to focus on the mobile infrastructure equipment market but considering its history of morphing from a wood pulp vendor to a rubber company, then TVs, radio and mobile phones, it shouldn't surprise anyone if Nokia - flush with cash from the Microsoft deal and IP licensing - targets other potentially lucrative fields in and outside of high tech. (See: Nokia: The Next Chapter Begins).

In other news of significance to the industry, Micron Inc. is vaulting to the No. 2 position in the embattled DRAM market following its acquisition of Elpida Memory Inc. The transaction also helped make Micron the world's fourth largest semiconductor company by revenue and will contribute towards what the chipmaker hopes would be the end of the DRAM arms race. (See: Micron Stabilizes, Predicts end of DRAM 'Arms' Race).

It's not just the big guys that are driving news in the electronics supply chain. Smaller companies are also in the spotlight. Many components distribution are reorganizing operations to better understand and respond to customers' needs. PEI-Genesis, for example, is making expansion plans for China after staying on the sideline initially but as EPS managing editor Barbara Jorgensen points out in a recent blog, there isn't a perfect time to enter the Chinese market. Each company must go at its own pace, Barb noted. (See: PEI-Genesis Prepares for Expansion into China and It's Never Too Late For China).

At the components level, some suppliers continue to emphasize the importance of the Western market by investing more in the region despite ongoing shifts in manufacturing to lower cost Asia Pacific and Eastern Europe. Ametherm, a supplier of thermistors and other components for circuit protection, believes so much in the American market that it doubled the size of its production facility in Nevada, as Gina Roos, EPS executive editor notes in a report. (See: Ametherm Thrives in Nevada).

Ken Bradley, a veteran of the electronics market and one of my favorite writers on industry issues, kept the theme of change alive in a blog posted this week. Ken, who's seen and experienced firsthand what happens when enterprises fail to promptly respond to change, focused on Agilent Technologies' recent decision to split itself into two enterprises. The company had done this before but rather than wait for its leadership in two key segments to be eroded, it decided to lead the change it sees coming. Agilent's action, according to Ken, is a good example of how companies can anticipate and respond to the unknown. (See: Becoming & Staying a Leader: the Agilent Way).