Weiner’s World

Estimated reading time: 11 minutes

Fan-out wafer level packaging (FO-WLP) continues to expand market penetration in a wide variety of formats developed by TSMC, Deca Technologies, ASE, STATS ChipPAC, and Fraunhofer.

It's still all about the car

Singapore’s nuTonomy became the first company to put autonomous cabs on the street. U.S. tech giants Uber and Google were expected to follow shortly thereafter. The initial tests involve a dozen vehicles in a 2.5-square mile zone with an observer on board and a restricted destination list. Can you imagine the number of lasers, radar devices, sensors, circuits, transmitters, and new electronic packages that will be required for vehicles in the very near future? Automotive electronics will exceed 9% of the approximately $1.5 trillion global electronic systems market.

Convoluted future for electric car batteries

Nissan Motor is reported to be in talks with Panasonic as well as overseas companies including Chinese firms over the possible sale of its 51% interest in Automotive Energy Supply Corporation, which makes lithium-ion batteries for electric vehicles. NEC owns the balance of the company. Nissan was said to be interested in selling the company because it would be cheaper to buy batteries for its electric vehicles from other makers.

Competition to supply batteries for electric vehicles is heating up due to expectations that a growing number of lower emission cars will be produced in the coming years. Tesla Motors, which currently procures batteries for its electric vehicles from Panasonic, is planning to boost its total vehicle production to 500,000 in 2018—two years earlier than its original target.

Nissan and Renault SA, under Carlos Ghosn, who heads both companies, have bet more heavily on electric cars than their mainstream competitors. In 2009 the two companies pledged to invest $4.43 billion to build models including the Nissan Leaf compact and as many as 500,000 batteries per year to power them.

Reuters reported in 2014 that Ghosn was preparing to cut battery production by AESC and instead use packs made by LG Chem.

Another example of the expanding trend of distributors providing full services for the shrinking footprints of equipment and chemical producers.

JUKI Automation Systems, a worldwide supplier of SMT placement systems and production solutions, and full service distributor ETEK Europe Ltd. bundle their competencies in order to strengthen their local presence in the markets of the United Kingdom and Ireland—and to further expand their common growth potentials. ETEK provides sales, maintenance, repair, and installation services for its principals. It provides customer training at its 14,000 square meter Technology Center in Prestwick, Scotland.

Mycronic AB will acquire 75% of Shenzhen Axxon Automation Co., Ltd. (Axxon) for approximately $51 million in cash from its own funds. Mycronic will obtain the balance of the shares over the next three years. Axxon develops, manufactures, and sells dispensing equipment for the electronics industry and is a leading supplier to the SMT market in China. China represents approximately 40% of the global dispensing market worth several hundred million dollars.

Materials matter

The Strategic Materials Conference (SMC), themed “Scaling Challenges: The Future of Materials and Packaging,” will be held at the Computer History Museum in Mountain View, California on September 20–21. This year’s event will focus on emerging materials and packaging technology trends across the entire microelectronics supply chain. Speakers will include Dr. John Hu, director of Advanced Technology, Nvidia; Ingrid Y. Shi, secretary general, Integrated Circuit Materials Industry Technology Innovative Alliance, China; and Dr. Anton DeVilliers, senior Technologist, Lithography, Tokyo Electron America.

The Silent Complaint

There have been many books written on marketing and niche marketing, sales, new product introduction, product promotion, customer satisfaction, after sales service, building a business.
But there have been fewer written on the silent complaints: No calls, no RFQs, no orders, or re-orders. Just a deafening silence. A void where vibrant business communications fail to materialize.

Months and years of planning, R&D, and work can go down the tubes due to the inaction or inappropriate action of one employee, often a senior manager of a business unit. This can often simply be a lack of response to an inquiry. There are a number of appropriate ways to deal with an inquiry. Respond directly by phone or email, refer the matter to another person to handle it—and advise the inquirer of your action, or, even say that you cannot provide the requested information. Whatever you choose to do, DO NOT just ignore it! That is rude and reflects badly upon your company, as well as upon you.

If one wished to be sure that the arrogant message of how unimportant the business prospect may be, repeat the silence when the inquirer follows up on his original unanswered query.
There is another way you can negate the work and accomplishments of your colleagues while lessening chances of success of your company. Make a promise or commitment, e.g., “I am away on a business trip, but will respond next Tuesday.” Then do nothing.

Did you say that I exaggerate? Do you think that this doesn’t happen in the real competitive world? Well, I must tell you that it does. I have personally experienced both of the above examples from the “Head of Operations” of a business unit of an otherwise reputable company.

Maybe this behavior is another unintended consequence of the digital age and the dehumanizing and depersonalization of conducting business.

What do you think?

In any event, my impression of the company in the aforementioned example is now one of unreliability.

Gene H. Weiner, author and publisher of this column, will talk about reshoring challenges and present six new items of interest to the electronic packaging supply chain at the September HDPUG (High Density Packaging User Group) meeting in Nashville, Tennessee.

On November 16 Weiner will present an IPC "Wisdom Wednesday" Webinar titled:  "A Vision for the Industry.” The free webinar will be an IPC Members ONLY presentation.

Gene Weiner is president of Weiner International Associates. To contact Gene, click here.

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