The chip industry is slowly emerging from its worst downturn since 2001, according to the latest reports from the Semiconductor Industry Association.
The San Jose-based trade group expects global chips sales to grow about 10% in 2010 to $424 billion and by 8% to $262 billion in 2011.
That’s after a pretty dismal 2009, when worldwide chip sales are expected to be $220 billion, down 12% from a year earlier, a recent association report showed.
“The new forecast is brighter than our earlier projections, reflecting an improving global economy,” said the association’s former president George Scalise.
Scalise recently announced his retirement and stepped down from the top post. The association’s new president is John Daane, who is chief executive of San Jose-based Altera Corp.
The key to improving chip sales lies with demand for computer electronics, the association said.
“Sales of key demand drivers—including PCs and cell phones, which together account for about 60% of semiconductor demand—have been stronger than previously predicted,” Scalise said. “Sales are running well ahead of the worst-case scenarios projected early in the year.
DDi buys Coretec
Anaheim’s DDi Corp., a contract maker of printed circuit boards, is buying Coretec Inc., a smaller Canadian rival DDi had been eyeing for some time.
DDi is set to pay $24 million in cash and debt for Toronto-based Coretec.
The company initially went after Coretec with a much lower, unsolicited bid.
In October, DDi offered about $3.4 million for Coretec, which is publicly traded on the Toronto Stock Exchange.
DDi also proposed to assume or refinance around $19 million of Coretec’s debt as part of the deal.
Last month, Coretec set up a special committee composed of board members to review DDi’s proposal.
DDi said it will combine Coretec’s factories in the Toronto area with its own operations there. The companies also are set to combine their sales and administrative functions.
The deal gives DDi two additional U.S. sites that were Coretec’s: one in Littleton, Colo., and one in Cuyahoga Falls, Ohio.
Both DDi and Coretec get customers by quickly turning around circuit boards, especially on prototypes.
Most of the company’s orders are completed in less than 10 days.
Eco-Friendly Bags
Anaheim’s Mobile Edge LLC, which makes hip laptop bags, backpacks and accessories, recently jumped on the eco-friendly train.
The company announced a “green” lineup of messenger bags and totes that are made out of natural cotton canvas and recycled plastic fittings.
Mobile Edge said the collection is roughly 80% biodegradable.
In addition to the laptop messenger bags, Mobile Edge also has an eco-friendly collection of totes designed for women.
One is specifically designed for Susan G. Komen for the Cure, a breast cancer nonprofit.
The tote bags go for around $80 and the messenger bags sell for $50.
Mobile Edge’s move into green territory comes two years after its top competitor, Anaheim’s Targus Inc., launched an eco-friendly line.
In 2007, Targus, which sells laptop computer cases and accessories, launched a lineup of bags that are polyvinyl chloride-free.
Polyvinyl chloride, a type of plastic, is harmful to the environment because it releases chemicals into the air over time.
Local.com Splits
Irvine’s Local.com Corp., which runs an online search engine for finding local businesses and products, recently reorganized its upper ranks.
The company is dividing itself into three business units, dubbed “owned and operated,” “network” and “sales and advertiser services.”
“Local.com has three distinct customer types, consisting of over 20 million monthly users, over 80 network partners and more than 20,000 small business subscribers,” said Chief Executive Heath Clarke.
Two newly created general manager positions will report to Operations Chief Bruce Crair and will manage the business units.
The company also announced its intentions to make small acquisitions to bolster each of its three units.
Peter Hutto, Local.com’s senior vice president of business development and sales, was promoted to vice president of corporate development and will report directly to Clarke.
Hutto is set to head Local.com’s acquisition efforts.
The company hired Richard Szatkowski as general manager of both the network and sales and advertiser services business units.
Szatkowski most recently was vice president of advertising and business development at Irvine’s Autobytel Inc., which does online auto marketing.
Local.com’ site allows users to search for businesses in their areas and for advertisers to target them.
It gets revenue from a few sources, including sponsored listings and advertising.
