OTHER ELECTRONICS & NANOTECHNOLOGY

INDUSTRY UPDATE

 November 2020

McIlvaine Company

Table of Contents

Latest Addition to Fermilab Campus to Begin Construction

Quanta Expands Investments in Thailand Subsidiary

Foxconn, Pegatron Expanding Production Outside China

Incap Estonia Opened a New Production Line in Kuressaare

Merck Invests in New Shanghai Center

 ______________________________________________________

 

Latest Addition to Fermilab Campus to Begin Construction

Lots of natural light and hybrid labs will distinguish the new Integrated Engineering Research Center.

 

The 85,000-sf Integrated Engineering Research Center is the most important new structure on the campus of Fermilab since Wilson Hall opened almost 50 years ago.

 

This fall, construction is scheduled to begin on the Integrated Engineering Research Center (IERC), an $86 million, 85,000-sf infrastructure project on the 6,800-acre campus of the Fermi National Accelerator Laboratory in Batavia, Ill., the nation’s premier particle physics lab. 

 

IERC has been in the works since the summer of 2015, and at one time was conceived as a 100,000-sf building that dedicated two of its three floors to office space. That concept changed after a team comprised of Arup and Perkins and Will won a design competition that Fermilab conducted in 2017.

 

That team’s concept scales back the building to two floors, and includes more lab space. What emerges are “hybrid labs” that, essentially, remove the walls separating labs and offices for the purposes of colocation and collaboration. There are two hybrid zones on the ground floor, in one big open area “that just about anyone can walk through,” explains Aaron Tabares, a Senior Electrical Engineer for Arup’s offices in Chicago, which provides the SE, MEP, F/LS, AV, and IT services to the IERC project.

 

(He notes, parenthetically, that Arup’s acoustics expertise came in handy to help design these hybrids with quiet features for researchers when needed.)

 

Brian Rubik, SE, Fermilab’s project manager, adds that Perkins and Will, the designer and AOR on the IERC project, championed bringing more natural light into the new building, whose sloped roof includes clerestories that angle toward the campus’s iconic Wilson Hall.

 

Rubik notes that IERC’s mechanicals were moved to the center of its upper floor so that more offices could be positioned on the interior perimeter to receive more light. Fermilab calls the hallways and windows around the perimeter of the ground floor “science on display,” says Rubik.

 

“A lot of the building’s systems are discrete,” adds Tabares. “The form of the building considered just about every angle for the occupants.”

 

Open, collaborative spaces, designed modularly for maximum flexibility, are IERC's hallmarks.

 

Keeping the mechanicals off the roof will present a more aesthetically pleasing appearance for a building that, when it is completed in October 2022, will be a centerpiece of Fermilab’s campus. Prominently featured in IERC’s design is its glassed-in Argon Cube, located at the northeast corner of the building. The Argon Cube is an R&D space related to Liquid Argon (Lar) in support of the DUNE (Deep Underground Neutrino Experiment) and the LBNF (Long Neutrino Baseline Facility). It houses the Liquid Argon cryostat vessel, where Fermilab will test the detector components and advance study related to using Lar cryogenics in filtration and air contamination recovery.

 

A Tight Jobsite

This project presented an array of physical challenges to the Building Team, which includes Mortenson (GC/CM) and Terra Engineering (CE).

 

“Terra’s role was especially important, as there were a lot of utilities running into this building,” says Thomas Mozina, Design Principal for Perkins and Will, whom BD+C interviewed last week with Adana Johns, AIA, LEED AP, the firm’s Associate Principal and Science + Technology Practice Leader.

 

Mortenson has been prepping IERC’s site, adjacent to Wilson Hall since July 2019. The location is constrained by the formal “horseshoe” entry drive and a raised (8- to 10-ft-tall) berm that had been a radiation shield for a 1.25-mile-diameter Tevatron beam line, the main ring around the particle accelerator, which was deactivated in 2011. Tabares says that excavation was dictated by another, active particle accelerator beam. An electrical artery outside of the building also needed to be relocated.

 

Modular Design for Flexibility

Inside the IERC, Perkins and Will designed office and lab space “with a certain sense of modularity,” says Mozina, in order to provide Fermilab with the flexibility it needs as research evolves. (He describes the design as a kit of parts, and Johns does not think the client will require many more changes in that design, “having already gone through so many iterations in the planning process.”)

 

Wilson Hall, which dates back to 1971, has 800 employees. It will connect with IERC at the former’s ground floor and 16-atory atrium level via a 20-ft-long enclosed runway.

 

 

Quanta Expands Investments in Thailand Subsidiary

Quanta Computer Inc., one of the largest notebook computer ODM services providers in the world, is planning to build new production facilities in both Taiwan and Thailand to avoid the impact from the continued trade frictions between the United States and China.

 

Quanta said it will spend up to NT$950 million (US$30.65 million) to build a third production complex in a location close to its headquarters in Taoyuan, northern Taiwan. The company said it decided to expand its facilities in Taiwan because its research and production facility inside its headquarters complex needed more space to grow and meet the rising demand from its clients. Currently, the R&D center has a workforce of more than 7,000 employees, Quanta said. Last year, the company acquired a factory as its second production facility from photoelectric and peripheral product maker CMC Magnetics Co. for NT$4.28 billion to roll out high-end servers. As for the planned third production site, Quanta did not disclose what products it will make, but said it will follow the orders from its clients.

 

In addition to production, the local media reported the company will use the new building as a base for the development of artificial intelligence. As for its planned production in Thailand, Quanta said it will set up a 100 percent owned subsidiary there to pave the way for its investment in the Southeast Asian country. Quanta plans to invest up to 1 billion Thai Baht (US$32.26 million) for production expansion in Thailand and the investment will be carried out in phases based on a decision made by its board of directors.

 

Regarding its presence in Thailand, Quanta said the company is planning to buy a factory from a Thai company. The local media reported that the factory Quanta is eyeing is located close to Bangkok and is owned by World Electric, a veteran electronics assembler in Thailand. Quanta said the investments in Taiwan and Thailand are expected to provide alternative production options to its clients at a time when the global trade disputes have boosted operating costs due to higher tariffs imposed by Washington on Chinese goods. In an investor conference held in August, Quanta Chairman Barry Lam (林百里) said since his company’s notebook computer sales to the U.S. market accounted for about one-third of its total sales, it was necessary for the manufacturer to move part of its production out of China to Southeast Asian countries. In a recent research paper of market information advisory firm International Data Inc. (IDC), Quanta ranked as the second largest notebook computer assembler in the world, taking a 21 percent share, up from a 20.3 percent share in the first quarter. Compal Electronics Inc., another Taiwanese contract electronics maker, took the top spot after grasping 30.5 percent of the global notebook computer assembly market during the April-June period, up from 26.0 percent in the previous quarter, according to IDC.

 

Barry Lam, chairman of Quanta ComputerQuanta Computer Incorporated is a Taiwan-based manufacturer of notebook computers and related peripherals or electronic hardware. It is one of the largest original design manufacturers (ODM) of notebook computers in the world. The major customers cover key players of USA, Japan and Europe brands.

 

 

Foxconn, Pegatron Expanding Production Outside China

Taiwan-based makers Foxconn Electronics and Pegatron have been building more overseas production bases outside of China in line with globalization of operations.

 

Foxconn has set up factories in Vietnam, with overall production capacity able to meet demand in 2021 and 2022, according to company chairman Liu Young-Way. But it is uncertain whether the production capacity in Vietnam can be expanded because it is increasingly difficult to acquire factory sites in the country, especially in northern Vietnam, Liu noted.

 

Foxconn will also set up plants in India, which has huge market potential, Liu said. However, the progress will depend on the country's industrial environments, politics and government efficiency, Liu noted.

 

Foxconn is establishing a production base in Wisconsin, the US, with product lines to focus on local demand including AI-based devices, servers, telecom/networking devices, and software products, Liu indicated.

 

Pegatron started constructing a factory in Indonesia in 2019, and production there has begun, disclosed company president and CEO Liao Syh-jang, adding it has also kicked off production at a factory in Vietnam.

 

Pegatron has decided to build a factory in India and plans to start production there as early as 2021, Liao indicated.

 

 

Incap Estonia Opened a New Production Line in Kuressaare

Incap Electronics Estonia opened a new SMT production line in Kuressaare factory, which enables to change the production equipment according to the clients’ needs. The new production line will maintain Kuressaare factory’s capability to produce electronics in a modern and flexible way.

Incap Estonia invested EUR 2.1 million in order to replace two production lines with one new one. According to Greg Grace, Managing Director of Incap Estonia, the investment is financed with technology guarantee renting. “This means that our capability to offer suitable products and services to our customers becomes even more flexible. Electronics manufacturing companies prefer technology guarantee renting more and more, as this allows them to maintain their competitiveness,” Grace explained, why production needs to be constantly rearranged in order to meet the needs of customers’ new or changing projects.

 

Previous investment by Incap Estonia was done in 2017 in SMT (surface-mount technology) production line offered by SMT-Renting. “This investment has really paid off, as we increased our production capacity and were able to offer our customers more flexible solutions. With the rented line, we can constantly upgrade production lines with new technologies according to customer needs. That is why we decided to make another investment to increase our competitiveness,” Grace explained.

 

Grace added that although the company was affected by the Covid-19 pandemic this year, the global trends of the industry are positive for Incap. “People are using more and more electronics and we see that customers are interested in moving the production closer to home markets – so more and more production is moving from China to Europe. These trends also give us the courage to make the investment,” Grace said.

Mayor of Saaremaa municipality, Mikk Tuisk: “I am very pleased to see that one of our largest industrial companies is doing well. Electronics have become an integral part of our daily lives and I believe and hope that this line opening will not be the last. I wish you all the best and successful investments in the future as well.”

 

As an international electronics manufacturing company, Incap offers electronics solution produced using the latest technology. Incap’s electronics can be found for example in smart meters, in light electric vehicles on the streets, in smart led lights in Estonian different regions as well as in the machinery of the world’s most famous marine company or in the systems of the most well-known elevator manufacturer. Battery banks produced in Incap can also be found on Estonia’s first hybrid passenger vessel Tőll, which serves passengers on the Virtsu-Kuivastu route.

 

Market Information:

Incap Corporation is a trusted partner and full-service provider in Electronics Manufacturing Services. As a global EMS company Incap supports customers ranging from large multinationals and mid-sized companies to small start-ups in their complete manufacturing value chain. Incap offers state-of-the-art technology backed up by an entrepreneurial culture and highly qualified personnel. The company has operations in Finland, Estonia, India, Slovakia, the UK and Hong Kong and employs approximately 1,300 people. Incap’s share has been listed on Nasdaq Helsinki Ltd stock exchange since 1997.

 

 

Merck Invests in New Shanghai Center

Merck is investing 18 million euros (US$21.2 million) in building an electronics technology center in Shanghai, offering materials and innovations to rapidly growing semiconductor and display industries in China, the company said.

 

Merck’s new center, in Jinqiao in the Pudong New Area, will host capabilities for analytics, application testing and sampling for electronic materials. The 35,500 sq. ft. (3,300 square meter) facility is scheduled to start operation in the first half of 2022.

 

Shanghai is the right place for Merck to further invest in China’s next-generation electronics, said Kai Beckmann, CEO performance materials and a member of the executive board of Merck.

 

The country’s post-COVID growth will increasingly be driven by digital innovation technologies such as 5G, artificial intelligence, quantum computing and the Internet of Things, Beckmann said.

 

More than 600 semiconductor firms have set up facilities in Shanghai with a combined investment of 300 billion yuan. The local integrated circuit industry has leading positions nationwide in design, manufacturing, equipment, materials and assembly and testing, according to Shanghai government officials.

 

Initially, Merck will have over 20 employees in the new center. Semiconductor materials have become one of Merck’s fastest growing businesses in China and more than 150 products are being supplied to around 100 chip makers across the country, covering each step of their wafer processing, according to Allan Gabor, president of Merck China.

 

China is a portal to the world for Merck, which believes that a golden decade for China’s semiconductor industry has just begun, Gabor said.

 

With this investment, Merck will also further strengthen its analytical capabilities in the field of OLED (organic light-emitting diodes) materials. OLED enables flexible displays and is used in high-end TVs and iPhone 12 models.

 

A decade ago, Merck established business connections with BOE, China’s biggest display panel maker. Shanghai and the Yangtze River Delta are key areas for OLED innovation and application, said Gabor.

 

McIlvaine Company

Northfield, IL 60093-2743

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

E-mail:  editor@mcilvainecompany.com

Web site:  www.mcilvainecompany.com