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EDITORS INVITED TO ATTEND SUBCON: THE FIRST SEMICONDUCTOR SUBCONTRACT MANUFACTURING CONFERENCE, NOV. 9-10

 EDITORS INVITED TO ATTEND SUBCON: THE FIRST SEMICONDUCTOR
 SUBCONTRACT MANUFACTURING CONFERENCE, NOV. 9-10
 PLEASANTON, Calif., Nov. 5 /PRNewswire/ -- The MEPPE (Microelectronic Packaging and Processing Engineers) Group Inc. invites editors and industry analysts to attend SUBCON, The First Annual Semiconductor Subcontract Manufacturing Conference, Nov. 9-10, 8 a.m. to 5 p.m., at the Red Lion Inn in San Jose, Calif. SUBCON will bring industry leaders together to discuss shaping the future of subcontracting in the multi-billion dollar electronics industry.
 Keynote and panel speakers will include Wes Patterson of Xilinx, on "Manufacturingless Manufacturers;" Dan Hutcheson of VLSI Research on "Packaging Forecast and Trends;" Peiman Amouktah of recent Baldridge- award-winner Solectron, on "Board Level Subcontractors;" Ed Blackshear of IBM, on "Materials -- Trends and Impact on Subcontractor and Semiconductor Manufacturing;" and Rick Adams of Ford Motor Co. on "Subcontract Auditing and Standardization." MEPPE and SUBCON co-chairs, Harry Rozakis and Dean Strausl will introduce the conference and discuss the size and shape of the subcontract business.
 According to the MEPPE Group, an international trade association for packaging professionals, semiconductor sales will be constrained by packaging production capacity as early as the second quarter of 1993. This fact is the result of an extensive private MEPPE industry survey and is the subject of the SUBCON conference.
 "SUBCON features the subcontractors who do assembly for the integrated circuit industry and their customers," explained Dean Strausl, co-chairman of The MEPPE Group. "These contractors account for nearly 17 percent of the world's IC packaging and constitute an estimated $1.4 billion industry. The shortage of capacity that our study predicts is the result of a trend whereby IC companies are reducing their investment in manufacturing. This is particularly true in assembly and test, where there has been excess capacity since 1984. New well-financed entrants to the subcontract industry created a buyers' market."
 Another contributing factor to the predicted capacity shortage, according to the MEPPE study, is the manufacturingless manufacturer. Nearly 150 IC companies are manufacturingless, that is, they contract out all but very small portions of their manufacturing requirements. These companies, which are characterized by high growth rate, complex new products and total dependence on contract manufacturing, comprise nearly 20 percent of total IC sales. The expectation has been that the capacity reductions within IC manufacturers would be made up by what was perceived to be a subcontract overcapacity. A sudden surge in unit volume in the first half of '92 has subcontractors full, and new investments will not keep up with projected '92 and '93 demand. Although subcontractors project they will invest a hefty $300 million in 1993, this is still $150-200 million short of what is required.
 The data for the study will be published in the proceedings of SUBCON. Press are welcome to quote this data with attribution to SUBCON and The MEPPE Group Inc.
 Founded in 1978, The MEPPE (Microelectronics Packing and Processing Engineers) Group Inc. is an international trade association of suppliers and manufacturers dedicated to the advancement of the assembly, packaging and test disciplines within the semiconductor industry. In addition to monthly speaker lunches, publications and other membership benefits, MEPPE produces industry seminars and trade shows, including the annual Focus Conference and Exhibition and SUBCON -- the Semiconductor Subcontract Manufacturing Conference. For membership or conference information, please contact the MEPPE office at 5673 W. Las Positas Blvd., Pleasanton, CA 94588. Phone: 510-463-1420 or FAX: 510-463-1583.
 -0- 11/5/92
 /CONTACT: Dean Strausl or Harry Rozakis, co-chairs of The MEPPE Group, 510-463-1420; or Helene Tannor Randle or Maxine Bingham of Agora Marketing International, 408-496-6744, for The MEPPE Group/ CO: The MEPPE Group Inc.; SUBCON ST: California IN: CPR SU:


GT-LM -- SJ007 -- 7895 11/05/92 16:14 EST
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Date:Nov 5, 1992
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