OTHER ELECTRONICS & NANOTECHNOLOGY

UPDATE

 

June 2011

 

McIlvaine Company

www.mcilvainecompany.com

 

TABLE OF CONTENTS

 

Next Generation Data developing Data Halls

Physicists Go Deep for Scientific Breakthroughs

Corning Opens Design Hub in Taiwan

Sono-Tek Expands Customer Service Globally

ROFIN-SINAR has New Production Capacities in Finland

MEMS Materials at Fraunhofer

Samsung India Electronics to Build Fab

Telefunken Buys Renesas Electronics's Fab

HWI Global Builds Cleanroom for Powerex

Linde Opens Facility in South Korea

Nanometrics Opens Singapore Center

STM Ramps MEMS Production

Air Products’ Expands Its Production Facility

Jabil Investing in Chinese Facility

 

 

 

Next Generation Data developing Data Halls

Next Generation Data has announced it will build the new data halls at NGD Europe, the data centre it opened near Newport last year.

 

The expansion project is being funded by shareholders and is due for completion by the end of the year.

 

It follows the signing earlier this year of tenancy agreements worth more than £20m with a number of blue-chip clients, including a major US- headquartered Fortune 100 technology corporate.

 

The company also recently secured £5m of debt finance from investors including Lombard and Finance Wales.

 

“Our initial custom-built halls are now fully occupied on long-term contracts and we have a very strong customer pipeline, both in terms of new customers and repeat business from our existing client base,” said Nick Razey, chief executive of Next Generation Data.

 

“The main driver for building the additional data hall capacity this year is to meet demand from large organizations based in Europe and, increasingly, North America, where our targeted US sales strategy is clearly starting to pay off handsomely.

 

“We are able to offer them the highly secure world-class facilities they require, located well away from the space, power and security issues associated with the London area.”

 

NGD Europe has been built at the former Hynix semiconductor site at Coedkernew, west of Newport, which never became operational as a semiconductor facility.

 

It opened in early 2010 with BT as one of its first anchor tenants, and is the largest data center in Europe, offering managed hosting and cloud computing providers accommodation in a state-of-the-art secure tier three environment.

 

It features an on-site sub-station providing a high capacity resilient power supply – the first in Europe to be sourced from 100% renewable energy – and multiple high-speed, low- latency fiber connections.

 

The facility comprises three phases of 140,000 sq. ft., adding up to a total capacity of

420,000 sq. ft.

 

The five principal contracts signed thus far account for approximately one third of the first phase, with a further third currently in discussion with potential occupiers.

 

The data center has the benefit of contracted power available to site, with further power available.

 

With the power and shell in place and much of the infrastructure already in situ, data halls can be constructed in as little as 22 weeks from exchange of contracts.

 

Mark Larard, director of the Data Centre Advisory Group for global real estate advisers Jones Lang LaSalle, said: “Next Generation Data’s growing success demonstrates there is significant pent up demand for data centers outside the traditional locations in London and the south east.

 

“The company continues to challenge industry expectations and offers a serious alternative for organizations searching for an excellent deal on security, power and cost-effective space.”

 

Newport West AM Rosemary Butler described the news of the latest investment as “a massive vote of confidence in the area”.

 

She added: “This new contract will be good news for local sub-contractors who’ll be needed to help with the expansion.

 

“It also sends out a very positive message to companies all over the world that Newport is now establishing itself as an ideal base for high-tech operations such as this.

 

“We have the space, we have the infrastructure and we can provide an attractive alternative to rival sites nearer London.”

 

Physicists Go Deep for Scientific Breakthroughs

Sanford Underground Laboratory at Homestake will look for dark matter.  Construction on the laboratory for the LUX experiment will begin soon.

 

The Sanford underground laboratory is the eerily impressive cavern almost 5,000 feet below the surface of the former Homestake gold mine is where nuclear chemist Ray Davis conducted three decades of research into sub-atomic particles called neutrinos that changed the course of particle physics and won a Nobel Prize.

 

That was years ago, when Homestake was still a working mine and officials allowed and even helped Davis with his research.

 

Now the mine is closed, and the once-abandoned Davis cavity, an environment shielded from cosmic radiation that can interfere with delicate scientific study, is again becoming a place of cutting-edge science, this time through the Sanford Underground Science and Engineering Laboratory at Homestake.

 

Heise is the science liaison director for Sanford. During a media tour, he stood in the Davis cavity and talked about his admiration for Davis and the potential scientific breakthroughs to come at the 4,850-foot level, where early science is proceeding in a newly constructed laboratory and construction crews are working to build even larger labs.

 

One of those labs will be in the Davis cavity, which has been enlarged and will soon be outfitted as a full-fledged laboratory as part of an $8 million construction contract. The lab will use a device called a Large Underground Xenon (LUX) detector for research into dark matter, a mysterious substance believed to make up almost a quarter of the universe.

 

"This laboratory will be a key component in the advancement of human knowledge," Heise said. "They're looking for 23 percent of the universe that we haven't explored yet. It's a very, very important experiment."

 

It is not without challenges, however. Even though federal and state governments, along with private philanthropist T. Denny Sanford, have committed more than $200 million to the laboratory project, it has struggled to find a solid financial path to the future.

 

The laboratory was initially seen as a National Science Foundation project, but the foundation's board backed out of further funding late last year. The federal Department of Energy has picked up funding beginning with the new federal fiscal year in October, but at an amount that is unclear.

 

The last of state money authorized for Sanford runs out at the end of the month. The NSF is providing funding through until Oct. 1, when the new federal fiscal years begins. And Sanford is in the 2012 DOE budget.

 

What happens next depends in large part on a DOE assessment likely to determine how the agency wants to proceed with the laboratory.

 

Meanwhile, Heise and others press on with development at the 4,850 feet level, with earlier expectations for an even deeper lab at 7,400 feet uncertain.

 

Some science may demand the deeper areas with even more protection from cosmic radiation. But there is plenty of science to be done at 4,850 feet, and it doesn't take a great deal of money at this point, Heise said.

"They are able to do a lot of science here with a little money," he said.

 

"We're just going full speed ahead with the resources we have and do as much science as we can."

 

More than a half-mile away from what is called the Davis Campus -- including the Davis cavity where the LUX will be and the larger, recently excavated transition cavity that will have its own laboratory -- a small lab already is in operation.

 

Right now, it's called the Majorana Clean Room, which is named after an Italian physicist, Ettore Majorana. And it is an especially cleanroom. It has to be for the research going on inside.

 

The bright white walls and gleaming windows look incongruous in the shell of a small, drab cavity created by Homestake workers years ago as an electrical shop. Workers wearing white lab suits, hoods, masks and sunglasses -- for the bright light needed in the laboratory -- were busy treating already highly pure copper with acid solutions to improve its purity.

 

That copper will be used in the experiments at Majorana, to be located in the new cavern near the Davis cavity. Work in the Majorana experiment there could help determine the mass of neutrinos, while the adjoining Davis looks into dark matter.

 

But the process of purifying the copper is itself science that is producing results, said Eric Hoppe, a chemist from Pacific Northwest National Laboratory in Richland, Wash., who is working on Majorana.

 

Private electronics specialists are interested in the Majorana work for "possible spinoffs," Hoppe said.

 

Those who question the practical benefits of the research may be forgetting history, he said.

 

"I guess you could have asked those same questions 200 or 300 years ago about whether electricity was important," Hoppe said.

 

Work in physics and a better understanding of energy could create practical applications similar to electricity, he said.

 

"Perhaps in the future your cell phone might actually get its energy from what happens to be all around you," Hoppe said.

 

Work on the Davis Campus picks up next week, as crews for Ainsworth-Benning Construction of Spearfish begin building the laboratories and support facilities under an $8 million contract.

 

The work is scheduled to be done early next year, allowing science at the 4,850-foot level to move into areas that would make Ray Davis proud.

 

"It's tremendously exciting to think of being back in here where he did all that hard work," Heise said. "This is really hallowed ground for a lot of us."

 

Corning Opens Design Hub in Taiwan

Corning Inc. has announced the opening of its new technology center located at the Neihu Technology Park in Taipe, Taiwan. The Corning Advanced Technology Center will serve as the company's customer-focused applications engineering and design hub in Asia.

 

Equipped with outstanding glass technology capabilities and staffed with talented, experienced personnel, the center will provide product design and development support for the fast-paced consumer electronics industry. Technical experts will also focus on development of emerging applications where Corning glass technologies can play a critical role.

 

"Extensive resources, such as glass characterization, product analysis, prototyping, and systems-level testing will be offered. Through these services, as well as ongoing glass technology education and training, we can help develop solutions to our customers' most pressing product development challenges," said Jean-Pierre Mazeau, senior vice president, Corning Science & Technology.

 

"From this new center in Taiwan," Mazeau added, "Corning's global network of world-leading technology expertise can be accessed in order to fully attend to these exciting opportunities."

 

Corning has more than 40 years of business development experience in Taiwan, largely through the growth of the company's display technologies business segment. "Some of the most ambitious opportunities in consumer electronics and other industries are being addressed here in Taiwan and throughout Asia," said Alan T. Eusden, president, Corning Display Technologies Taiwan. "Therefore, we believe that the establishment of the Advanced Technology Center is a logical step forward in Corning's continued commitment to growth in this region."

 

Sono-Tek Expands Customer Service Globally

Sono-Tek Corporation, a worldwide precision ultrasonic coating equipment manufacturer located in Milton, NY, announces expansion of customer services with new laboratory facilities in China, Korea, Germany and Taiwan. These new testing facilities will enable customers to test small samples of their liquids in a controlled environment, simulating process conditions as much as possible, in order to prove concept and ensure compatibility of liquids.

 

Emerging applications such as advanced energy coatings and specialty medical device coatings often find these services particularly valuable. Research and development professionals looking for a way to apply new coating formulations or improve functional coating characteristics are continually discovering Sono-Tek’s testing facilities to be an excellent means of finding just the right solution to their coating challenges.

 

Sono-Tek has offered laboratory testing services at their corporate headquarters in Milton, NY for years, taking much of the guesswork out of ensuring a successful process at the beginning of each customer relationship. Available laboratory equipment includes fully enclosed 3 axis programmable coating systems with a multitude of fixturing, heating and vacuum options, with a variety of different nozzle configurations.

 

Sono-Tek’s new labs in Asia and Europe will be staffed and managed by the local Sono-Tek distributors, with the added advantage of native language support and geographic proximity. The addition of these new laboratories extends Sono-Tek’s global reach and ability to provide superior customer service, while still offering a full range of testing services in their New York laboratory. The new labs will be up and running at all locations by mid 2011.

 

ROFIN-SINAR has New Production Capacities in Finland

ROFIN-SINAR Technologies Inc. announced that it has acquired, through its wholly-owned subsidiary CorelaseOy, a block of buildings in Tampere, Finland. The acquisition of these facilities will provide an increase in the manufacturing capacity for the Company's fiber laser series.

 

The purchase of the premises in Tampere comprises an area of about 20,000 square meters (sqm) (215,200 sq. ft.) of land. The buildings total over 5,000 sq. meters (53,800 sq. ft.) of floor space, including approximately 800 sq. meters (8,608 sq. ft.) of existing cleanroom capacities. The value of the transaction is approximately US$5.3 million and the transaction is subject to customary closing conditions.

 

"We are very happy to gain access to these premises as they perfectly suit our need to ramp up high power fiber laser production over the coming quarters. The existing cleanroom and production space will enable us to accelerate the hiring and training of additional work force to enhance the production of fiber laser modules. This investment underlines ROFIN's commitment to further strengthen our position in this technology," said Gunther Braun, CEO and President of RSTI.

 

MEMS Materials at Fraunhofer

Fraunhofer Institute for Microelectronic Circuits and Systems IMS (Duisburg, Germany) developed a new etch process to manufacture micro electromechanical systems (MEMS) for commercial-scale applications. Etching gasses allow MEMS designers to use a wider range of materials for the functional layer, while preventing device damage during etch.

 

This isotropic etching is based on a substance that etches vertically into the MEMS substrate and tunnels under the functional layer. The result is a functional layer 100nm thin connected to the silicon or other substrate by certain suspension points.

 

Conventional etch is performed with liquids, and can only remove material vertically, said Dr. Marco Russ, project manager at IMS.  When the etch fluid dries, filigree membranes are stuck to the substrate or destroyed. Functional and sacrificial layer materials are limited by the etch liquid.

 

The group will open a MEMS production facility on June 22, incorporating the etch technology. The new facility will use 2 gases in the etch process chamber instead of liquids, Russ said: Hydrogen fluoride (HF), which strong etching properties on silicon dioxide but does not affect silicon; and xenon difluoride gas (XeF2), which achieves the opposite effect. The gasses allow greater materials flexibility.

 

Samsung India Electronics to Build Fab

Samsung India Electronics Pte Ltd will set up its second manufacturing complex in Sriperumbudur, Chennai to cater to the fast growing requirements of the company's consumer electronics products in the sub-continent. The project will cost approximately $100 million over a five-year period starting next year.

 

"The growing demand for our products in the southern India, the strong infrastructure available in the region coupled with its proximity to the port, and the Tamil Nadu government's investor friendly approach are the factors that prompted us to set up this complex in Chennai," said R. Zutshi, Dy managing director, Samsung India Electronics.

 

The memorandum of understanding with the government of Tamil Nadu in India indicates that the construction on the 324,000m² and in Sriperumbudur will begin in January 2017, with commercial operation expected to start in August of the same year.

 

In the first phase of the project, Samsung plans to set up manufacturing facilities for color TVs, color monitors, refrigerators, air conditioners, washing machines, printers and other technology products.

 

The facilities for color TVs and color monitors, to be set up in the first year, are expected to have an annual production capacity of 1.5 million units and 1 million units, respectively. The second phase of the project calls for enhanced production capacities for the products mentioned.

 

"We expect to manufacture our advanced LCD TVs and LCD monitors in this complex as well," said Zutshi. Samsung expects to employ 2,500 people after full implementation of the project.

 

"We are looking at the new facilities becoming a global manufacturing hub for Samsung and will be manufacturing products at this facility not only for the domestic market but for the export markets as well," said S. H. Oh, president and CEO, Samsung South West Asia Regional Head Quarters.

 

The existing 121,000 sq. ft. manufacturing complex of Samsung at Noida, India has production facilities for color TVs, color monitors, refrigerators and washing machines.

 

The company's R&D operations at its Noida complex involve hardware or product customization, as well as software development which is being conducted at the Samsung India Software Center.

 

Telefunken Buys Renesas Electronics's Fab

The sale of Renesas Electronics America's semiconductor wafer fabrication facility in Roseville, California to Telefunken Semiconductors International LLC is now complete. The deal was announced by Renesas Electronics Corp., its subsidiary Renesas Electronics America Inc. and Telefunken Semiconductors GmbH & Co. KG.

 

As part of the strategies decided through its 100-Day Project announced on July 29, 2010, Renesas Electronics has been implementing various measures to improve manufacturing efficiency by promoting larger wafers, finer process nodes and production concentration. In line with these measures, the company decided to sell Renesas Electronics America's facility in Roseville, California, to Telefunken Semiconductors International. Telefunken was searching for a new manufacturing facility to expand its semiconductor business.

 

Telefunken intends to utilize the 200mm (eight-inch) line at the Roseville factory to manufacture its own analog/mixed-signal, HV products and products for its strategic foundry partners.

 

Telefunken also entered into a supply agreement with Renesas Electronics for manufacturing services at the Roseville factory. Under this agreement, Telefunken will manufacture products without interruption at the Roseville facility intended for Renesas Electronics' current customers, using the same high-quality level of production and service.

 

Further, Renesas Electronics announces that they still remain fully committed to meeting customers' requirements through its Quality Assurance Center at the Roseville facility to continue its customer support in the North American and European markets.

 

Telefunken is looking to expand the manufacturing capacity of the fab to increase wafer production, as well as bring in key technologies to offer broader manufacturing capabilities to its customers.

 

HWI Global Builds Cleanroom for Powerex

HWI Global, Inc., the Pittsburgh-based cleanroom design builder, has commenced construction of a 10,000 square-foot ISO 7 cleanroom for Powerex Inc. HWI Global obtained the design and build contract in August 2010. Powerex's corporate offices consist of a 90,000 square-foot manufacturing plant where the new cleanroom will be retro-fit. Scheduled for a mid-September certification, the equipment fit-up is expected by early October.

 

Powerex Inc.'s divisions support many markets: transportation, AC and DC servo drives, AC and DC motor controls, UPS, alternative energy, medical power supplies, welding, induction heating, electric vehicles, aircraft and white goods. Based in Youngwood, PA, Powerex is a leading supplier of discrete, modular and integrated high-power semiconductor solutions. Its broad product line -- including IGBTs, IPMs, DIPIPMs (a registered trademark of Mitsubishi Electric Corp.), Discrete Rectifiers and Thyristors, and Thyristor and Diode Modules -- is enhanced by Powerex divisions devoted to the development of platform and customer-specific modules.

 

Powerex Inc. was formed by two industry pioneers -- the Power Semiconductor Divisions of General Electric Company, and Westinghouse Electric Corporation. In 1994, Westinghouse sold its shares to General Electric and Mitsubishi Electric, which currently share equal ownership of Powerex.

 

HWI Global began the preliminary design and engineering in the fall of 2010. The Company conducted a full-assessment of the tenant improvements to the existing building, which was required in preparation for the eventual clean production space. HWI's General Construction Division performed an array of services since December 2010, including a complete mechanical and electrical demolition, relocation of a 200-ton chiller, installation of a 1,300 linear-foot main gas line, fire suppression and plumbing upgrades, as well as a complete equipment relocation of Powerex's existing Stem Cell low level production cell & IPP Integrated Power Product production areas.

 

Deric Haddad, CEO, HWI Global, states, "We knew going in that this project would bring many challenges. An older building that required some upgrades, the existing production and process needed to be displaced and reorganized, and there was an ultimate completion deadline to consider. But our construction management team has done an exceptional job in maintaining enough flexibility to provide Powerex the necessary TI services without jeopardizing their completion milestones.

 

Linde Opens Facility in South Korea

The Linde Gases Division celebrates the official opening of its on-site fluorine system equipment facility in Inju City, South Korea. The newly constructed 3,700m2 facility ( 39,812 sq. ft.), which required a total investment of €2.4 million, aims to meet the increasing demand for Linde’s fluorine (F2) technology worldwide in the photovoltaic, semiconductor and TFT-LCD device sectors.

 

Linde’s new facility is adjacent to the existing Linde Fluorine Centre of Excellence, which incorporates Linde’s Fluorine Business Operations Support Centre, Research and Development, Quality Assurance and Customer Training facilities. The site also houses a dedicated Linde electronic special gases facility.

 

"This €2.5 million investment in the new state-of-the-art fluorine systems facility is essential to support the continuous growth of our Asian customer base. It will also enable us to better serve our global customers with the exceptional quality, innovation and value that they have come to expect from Linde on-site F2 technology," said Carl Jackson, head of fluorine business for the Linde Gases Division.

 

Linde works from a total of five electronics technology centers worldwide, located in San Marcos and Alpha in the US, Bielefeld in Germany, Kaohsiung in Taiwan and now Inju City, South Korea.

 

Nanometrics Opens Singapore Center

Nanometrics Incorporated, a leading provider of advanced metrology systems, announced the opening of its Singapore Advanced Metrology Center, an applications development center for customers using Nanometrics metrology systems. The center provides dedicated support throughout Asia for customers requiring advanced modeling of complex structures and recipe development. Nanometrics investment and commitment to additional applications resources reflects the rapid growth and adoption of optical critical dimension (OCD) technology in semiconductor manufacturing due to smaller, more complex structures and new materials.

 

The Singapore location provides access to a large pool of technical talent and a significant concentration of the company's customers. In addition to applications development staff, the facility also includes sales and service support for Nanometrics customers. It also serves as a training center for regional customers and Nanometrics' branch offices.

"This expansion is important to our efforts to improve responsiveness in Asia and to better serve our customers," said Nagesh Avadhany, vice president of applications engineering and training programs. "We are pleased to have a highly-skilled local staff of engineers and scientists who now form the core of our regional applications team. They bring to Nanometrics a vital resource to build our customers' confidence in our ability to enable their most critical structures."

 

"Singapore offers a deep talent base, and will serve as a gateway to all of our customers in Asia," said Timothy J. Stultz, president and chief executive officer. "This significant commitment to our customers in the region will help us serve them as a more local company, with improved access and communication. We look forward to expanding relationships with our customers, as we grow our team in Singapore."

 

STM Ramps MEMS Production

STMicroelectronics, consumer and portable MEMS supplier, will bump up its micro electro mechanical systems (MEMS) production capacity to more than 3 million sensors a day by year's end.

 

The capacity ramp is being supported by a "beefed-up manufacturing machine," said Benedetto Vigna, group VP and GM of ST's MEMS, Sensors and High Performance Analog Division, citing the company's high-volume fab capability and repeatable, consistent test procedure. ST Micro makes MEMS in Agrate and Catania, Italy (sensor fabrication), Rousset and Crolles, France (logic die production), and Kirkop, Malta and Calamba, Philippines (assembly and testing).

 

The company's THELMA (Thick Epi-Poly Layer for Microactuators and Accelerometers) surface micro-machining process combines variably thick and thin poly-silicon layers for structures and interconnections (used in accelerometer and gyroscope MEMS fab). The complementary VENSENS (Venice Sensor) process allows STM to integrate a cavity into mono-crystalline silicon, producing an ultra-compact pressure sensor.

 

STMicroelectronics plans to sell these MEMS into high-growth markets as healthcare, industrial and automotive. STM began producing MEMS on 8" wafers in 2006, reducing its unit costs and accelerating development of new MEMS markets and expansion in established ones. STM's MEMS sensors are used in smart phones, tablets, personal media players, game consoles, digital still cameras and remotes, as well as laptop computers, car airbags, and enhanced navigation systems.

 

STMicroelectronics provides semiconductors for multimedia convergence and power applications.

 

Air Products’ Expands Its Production Facility

Air Products announced the expansion of its electronic materials development and production facility in Carlsbad, Calif. New materials developed in Carlsbad will help enable next-generation consumer devices such as smartphones and tablet computers.

 

The Carlsbad expansion includes an upgrade to laboratory facilities to support development and the scale-up of new products. As part of this investment in development capabilities, the Carlsbad applications laboratory will install new tools for product development and process demonstration. In addition, the analytical labs are being built out to support the analysis and performance testing of new materials.

 

“This investment in the Carlsbad development labs supports the introduction of new products such as our AP-LTO® and AP-LTN® chemical precursors for use in depositing modified silicon nitride and oxide films in various deposition processes including Atomic Layer Deposition (ALD), Plasma Enhanced Atomic Layer Deposition (PEALD), and Chemical Vapor Deposition (CVD),” said Jim Giolitto, business manager, Electronic Materials Chemicals. “Demand for these innovative new products is growing rapidly.”

 

Commercial-scale production facilities also have been expanded in Carlsbad. In particular, Air Products’ PDEMS® product line is experiencing strong growth as producers of microprocessors and other logic devices implement next-generation, low-K dielectrics. To support this growth, Air Products has expanded production capabilities for its DEMS® chemicaland associated porogens.

 

“Building upon a long history of developing innovative new products for the semiconductor industry, Air Products is excited to invest in our capabilities to create the next-generation materials our customers need,” said Corning Painter, vice president and general manager, Electronics, for Air Products.

 

Air Products serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. In fiscal 2010, Air Products had revenues of $9 billion, operations in over 40 countries, and 18,300 employees around the globe.

 

Jabil Investing in Chinese Facility

Rather than watch its customer base slowly erode from the tides of foreign competition, the electronics manufacturing services provider is following clients overseas to emerging markets that are providing medical device makers with low-cost alternatives (and in many cases, easier regulatory pathways) to their domestic operations. To stay competitive, Jabil reportedly is investing $10 million in a new injection molding factory in Shenzhen, China.

 

The facility, according to a published report, is being constructed within a larger existing manufacturing campus that Jabil operates for electronics customers and those in other markets. The molding factory will house 18 Japanese Fanuc injection molding presses to start, though the company plans to increase the number of machines to 50 within two years. Gaet Tyranski, business unit director for the healthcare and life sciences business of St. Petersburg, Fla.-based Jabil, said that the investment was driven by cost pressures among device manufacturers.

 

“I would maintain that the excise tax on medical devices coming out of the most recent [U.S.] healthcare reform act is causing OEMs to look for lower costs to maintain their margins,” he told the weekly newspaper during a January interview at the Shenzhen facility. “If they predominantly have facilities in Europe and the U.S., they are looking a lot more closely at both moving production overseas and outsourcing more production. I think it is an industry that is experiencing more outsourcing and the outsourcing is moving outside the United States.”

 

Jabil’s newest facility in Shenzhen will manufacture drug delivery devices for export to the United States and Europe. The facility, however, also will be licensed to make products for the domestic Chinese market, a strategy that eventually could help the company achieve significant future growth. “We are starting to see our customers with an eye toward the domestic markets, China for China and eventually India for India,” said Tyranski.

 

The Shenzhen factory will be able to manufacture 12.5 million disposable drug delivery devices annually, and will be certified to Class 8 cleanroom manufacturing. The operation will be highly automated to help cut down on labor costs, which have been rising quickly in recent years. Jabil employs more than 20,000 people in China, at factories in Tianjin, Suzhou and Wuxi.

 

 

McIlvaine Company

Northfield, IL 60093-2743

Tel:  847-784-0012; Fax:  847-784-0061

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