As worldwide subscriptions to 3G networks exceed 100 million, industry association The UMTS Forum has confirmed that WCDMA is the world's most popular 3G technology by a factor that is fast approaching three to one.

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The 100 million subscriber milestone represents almost 75 million UMTS/WCDMA customers and more than 25 million CDMA2000 1x EV-DO customers.

In the first quarter of the year, WCMDA represented no less than 95% of total net subscriber additions (WCDMA+GSM) in Europe.

As of May 2006, there were more than 110 WCDMA networks operational in 48 countries. In addition there were 40 operators providing both EDGE and WCDMA coverage in 27 countries worldwide. Within Europe, 28 operators providing complementary EDGE/WCDMA coverage in 18 countries. The UMTS Forum predicts that global 3G/UMTS subscriptions will reach 100 million during the fourth quarter of this calendar year. Moreover, the second phase of 3G/UMTS is now progressing with more than 25 HSDPA networks deployed in May 2006 - enabling 3G customers to experience the full capabilities of mobile broadband.

Western Europe represents just over half of the world's total WCDMA subscribers. The region currently holds 50.4% of the global WCDMA subscriber base, with Asia Pacific contributing 47.8%. The remainder - less than 2% - is contributed by subscribers in the Middle East, Eastern Europe, USA/Canada and Africa.

Matsushita announces plans to discontinue operations at its subsidiary Panasonic AVC Networks Germany at the end of March 2007, after which it will begin closing/liquidation procedures.

Panasonic AVC Networks (151 employees) mainly responsible for the manufacture and product development for the European DVD recorder market, currently faces ever-intensifying global competition and severe price declines. Under these circumstances, Matsushita decided this closing as part of the company’s global restructuring initiatives in the DVD recorder business. Accordingly, future product development of DVD recorders for the European market will be shifted to Japan. Matsushita will continue production for the European DVD recorder market at Panasonic AVC Networks Slovakia its consolidated subsidiary.

This transaction represents the creation of a new world leader in smart cards and digital security, with 2005 pro forma revenues of approximately EUR 1.7 billion ($ 2.2 billion), operations in 120 countries, large operational centers in the Paris and Marseille areas, and 11,000 employees including 1,500 R&D engineers. After further review, Axalto and Gemplus have reconfirmed their initial estimate of the synergies arising from this transaction, expected to amount to EUR85 million (US$100 million) per year on a fully-phased basis.

Saab is acquiring Ericsson Microwave Systems (EMW) which has approximately 1250 employees in Gothenburg, Sweden. The acquisition adds radar and sensor operations to Saab's product portfolio in defence, aviation, space and civil security. The purchase sum is SEK 3,8 billion. The purchase also includes the Ericsson 40 percent share in Saab Ericsson Space, a subcontractor for equipments to commercial satellites.

Saab and EMW have been working closely together for a long time. EMW currently delivers the radar for the Gripen fighter. The acquisition enables Saab to create scope of action to secure the Gripen's long-term development.

EMW's defence operation has supplied more than 3000 radar systems in over 30 countries. EMW's operations within National Security and Personal Safety as well as Power Systems, with a total of 300 employees, will remain part of Ericsson.
The defence operation within EMW has sales of approximately 2 billion SEK and at the start of 2006 had order backlog of approximately 3.5 billion SEK. Exports make up approximately 65 percent of turnover.

In an other deal, Ericsson offered €30 million to buy the IP-telephony and communication specialist Netwise.

The European Parliament has adopted the first "Competitiveness and Innovation Framework Programme" (CIP). Between 2007 and 2013, some 350,000 small and medium-sized enterprises (SMEs) will receive € 3.6 billion in EU support to invest in all forms of innovation and growth. The new programme will support actions to help enterprises and industry to innovate. It will also boost energy efficiency and renewable energy sources, environmental technologies and a better use of information and communication technology (ICT).

CIP is composed of three specific programmes:
(1) Start up and growth of SMEs: the “Entrepreneurship and Innovation Programme” with a budget of € 2.17 billion including € 430 million to promote eco-innovation.

(2) Information and communication technologies: the “ICT Policy Support Programme”, with a budget of € 730 million, will contribute to competitiveness, growth and jobs through stimulating a wider adoption and more efficient take up and better use of ICT.

(3) Increased use of renewable energy and reduced energy consumption the “Intelligent Energy-Europe Programme” with a budget of € 730 million will support energy efficiency, new and renewable energy sources, and technological solution to reduce greenhouse gas emission cause by the transport sector.

Competitiveness and Innovation Framework Programme

The Swedish EMS provider Note has signed a letter of intent to acquire Nordic-Printdesign, which offers PCB design know-how. Nordic-Printdesign currently has 8 employees at offices in Oslo and Stockholm. This acquisition marks the first step in Note’s initiative to increase its market share in Norway.

UK distributor Anglia has signed a UK and Ireland distribution agreement with Japanese connector manufacturer Hirose. Hirose manufactures a wide range of connectors for applications that include automotive, digital cameras and digital video cameras, mobile phones and PDAs, notebook PCs, DVD recorders, plasma display panels, as well as a range of RF and microwave components.

Previously, Anglia announced that it has signed a UK and Ireland distribution agreement with specialist connector manufacturer Bulgin. The Bulgin product range includes connectors, as well as a range of battery and fuse holders, EMI filters, indicators and security switches.

Acal Semiconductors has signed a franchise agreement to sell Microchip Technology's complete range of microcontroller and analog semiconductors in the UK and Ireland.

Harting has signed a distribution agreement for electronics connector products with Futura Electronics. Futura, based in Balbriggan near Dublin, will distribute Harting products throughout Ireland. Futura Electronics is an Irish company established in 1983 as component agents and distributors.

Swiss EMS supplier Enics has completed the third extension of its Elva Business Unit in Estonia. Enics has been operating in Elva since the year 2004. The main role of Enics Elva is to provide cost competitive alternative for customers inside Europe. This means manufacturing products which do not require close customer proximity and having higher and medium volumes for industrial and medical electronics customers. "We will grow significantly and double our capacity within the next couple of months. This growth requires new workforce, at the moment we employ 450 people, but by the end of this year the amount will be over 500", states Mr. Kalle Kuusik, General Manager, Enics Eesti.

Canadian EMS-provider Celestica will close its assembly line in Saumur, France at the end of July. 200 workers will be fired from the plant on July 31. Celestica will transfer the production from Saumur to its two factories based in Czech Republic.

Finnish EMS Elcoteq will add some 650 workers to its Pécs plant in Hungary.

Glyn has become the official distributor for Cyan Technology, a British supplier of microcontrollers, in Germany, Austria, Norway, Sweden, New Zealand and Australia. Glyn is growing faster than the market. In 2005, the German specialty distributor increased its sales of over 30% to EUR 100.6 million.

Rutronik consolidates the management of its international distribution activities into one key pan-European position. Frank Rotthoff, an experienced industry insider has been appointed to the post of Sales Director Europe with effect from 1 May 2006. He is responsible for the entire distribution region spanning 23 European countries except Germany and reports directly to Thomas Rudel, Managing Director of Sales and Marketing.

Nu Horizons Electronics, a global US distributor of advanced technology active semiconductor, display and system solutions, announced a non-binding letter of intent to acquire DT Electronics, a franchised technical distributor of electronic components based in Coventry, United Kingdom. For its most recent fiscal year ended March 31, 2006, DT Electronics has reported revenues of approximately US$25 million. Established in 1987, DT Electronics' products come from suppliers of semiconductors, power supplies and passive components.

Advanced Battery Technologies, a Chinese developer and manufacturer of rechargeable Polymer-Lithium-Ion (PLI) batteries, has signed a memorandum of understanding with Lefeber Management, a Dutch company located at Laiden, the Netherlands, for LML to act as ABAT's agent to distribute ABAT's polymer lithium-ion battery, and nanometer material battery in the region of Europe for a period of two years.

Advanced Battery Technologies, founded in September 2002, manufactures rechargeable Polymer Lithium-Ion (PLI) batteries for electric vehicles, motorcycles, mine-use lamps, cell phones, notebook computers, and other personal electronic devices.

OLED-T, a UK-based manufacturer of organic light emitting diode (OLED) materials, has invested $900,000 in a R&D facility on the Brunel University Science Park site, Uxbridge. The new 186m2 R&D facility is a chemistry laboratory that will enable OLED-T to accelerate the production of its OLED materials known as Elamates and develop future generations of materials.

DisplaySearch, the worldwide leader in display market research and consulting, reported that the OLED industry reached revenues of over $500 million in 2005 and forecast revenues of more than $4.6 billion by 2010.

Acculogic announces a further expansion in board test capabilities with a successful bid to purchase Scorpion Technologies in Germany.

Triton, an independent European private equity investor, and the Dematic management have together taken over the shares in the worldwide Dematic business from Siemens. This step concludes the realignment of Dematic - which started in September last year - leaving the company as an autonomous enterprise. The companies involved have agreed not to disclose details of the transaction or of the sale price. Dematic is one of the world's leading suppliers of logistics automation equipment. Dematic employs about 4,000 people and achieved a business volume of more than 800 million euros.

Elron Electronic Industries announced that A.M.T. - Advanced Metal Technologies-, an Elron group company, has completed a $14 million financing led by Shamrock Israel Growth Fund. Elron is investing an aggregate of $5 million in this financing round in which other existing shareholders also participated. AMT develops, markets and licenses advanced technologies for amorphous and nano-crystalline materials, for a wide range of commercial applications. AMT operates together with its group companies, creating innovative solutions for applications mainly for electrical heating, sensoring (authentication and coding solutions), electronic shielding and electronic components.