Panel Discussion - Counterfeit Electronics and the Defense Authorization Bill

Welcome to Today’s Live PanelCounterfeit Electronics & the Defense Authorization Bill

December 8, 2011

Copyright © 2011 IHS Inc. All Rights Reserved.

Supply & Demand Chain ExecutiveSupply & Demand Chain ExecutiveThe executive’s user manual for successful supply and demandsuccessful supply and demand chain transformation, providing analysis, viewpoints and case studies to steer executives and supply management professionals through the world of p gsupply and demand chain enablement to gain competitive advantageadvantage.

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ModeratorsModerators

fBarry HochfelderEditor, Supply & Demand Chain Executive

R KiRory KingDirector, Global Product Marketing, IHS

3

Counterfeits: A Big DealRisks to Company, Brand, and Performance

What is the Impact of Counterfeit Electronics?

37%44%

Compromise device/product security

Undermine compliance claims

ANY

ND

(% Respondents)

36%71%

55%42%

Product launch delays

Damage brand / reputation

Expose product safety / legal liability

Expose contractual liability

T NS

CO

MPA &

BRAN

38%84%

67%57%

Increase product dev’pt time/costs

Product quality/reliability failures

Customer returns/recalls

Production line stoppages

CE

PR

OD

UC

&O

PE

RAT

IO

65%64%

62%51%

38%

Increase warranty/maint costs

Reduce expected product life

Inhibit sales / customer sat

Add to unit costs

Increase product dev pt time/costs

FIN

AN

CIA

L&

PER

FOR

MA

NC

65%0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Increase warranty/maint. costsP

Source: Benchmarking Counterfeit & Inferior Grade Components, Supply & Demand Chain Executive & IHS Inc., April 2009

Counterfeits: A Huge DealLoss of Life and National Security in Jeopardy

"They ground aircraft and impact airplane safety" …“Bring disrepute to our company / blacklisting from customers ”Bring disrepute to our company / blacklisting from customers.“Destroy customer trust, confidence & credibility.”“Customers do not get product in a timely manner”"They cause failure of safety related components in nuclear plants."y y“Flood market and create unjust competition with reliable sources”"Counterfeiting causes a loss of revenue due to equipment down time." “Increase Lab testing time” and “Increase procurement costs”“Undermine revenues” and “Loss of customers”"They harm patients and pose a significant risk of death." “They increase risk of legal action and product failure”“Increase warranty claims”Increase warranty claims“Force multiple, costly QA in destructive and non-destructive examinations.”“Compromise Security, DOD, Government” … …“Counterfeiting Jeopardizes our missions and soldiers safety."

5

Shown: DailyTech LLC, June 17, 2011Source: Benchmarking Counterfeit & Inferior Grade Components, Supply & Demand Chain Executive & IHS Inc., April 2009

Today’s PanelToday s Panel

Paul HagenPrincipalBeveridge & Diamond

Kristal SniderVice PresidentERAI, Inc.

Marina MalenicAviation ReporterJane’s Defense Weekly

Dan Ellsworth Tom DingesSarah McDowallSenior Analyst Country Dan Ellsworth

President and CEOWorld Micro, Inc.

Tom DingesAnalyst, EMS & ODMIHS iSuppli

Senior Analyst, Country Intelligence – Asia Pacific IHS Global Insight

Mark NorthrupVP of Advanced Technical Operations & Strategy

Mark SniderPresident and Founder

Glenn BassettVice President, Supply Chain


IEC Electronics. ERAI, Inc.IHS, Inc.

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Marina MalenicAviation Reporter Jane’s Defence WeeklyAviation Reporter, Jane s Defence Weekly

Company: IHS Jane’sSpeaker: Marina MalenicTitle: Aviation Reporter, Jane’s Defence WeeklyWebsite: www.janes.comPhone: 800.824.0768Email: [email protected] | [email protected]

@IHSJanes@JDefenseWeekly

About IHS Jane’sWith more than 100 years of experience, IHS Jane’s holds an unrivalled reputation for the reliability accuracy and impartiality of our information and advice trusted and relied upon by

Email: [email protected] | [email protected]

reliability, accuracy and impartiality of our information and advice, trusted and relied upon by business, government and military decision-makers worldwide.

In the specialist fields of defence, security, public safety, transport and law enforcement, IHS Jane’s intelligence is a ‘must have’ resource for our clients, who can trust our intelligence over th t f ththat from any other open source.

IHS Jane’s continues to push the boundaries in open source intelligence gathering, reporting and analysis. Our solutions offer the breadth, depth, accuracy and reach to meet a broad range of needs.


Kristal SniderVice President ERAI Inc and SAE International G 19 Committee MemberVice President, ERAI Inc. and SAE International G-19 Committee Member

Company: ERAI Inc.Speaker: Kristal SniderTitle: Vice President and member SAE Intl G-19 CommitteeWebsite: www.erai.comPhone: 239.261.6268Email: [email protected] | [email protected]

@ERAI_Inc

About ERAI Inc.ERAI is a global information services organization that monitors, investigates, reports and mediates issues that are affecting the global supply chain of electronics ERAI is the industry's


mediates issues that are affecting the global supply chain of electronics. ERAI is the industry s leading source of risk assessment information and insight enabling companies to analyze risk mitigation on vendors, customers and parts. As an organization, we utilize the power of partnership by uniting our Members through data sharing and knowledge, which in turn provides critical information services to our Members.


Paul E. HagenPrincipal Beveridge & Diamond P CPrincipal, Beveridge & Diamond, P.C.

Company: Beveridge & Diamond, P.C.Speaker: Paul E. HagengTitle: PrincipalWebsite: www.bdlaw.comPhone: 202.789.6000 (Company) | 202.789.6022 (Direct)Email: [email protected]

About Beveridge & Diamond, P.C.Since 1974, Beveridge & Diamond, P.C. has defined the practice of environmental law in the U S With almost 100 attorneys nationwide the Firm has helped clients achieve success in

Email: [email protected]

U.S. With almost 100 attorneys nationwide, the Firm has helped clients achieve success in numerous venues and in every substantive area of environmental practice, including litigation and product stewardship. The Firm works with leading companies in the computer, consumer electronics, semiconductor, and wireless industries on a wide-range of compliance, market access, sustainability and enforcement matters. The Firm has assisted several clients with the , ydevelopment of national and global product take-back and recycling programs.


Sarah McDowallSenior Analyst Country Intelligence Asia Pacific IHS Global InsightSenior Analyst, Country Intelligence – Asia Pacific, IHS Global Insight

Company: IHS Global InsightSpeaker: Sarah McDowallTitle: Senior Analyst, Country Intelligence – Asia PacificWebsite: www.ihsglobalinsight.comPhone: 781.301.9325 (Company) | +44 203.159.3376 (Direct)Email: [email protected] | [email protected]

@ihsglobalinsigh

About IHS Global InsightIHS Global Insight offers economic and financial analysis, forecasting, and


market intelligence for 204 countries from Afghanistan to Zimbabwe. With more than 325 economists and analysts worldwide covering 170+ industries, you can tap into our data, insights and tools to monitor, analyze and interpret global conditions affecting your business.conditions affecting your business.


Thomas J. Dinges, CFA Global EMS & ODM Research Practice IHS iSuppliGlobal EMS & ODM Research Practice, IHS iSuppli

Company: IHS iSuppliSpeaker: Thomas J. Dinges, CFAgTitle: Global EMS & ODM Research PracticeWebsite: www.isuppli.comPhone: 310.524.4007Email: [email protected]

@iSuppli

About IHS iSuppliIHS iSuppli's market intelligence helps technology companies achieve market leadership. Catch the latest teardown reports from all across the world straight from our immensely experienced


the latest teardown reports from all across the world straight from our immensely experienced analysts. The Teardowns portal at IHS iSuppli provides deeper insights into bill of Materials (BOM), photo analysis, component cost tables and graphical representation of mobile handsets, personal and home entertainment electronics, and computers and data communication devices. IHS iSuppli provides comprehensive teardowns for new and upcoming devices in the market. pp p p p g


Glenn BassettVice President Supply Chain IHSVice President, Supply Chain, IHS

Company: IHSSpeaker: Glenn BassettTitle: Vice President, Supply ChainWebsite: www.ihs.comEmail: [email protected] | [email protected]

@IHS_SupplyChain

About IHSIHS (NYSE: IHS) is the leading source of information and insight in critical areas that shape today’s business landscape including energy and power; design and supply chain; defense risktoday s business landscape, including energy and power; design and supply chain; defense, risk and security; environmental, health and safety (EHS) and sustainability; country and industry forecasting; and commodities, pricing and cost. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with y g p p gspeed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,400 people in more than 30 countries around the world.


Dan EllsworthPresident and CEO World Micro IncPresident and CEO, World Micro, Inc.

Company: World Micro, Inc.Speaker: Dan EllsworthTitle: President and CEOWebsite: www.worldmicro.comPhone: 770.698.1900 (Company) | 770.698.1928 (Direct)Email: [email protected] | [email protected]

@WorldMicro

About World Micro, Inc.World Micro, Inc., is a global, aerospace, military, commercial, and medical electronic component and products distributor focused on quality systems The company also leads the


component and products distributor focused on quality systems. The company also leads the industry in detection of counterfeit components and anti‐counterfeit education and training. Since 1996, World Micro has helped its customers solve difficult supply chain issues through innovative research, design, sourcing, stocking, procurement, inventory, and management solutions. World Micro, Inc. is privately held with headquarters in Roswell, Georgia, and an Asian distribution hub , p y q , g ,in Penang, Malaysia.


Mark NorthrupVP of Advanced Technical Operations & Strategy IEC ElectronicsVP of Advanced Technical Operations & Strategy, IEC Electronics

Company: IEC ElectronicsSpeaker: Mark NorthrupTitle: VP of Advanced Technical Operations & StrategyWebsite: www.iec-electronics.comPhone: 315.332.4283 (Direct) | 315.573.2873 (Cell)Email: [email protected]

@IECElectronics

About IEC ElectronicsIEC Electronics Corporation is a premier provider of electronic manufacturing services (“EMS”) to advanced technology companies primarily in the military and aerospace, medical, industrial and computing sectors. The Company specializes in the custom manufacture of high reliability complex circuit cards system level assemblies a wide array of custom cable

Email: mnorthru@iec electronics.com

in the custom manufacture of high reliability, complex circuit cards, system level assemblies, a wide array of custom cable and wire harness assemblies, and precision sheet metal products. As a full service EMS provider, IEC is a world-class ISO 9001:2008, AS9100, AC7120, and ISO13485 certified company. The AS9100 certification enables IEC to serve the military and commercial aerospace markets. The ISO13485 certification supports the quality requirements of medical device markets. The AC7120 NADCAP accreditation is for electronics manufacturing to support the most stringent quality requirements of the aerospace industry, as well as ITAR registered and NSA approved under the COMSEC standard.requirements of the aerospace industry, as well as ITAR registered and NSA approved under the COMSEC standard. IEC Electronics is headquartered in Newark, NY (outside of Rochester) and also has operations in Victor, NY, Rochester, NY, Albuquerque, NM and Bell Gardens, CA. Additional information about IEC can be found on its web site atwww.iec-electronics.com. Dynamic Research and Testing Laboratories, LLC (DRTL) technical staff provides component risk mitigation , destructive physical analysis(DPA), failure analyses, product qualifications , material qualifications, and consulting services. Our staff offers highly respected technical expertise, personable service, and quick


response. We welcome the opportunity to discuss your needs and objectives to support your product performance and reliability improvements. The website is at www.drtlonline.com.

16

Mark SniderPresident and Founder ERAI IncPresident and Founder, ERAI Inc.

Company: ERAI Inc.Speaker: Mark SniderTitle: President and FounderWebsite: www.erai.comEmail: [email protected] | [email protected] @ERAI_Inc

About ERAI Inc.ERAI is a global information services organization that monitors, investigates, reports and mediates issues that are affecting the global supply chain of electronics ERAI is the industry'smediates issues that are affecting the global supply chain of electronics. ERAI is the industry s leading source of risk assessment information and insight enabling companies to analyze risk mitigation on vendors, customers and parts. As an organization, we utilize the power of partnership by uniting our Members through data sharing and knowledge, which in turn provides critical information services to our Members.


ROUND 1: Issues & ImplicationsROUND 1: Issues & Implications•U.S. Defense Authorization Act of FY 2012•Whitehouse Bill and the Levin / McCain Amendment •Electronic Recycling, Waste and Counterfeits•The Role of Exports of Used and EOL Products •Counterfeiting / Intellectual Property Rightsg y g•China’s Role in the Electronics Supply Chain •Asia-Pacific Commodity /Sourcing Concentrations•Potential Implications of Counterfeit Legislation •Globally Integrated Supply ChainGlobally Integrated Supply Chain •Franchised, Authorized, & Independent Distribution •Counterfeit Electronics & Component Obsolescence•Supply Chain and Counterfeit Risk Mitigation


Marina MalenicAviation Reporter Jane’s Defence WeeklyAviation Reporter, Jane s Defence Weekly

Company: IHS Jane’sSpeaker: Marina MalenicTitle: Aviation Reporter, Jane’s Defence WeeklyWebsite: www.janes.comPhone: 800.824.0768Email: [email protected] | [email protected]

@IHSJanes@JDefenseWeekly


Panelist will provide prepared remarks on the following issues:

• The U.S. Defense Authorization Act of 2012The U.S. Defense Authorization Act of 2012• The Whitehouse Bill• The Levin / McCain Amendment • Counterfeit Electronics Provisions


U S D f A th i ti Bill f FY2012U.S. Defense Authorization Bill for FY2012

• U.S. Senate passed $662 billion pdefense authorization bill for 2012• Approved via 93-7 vote

• $527 billion for Pentagon's base budget

$117 billion for war spending• $117 billion for war spending• $1 billion less than Pentagon’s request

• $17 5 billion for defense programs• $17.5 billion for defense programs• Overseen by Department of Energy


U S D f A th i ti Bill f FY2012U.S. Defense Authorization Bill for FY2012

• In defiance of a White House veto threat, includes a provision on terrorist suspects that would require military oversight of detainees.

• Includes a measure that would make the head of the National Guard a member of the Chiefs of Staff--a move opposed bythe Chiefs of Staff--a move opposed by the panel’s existing members.

• Another amendment would accelerate the Pentagon’s deadline for a statement of budget resources, moving it up three years to September 2014.


"Counterfeit parts i ipose an increasing

risk to our national security to thesecurity, to the reliability of our weapons systems p yand to the safety of our men and women in uniform.”

Arizona Senator John McCain


Arizona Senator John McCain

C t f it L i l ti H W G t HCounterfeit Legislation – How We Got Here• In March 2011, Senators Levin & McCain announced a Senate Armed Service Committee

(SASC) investigation into counterfeit electronic parts and the risks they pose to the(SASC) investigation into counterfeit electronic parts and the risks they pose to the Department of Defense (DoD) supply chain.

• In June 2011, Senator Whitehouse, proposed his own counterfeit bill, the Combating Military Counterfeits Act of 2011, to crack down on criminals who traffic in counterfeitMilitary Counterfeits Act of 2011, to crack down on criminals who traffic in counterfeit military goods/services.

• November 8, 2011, the SASC held a hearing with DoD contractors, industry associations and others in Washington, DC after which Senator Levin promised a swift government g p gresponse. It was revealed that 1,800 incidents and over 1M parts have been reported.

• November 29, 2011, the Whitehouse measure was amended to the McCain / Levin bill and then unanimously approved by the Senate. It has moved to the House for discussion.

• December 1, 2011, Senate passage of the Defense Authorization Act for Fiscal Year 2012

• Today, the Defense Authorization Act for Fiscal Year 2012 has been passed by the Senate and the House of Representatives and is under revision by conference committee


Senate and the House of Representatives and is under revision by conference committee

23

C l L i th L i M C i A d tCarl Levin on the Levin-McCain Amendment• Prohibits contractors from charging the Defense Department for the cost of fixing the problem when

counterfeit parts are discoveredcounterfeit parts are discovered. • Requires the department and its contractors whenever possible to buy electronic parts from original

component manufacturers and their authorized dealers or trusted suppliers who meet established standards for detecting and avoiding counterfeit parts.

• Requires military officials and contractors who learn of counterfeit parts in the supply chain to provide• Requires military officials and contractors who learn of counterfeit parts in the supply chain to provide written notification to the contracting officer, the Department of Defense Inspector General and to the Government-Industry Data Exchange Program.

• Requires the Secretary of Homeland Security to establish a methodology for the enhanced inspection of electronic parts after consulting with the Secretary of Defense as to the sources of counterfeit parts inelectronic parts after consulting with the Secretary of Defense as to the sources of counterfeit parts in the defense supply chain.

• Requires large defense contractors to establish systems for detecting and avoiding counterfeit parts, and authorizes reductions in contract payments to contractors who fail to do so.

• Requires DoD to adopt policies and procedures for detecting and avoiding counterfeit parts in its direct• Requires DoD to adopt policies and procedures for detecting and avoiding counterfeit parts in its direct purchases, and for assessing and acting on reports of counterfeits.

• Adopts provisions of a bill sponsored by Sen. Sheldon Whitehouse, D-R.I., to toughen criminal sentences for counterfeiting of military goods or services.

• Requires DoD to define the term “counterfeit part ” and at a minimum to include in that definition


• Requires DoD to define the term counterfeit part, and at a minimum to include in that definition previously used parts represented as new.”

24

A d t R i t Ti liAmendment Requirements Timeline

Contractor All contractors, subcontractors and Department of

Secretary of Defense shall implement a program for the improvement of contractor systems for the detection and avoidance of counterfeit electronic parts and suspect counterfeit electronic parts

Defense employees must provide a written report on suspect or detected counterfeit parts to the Inspector General of the Department of Defense within 30 DAYS

Department of Defense

Secretary of Defense shall revise the

The Secretary of Defense shall take steps to address shortcomings in Department of Defense systems for the detection and avoidance of

t f it l t i t d t t f it

270 Days

Secretary of Defense shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to address the detection and avoidance of counterfeit electronic parts

counterfeit electronic parts and suspect counterfeit electronic parts

270 Days

180 Days Promulgate the guidelines, policy statements, or amendments provided for in this Act

180 Days


Day 0 Day 180 Day 270

Kristal SniderVice President ERAI Inc and SAE International G 19 Committee MemberVice President, ERAI Inc. and SAE International G-19 Committee Member

Company: ERAI Inc.Speaker: Kristal SniderTitle: Vice President and member SAE Intl G-19 CommitteeWebsite: www.erai.comPhone: 239.261.6268Email: [email protected] | [email protected]

@ERAI_IncEmail: [email protected] | [email protected]


• Counterfeit ElectronicsCounterfeit Electronics• China’s Entry to WTO• Electronic Recycling and e-Waste


Counterfeit Incidents 2005-2008Defense Industrial Base Assessment: Counterfeit Electronics-Defense Industrial Base Assessment: Counterfeit Electronics

Copyright © 2011 ERAI Inc. All Rights Reserved.

ERAI’s Role in Combating Counterfeits


Counterfeit Incidents (ERAI, GIDEP) vs. Revenues ($Billions) from 2001 – 2011


ERAI Accounted for Over 90% of High Risk and Suspect Counterfeit Parts Verified and Reported from 2001-2011

What is Being Counterfeited

In a typical recent two weeks of ERAI provided data (Reported Companies)

Five suspect counterfeit shipments (3 integrated circuits, 1 transistor, 1 capacitor), $55,169.00

• 6,233 ICs at $44,154 = $7.08 per• 500 transistors at $1 015 = $2 03 per500 transistors at $1,015 $2.03 per• 200,000 capacitors at $10,000 = $0.05 per• These are just the companies that were reported by ERAI

members usually due to disputesmembers, usually due to disputes • These instances are seldom reported to GIDEP

Slide compliments of Fred Schipp-MDA

What is Being Counterfeited

June-July 2011 ERAI reported 186 suspect counterfeit parts186 suspect counterfeit parts

– Integrated Circuits – 81%• Processors/Controllers – 14%• Memory 12% (mostly FLASH)• Memory – 12% (mostly FLASH)• Transmitter/Receivers – 7%• Operational Amplifiers – 6%• Programmable Logic Devices – 5%• Digital Switches – 5%• Converters – 4%• Field Programmable Gate Arrays (FPGA)

– 4%– Discrete Transistors – 8%

Di t Di d 4%– Discrete Diodes – 4%– Capacitors – 4% (mostly aluminum

electrolytic)– Inductors – 1%

Slide compliments of Fred Schipp-MDA

The Effect of China’s 2001 Entry to the WTO?





Copyright © 2011 ERAI Inc. All Rights Reserved

Estimated units of E-Waste in the US

Copyright © 2011 ERAI Inc. All Rights Reserved

Who is exporting e-waste?

Electronic Wastei i• Place of Origin: South

Carolina United States Specifications4 40' High Cube containers of Computer Scrap weeklyComputer Scrap weeklyWe have 4 containers of Electronic Scrap weekly available for sale.Items include, CPU, servers, i i b d h icircuit boards, Cash Register (486dx2), cell phone, laptops, non-working lcd, etc.Please call Jon Hoant at 704-345-4786 to negotiate pricing. or e-mail me Thanks and have a great day!BillNT E t i


NT Enterprise

http://www.alibaba.com/product-free/103723094/Electronic_Waste.html

Paul E. HagenPrincipal Beveridge & Diamond P CPrincipal, Beveridge & Diamond, P.C.

Company: Beveridge & Diamond, P.C.Speaker: Paul E. HagengTitle: PrincipalWebsite: www.bdlaw.comPhone: 202.789.6000 (Company) | 202.789.6022 (Direct)Email: [email protected]: [email protected]


• Exports of Used and EOL ProductsExports of Used and EOL Products• Take-Back laws & International Waste Shipment regimes• The Responsible Electronics Recycling Act• China’s Import Controls on Used Equipment and e-Waste


Exports of Used and EOL Exports of Used and EOL Products Products

New product take back laws and New product take-back laws and expanding customer demands in key markets are directing larger volumes of equipment toward recycling and reuse.equipment toward recycling and reuse.

National laws often impose requirements on the collection, storage, recycling and export of wastesrecycling and export of wastes, including some e-wastes.

E-waste exports are a priority concern f th U S d thfor the U.S. and many other governments with significant initiatives underway within the Basel Convention.

40

Link between U.S. exports of e-waste and counterfeit problem?

Take-back Laws for ElectronicsTake back Laws for Electronics

Evolving International Waste Evolving International Waste Shi t R iShi t R iShipment RegimesShipment Regimes

The Basel Convention (global)178 Parties (but not the U.S.)

OECD Co ncil Decision C(2001)107/FinalOECD Council Decision C(2001)107/FinalOECD Expansion (e.g., Chile, Israel)

Other “Article 11” Agreements (e g U SOther Article 11 Agreements (e.g., U.S. bilaterals)

EU Waste Shipments Regulationp gRegulation (EC No. 1013/2006) effective 2007EU WEEE Directive Recast

42

Exports of Used and EOL ProductsExports of Used and EOL Productspp

• Basel Convention parties moving to gclassify many types of WEEE as hazardous wastes subject to controls and trade bans.

• Negotiations on whether used equipment intended for repair/reuse must be managed as “waste.”g

• E-waste technical guidelines considered at COP-10 in October with negotiations continuing in 2012.negotiations continuing in 2012.

• New logistical challenges, trade bans and compliance costs for managing used and end-of-life electrical and

43

used and end of life electrical and electronic equipment world-wide.

EE--waste Exports: U.S. Regulationwaste Exports: U.S. RegulationEE waste Exports: U.S. Regulationwaste Exports: U.S. Regulation• Exports of “Hazardous Waste” regulated under RCRA.p g• Separate EPA rules governing exports of certain waste

for recycling to OECD countries. • EPA CRT Rule

– Notice and consent requirements for exports destined for recyclingfor recycling

– One time notice to EPA and recordkeeping requirements for exports destined for reuse

• E-waste exports an EPA policy and enforcement priority.• U.S. subject to Basel Convention non-party trade ban.

44

H.R. 2284: The Responsible Electronics H.R. 2284: The Responsible Electronics R li A t f 2011R li A t f 2011Recycling Act of 2011Recycling Act of 2011

• Introduced by Reps. Green (D-TX) and Thompson (D-y p ( ) p (CA) on June 23, 2011.

• Proposes to prohibit the export of e-waste to developing nations that are not members of the OECD or the EU, ornations that are not members of the OECD or the EU, or Liechtenstein.

• Establishes an expansive category of “restricted electronic waste” that cannot be exported from the U Selectronic waste that cannot be exported from the U.S. to these developing nations.

• Requires notice, prior written consent, and licensing to t d l t i th t t f thexport any used electronics that are exempt from the

export prohibition.• Effective 2 years after the date of enactment.

45

y

China Import Controls on Used China Import Controls on Used i t di t d ttEquipment and EEquipment and E--wastewaste

• Article 25 of the Solid Waste Act of the People’s pRepublic of China – Prohibition on import of solid waste that is unusable as raw

materials or cannot be used in a hazard-free mannermaterials or cannot be used in a hazard free manner– Catalogue of Solid Waste Prohibited for Import– Catalogue of Restricted Wastes that can be Used as Raw

Materials (imports allowed with approvals of AQSIQ and MEP)Materials (imports allowed with approvals of AQSIQ and MEP)– Catalogue of Automatic-Licensing Solid Waste Imports that can

be Used as Raw Materials

• Measures for Administration of Import of Mechanical and Electrical Products identifies used products destined for repair/refurbishment that can be imported under a p pMOFCOM-led program, subject to approvals.

46

Sarah McDowallSenior Analyst Country Intelligence Asia Pacific IHS Global InsightSenior Analyst, Country Intelligence – Asia Pacific, IHS Global Insight

Company: IHS Global InsightSpeaker: Sarah McDowallTitle: Senior Analyst, Country Intelligence – Asia PacificWebsite: www.ihsglobalinsight.comPhone: 781.301.9325 (Company) | +44 203.159.3376 (Direct)Email: [email protected] | [email protected]

@ihsglobalinsigh


• PELTOS Country Intelligence


PELTOS Country Intelligence• Political, Economic, Legal, Tax, Operational, Security

• Country Risk Ratings• China’s Counterfeit Problem and IPR• Trends and Outlook


Rating ComponentsInstitutional permanenceRepresentativenessPolitical RepresentativenessInternal political consensusExternal political consensusDegree of market orientationPolicy consistency and forward planningEconomic Policy consistency and forward planningDiversity and resilience of economyMacroeconomic fundamentalsLegislationTransparencyLegal TransparencyIndependenceExperienceCoherenceF iTax FairnessLevelEffectivenessAttitudes to foreign investmentI f l liOperational Infrastructural qualityLaborBureaucracy and corruptionCivil unrest


Security CrimeTerrorismExternal security threats

C t Ri k R tiCountry Risk Ratings


Chi ’ C t f it P blChina’s Counterfeit Problem

• Key Factors

• Manufacturers want to reduce costs and maximise profits• IPR protection as a relatively new concept• IPR protection as a relatively new concept• Gap between quality of legislation and implementation• Lack of Political will• Corruption• Mentality of “Catching up with the West”


T d d O tl kTrends and Outlook

Short-termShort-term

• More high profile government crackdown campaigns on intellectualproperty violationsproperty violations

Long-Term

• Hard to resolve problem while China remains a one-party state withweak of rule of law

• Problem should becomes less acute as China moves from imitativeto innovative stage of development


g p

51

Thomas J. Dinges, CFA Global EMS & ODM Research Practice IHS iSuppliGlobal EMS & ODM Research Practice, IHS iSuppli

Company: IHS iSuppliSpeaker: Thomas J. Dinges, CFAgTitle: Global EMS & ODM Research PracticeWebsite: www.isuppli.comPhone: 310.524.4007Email: [email protected]

@iSuppli


• Worldwide Electronics Market Shares


Worldwide Electronics Market Shares• China’s Role in Global Electronics• Asia-Pacific Commodity and Sourcing Concentrations• Globally Integrated Supply Chains


China’s growing share of the l b l l t i k tglobal electronics market


Why is China so dominant in l t i f t i ?electronics manufacturing?

• Historic direct labor rates were materially lower• “Endless supply of low-cost labor” was a key early selling point• Lack of potential for work stoppage

• Robust supply chains established locally in China• Robust supply chains established locally in China• Primary components up through packaging locally sourced in China• High value components delivered and warehoused locally

• Productivity and in some cases automation that rivals many Western world capabilities• Heavy capital investment over the past two decades as• Heavy capital investment over the past two decades as

predominantly Western companies “chased cheaper labor” to improve product margins


China’s future electronics growth i t i d t i l d i lis auto, industrial and wireless

Electronics revenue in China increased 18% per year from 2000 to 2010 and reached $502.2 billion driven by auto, wireless and

data processing. Growth is estimated at 8% from 2010-15 driven


p gby industrial, auto and wireless.

.

What is China’s future role in l t i f t i ?electronics manufacturing?

• Primary role will shift from provider of lower cost, lower value bl ti f i d t iassembly operations for many industries

• Key focus on supplying local market needs• Technology transfer and higher value-added production come into focusgy g p

• Some industries will slow investment in country• Combination of higher labor rates and potentially higher currency cannot

offset productivity enhancements due to stable local supply chainoffset productivity enhancements due to stable local supply chain• Existing infrastructure modified for higher value add local supply

• Consumer-focused industries likely have no choice• Highly attuned in-country supply chain• Product shipping/logistic networks would be challenged to replicate

elsewhere


The global electronics supply h i i t ll b t Chichain is not all about China

Japan• 21% of Semiconductor Supply

49% f O ti l C t• 49% of Optical Components• 57% of Image Sensors• 40% of Microcontrollers• 33% of Display Drivers• 60% of Silicon Wafers• Key Materials and Chemicals

South Korea• 59% of DRAM• 49% of Data Flash Memory• 27% of Display Drivers• 18% of Small/Medium LCD Panels• 51% of Large LCD Panels51% of Large LCD Panels

Taiwan (Hsinchu)• 67% of Pure Play Foundry

(Globally: 150 Fabless Semiconductor Firms > $30M)• 24% of Semiconductor Supply• 37% of Display Drivers• 37% of Display Drivers• 58% of Small/Medium LCD Panels• 34% of Large LCD Panels

China (Shanghai)• 80% of Mobile PCs


5757

China (Shenzhen)• 25% of Mobile Handsets

Thailand• >25% of HDD production

Gl b ll I t t d S l Ch iGlobally-Integrated Supply Chains


5858

Glenn BassettVice President Supply Chain IHSVice President, Supply Chain, IHS

Company: IHSSpeaker: Glenn BassettTitle: Vice President, Supply ChainWebsite: www.ihs.comEmail: [email protected] | [email protected]

@IHS_SupplyChain


• Global Silicon Markets and OEM Spendp• Defense Electronics & Program Extensions• Franchised, Authorized Sources of Supply• How Trusted Channel Integrity is Broken


Where is the silicon going today?Faced with constraints, who gets manufacturers’ attention?Faced with constraints, who gets manufacturers attention?


Source: IHS iSuppli 2011

Top 20 Global OEM SpendersConsumer electronics OEM are at the front of the line

20,0002010 2011

Consumer electronics OEM are at the front of the line

12 000

14,000

16,000

18,000

pend

ing

olla

rs)

2010 2011

6 000

8,000

10,000

12,000

cond

ucto

r Sp

Mill

ions

of D

o

0

2,000

4,000

6,000

Sem

ic (M

0

wle

tt-Pa

ckar

d

ng E

lect

roni

cs

Appl

e

Del

l

Nok

ia

Pana

soni

c

Sony

n Te

chno

logy

Leno

vo

Acer

G E

lect

roni

cs

Mot

orol

a

Tosh

iba

RIM

isco

Sys

tem

s

NEC

Fujits

u

SanD

isk

Hita

chi

tek

Com

pute

r


Hew

Sam

sun

King

ston LG C

i

Asus

t


Defense A Small Slice of the PieMilitary / Aerospace Application only 1.9% of 2010 marketMilitary / Aerospace Application only 1.9% of 2010 market

Global Semiconductor Market in 2010 = $304B

Data Processing

Automotive Electronics7.5%

Industrial Electronics7.3%

Military / Aerospace1.9%

Data Processing38.0%

Consumer Electronics19.1%

Wired Communications6.3%

Wireless Communications


Wireless Communications19.8%

62


Despite Program ExtensionsService Life ExtensionsService Life Extensions

• Air• B-52 Extended from 2025 to 2040 in 2002 - Boeing• F-15 A-D USAF could extend by 15 years – Aviation Week• UH-60A/L Blackhawk extends life to 2025 – Sikorskyy• C-17 likely be extended from 2025 to 2050

• Land• Equipment used at higher operational rates than peacetime• Equipment used at higher operational rates than peacetime

requiring more repairs & overhauls – Sep 2007 CBO study

• SeaDDG 51 & T id t b t d d f 30 t 40• DDG-51s & Trident subs extended from 30 years to over 40

• DDG-51 class ships extended from 35 to 40 years – CBO• Trident D-5 missile system extended from 30 to 40 years

E i i b il l 30 i 0 ld


• Enterprise carrier built to last 30 years is 50+ years old

No Supplier is Immune to Counterfeit RiskOpen market suppliers are not the only victims of risk

“It is not uncommon, however, f th i d di t ib t t

Open market suppliers are not the only victims of risk

for authorized distributors to purchase parts outside of the OCM supply chain in order to

fulfill customer requirements –58 t h t58 percent purchase parts

from other sources.

Specifically, 47 percent of th i d di t ib tauthorized distributors

procure parts from independent distributors, 29

percent procure from brokers, d 27 t fand 27 percent procure from

Internet-exclusive sources.”

Source: U.S. Department of Commerce, Office of Technology Evaluation,

C f S


Counterfeit Electronics Survey, November 2009.

Broken Channel Integrity Can OccurGenerally a result of mishandled inventory or procedures

•How is Channel Integrity Compromised?

Generally a result of mishandled inventory or procedures

How is Channel Integrity Compromised?• Returns Procedures

• Inventory Buys from CM/EMS/OEMInventory Buys from CM/EMS/OEM

• Supply Chain / Forecast Breakdown

• Materials Obtained Through Acquisition g q

•Why Do People Go To Open Market? • Two reasons only• Two reasons only

• Price

• Shortage

Copyright © 2011 IHS Inc. All Rights Reserved. 65Copyright © 2011 IHS Inc. All Rights Reserved.

Cause: Japan CrisisThe country produces over half of worldwide silicon wafers

Semiconductor Fabs1 Aizu Wakamatsu, Fukushima ON Semiconductor (Logic)

The country produces over half of worldwide silicon wafers

Silicon Wafer ProductionA Shin-Etsu Kamisu, Ibaraki

3

Fujitsu (Analog, Discrete, Memory) Texas Instruments (Analog, Optical)

2 Atsugi, Kanagawa Mitsumi (Analog, Logic)

3 Goshogawara, Aomori Renesas (Logic)

4 Gunma

A

B

C

D

Shin Etsu Kamisu, Ibaraki

Shin-Etsu Nishigo, Fukushima

MEMC Utsunomiya, Tochigi

SUMCO Yonezawa, Yamagata6

91011

13

ON Semiconductor (Discrete, Logic) Renesas (Analog, Discrete)

5 Hitachinaka, Ibaraki Renesas (Logic, Micro, Memory)

6 Iwate Fujitsu (Micro, Memory)

T hib (Di t )

Display Manufacturing Hitachi Displays Panasonic LCD Tohoku Pioneer

Resins, Films, Chemicals,Fukushima

EpicenterB

D

C

1

4

11

1214

Toshiba (Discrete)7 Kofu, Yamanashi Renesas (Analog, Logic, Micro)

8 Miho, Ibaraki Texas Instruments (Analog, Optical)

9 Miyagi Fujitsu (Logic, Micro)

Resins, Films, Chemicals, Copper Clad Laminate…

A

C

2 Tokyo7

8 512

Rohm (Discrete, Micro)10 Sendai, Miyagi Freescale (Logic)

11 Shiroishi, Miyagi Sony Semiconductor (Logic)

12 Tsukuba, Ibaraki Rohm (Discrete)


( )13 Tsuruoka, Yamagata Renesas (Logic)

14 Utsunomiya, Tochigi Matushita (Discrete)

66Source: IHS iSuppli 2011

Effect: Japan Crisis Integrity broken to accumulate higher priced, higher risk materials?

To what extent has your company’s increasednormal purchasing for commodities, materials,

How have prices changed for impacted commodities, materials, or components?

Integrity broken to accumulate higher priced, higher risk materials?

or components believed to be impacted?

Not at all 9.2%Somewhat 21.7%

Significant decrease in prices 0.0%Slight decrease in prices 1.7%

Moderately 34.2%Significantly 6.7%Very significantly 2.5%Not applicable 25.8%

No change to prices 24.2%Slight increase in prices 40.8%Significant increase in prices 4.2%Not applicable 29.2%

60%+45%

How have you or your suppliers increased the use of open market or other independent supply chains to source critical parts?

Which of the following do you believe are true?

Prices are/or will increase for commodities, materials, components or services we need

69.2%

Not at all 18.3%Somewhat 24.2%Moderately 10.8%Significantly 8.3%Very significantly 1.7%

Material shortages or obsolescence will increase

49.2%

Counterfeiting of electronics will increase 55.0%We will use new suppliers or open market sources to satisfy demands

27.5%40%+


Very significantly 1.7%Not applicable 36.7% Other 7.5%

Source: IHS Online Poll April 21-29

Dan EllsworthPresident and CEO World Micro IncPresident and CEO, World Micro, Inc.

Company: World Micro, Inc.Speaker: Dan EllsworthTitle: President and CEOWebsite: www.worldmicro.comPhone: 770.698.1900 (Company) | 770.698.1928 (Direct)Email: [email protected] | [email protected]

@WorldMicro


• Independent Distributors


p• Brokers and the “Open Market”• Implications of Defense Legislation• Methods for Selecting Trusted Independent Distributors


Implications for Independent Di t ib t & S li

D a n E l l s w o r t hP r e s i d e n t & C E OW o r l d M i c r o , I n c .

Distributors & Suppliers D e c e m b e r 8 , 2 0 1 1

Three types of distributorsTend to carry many in-stock SKUsIndependent distributors

May have contracts with manufacturers

Vendor neutral

Tend to have robust quality control systems

Tend to follow the “80/20” rule

Tend to buy unneeded excess from large

OEMs and CMs (e.g. IBM, GE)

Obsolete Parts – Factory Allocated – Custom – Excess Purchases – 3PL Stocking – Long Term Distribution

Tend to supply what franchises and brokers typically cannot:

Independent distributorsThe market from an independent distributor’s viewpoint

Low barrier to entry

Anyone can participate in the open market

Estimated >4,000 distributors/brokers worldwide

Some operate under many aliases

The open market supplies components p pp p

that are:

Legitimate | Tested | Untested | Out-of-spec or Non-

functional |Fakes: Remarked Reworked Blacktopped

©2011 World Micro, Inc.

functional |Fakes: Remarked, Reworked, Blacktopped

If you choose to participate you assume high risks

The open market is inherently risky“caveat emptor”

Open / broker marketOpen / broker market

Capital expenses for testing/detecting

Ob i ifi i bli h iObtain certifications, establish on-going

testing/compliance programs

Get on QSLDQ

Work with DoD, follow all guidelines

Work more closely with primes

& sub-primes

Have process for GIDEP reporting

Ali i h i iAlign with associations

like ERAI, IDEA etc…

The Defense Authorization BillSh t t i li ti

What does it mean toindependent distributors?

Short-term implications Get involved

Benefits of using independents in mission critical applications when regular supply is disrupted:

Why it’s Important

Parts will largely be inspected with robust equipment

Great reduction in counterfeit parts entering US bordersGreat reduction in counterfeit parts entering US borders

Demand for Chinese fakes disappears with modified

government purchasing habits

Provides a trusted supply channel

Benefits and implicationsh i i d d t

Human lives are at stake

when using independents

Certs: ISO9001,AS9120,ANSI20-20A,AS13485,

ITAR compliance

At Minimum

ITAR compliance

Certified and listed on the QSLD list

Well document QC process

Inspectors certified to IDEA-ICE3000 standard

Technology to inspect for and detect counterfeits

ERAI, IDEA, or other memberships

Strong financial background, D&B score

Open to onsite audit

Selecting a good independentDevelop a list of minimum requirements

Thank you for your time today

Implications on Independent Di t ib t & S li

D a n E l l s w o r t hP r e s i d e n t & C E OW o r l d M i c r o , I n c .

Distributors & Suppliers D e c e m b e r 8 , 2 0 1 1

Mark NorthrupVP of Advanced Technical Operations & Strategy IEC ElectronicsVP of Advanced Technical Operations & Strategy, IEC Electronics

Company: IEC ElectronicsSpeaker: Mark NorthrupTitle: VP of Advanced Technical Operations & StrategyWebsite: www.iec-electronics.comPhone: 315.332.4283 (Direct) | 315.573.2873 (Cell)Email: [email protected]

@IECElectronics


• Possible OEM, CM, Supplier, OCM Reactions to Defense Bill

Email: mnorthru@iec electronics.com

, , pp ,• Designing Out Obsolescence• Methods and Systems for Obsolescence Management


Obsolescence Reality?

Percent of Commercial Off The Shelf (COTS) parts that are out of production (un-procurable) versus the

12/8/2011 Created By: Mark Northrup 77 of 11

Percent of Commercial Off The Shelf (COTS) parts that are out of production (un procurable) versus the first 10 years of a surface ship sonar system’s lifecycle. (Courtesy of NAVSURFWARCENDIV Crane)

Source: The Engineering Economist, Vol. 51, No. 2, pp. 115-139, April-June 2006

Industry reaction legislation?

Supplier CM OEM

liability liability liability

li bilit li bilit li bilitliability liability liability

Tactical Response? Flow down through suppliersWaive liability? Flow down through suppliers Waive liability?

Refusal to provide obsolete parts End programs?


Industry reaction legislation?

Dual Path Approach? fund test audit and certify trusted obsolete parts suppliers fund test, audit, and certify trusted obsolete parts suppliers

design out obsolescence and / or decommission programs


b l ?Design Out Obsolescence ?

Th O l T C t Ri k Miti ti S l tiThe Only True Component Risk Mitigation Solution Risk Mitigation Testing Strategies (IDEA -1010, AS5553, Mil-Std-1580, Custom)

Obsolescence Mitigation Methods Test Plan Strategy

i.e. IDEA-1010, SAE AS5553/AS6171/AS6081, Mil-std-1580/883/750/202/981 for substandard parts1580/883/750/202/981 for substandard parts

Certification of Test Labs

i e ISO 17025 for technical capability proficiency and i.e., ISO 17025 for technical capability, proficiency, and repeatability

Data Archive of Component Analyses for Distribution

Enabled through Tools for EOL, Obsolescence, Counterfeit MitigationCounterfeit Mitigation


B i Mi i i S i h P di i Lif lBasic Mitigation Starts with Predictive Lifecycle Forecast for Part Analysis, Selection and RefreshComponent Years to End of Life (YTEOL) An estimated number of years before a component becomes obsolete.

Current 1 2 3 4 5 6 7 8CurrentAvailability

1 – 2 Years

3 – 4 Years

5 – 6 Years

7 – 8 Years

Available Available Available Available Available

Available Available Available Available Available

Discontinued Discontinued Discontinued Discontinued DiscontinuedDiscontinued Discontinued Discontinued Discontinued Discontinued

EOL Discontinued Discontinued Discontinued Discontinued

Available Available Discontinued Discontinued Discontinued

Available Available Available Discontinued Discontinued

End item Parts

Available Available Available Available Discontinued



E d itEnd item Requirement

Years

Wh t Ab t “Th U di t bl ”?What About “The Unpredictable”?Natural disasters, geo-political, economic instability…


“The Unpredictable” Makes PartThe Unpredictable Makes Part PCN/EOL Alerts a Critical Requirement

End of Life (EOL) Specific to RoHS/Pb-free Environmental Compliance

Component PCN 40% CAGR from 1997-2010 Lead-free creates 20% new EOL 2006-2007

2003 2004 2005 2006 2007 2008 2009

2,000

2,100

2,200

2,300

2,400

2,500

2,600

Semiconductor MSI (Right Scale)End of Life Parts % of Total Parts

Component EOL 40% CAGR from ‘97 to ‘10 Demand weakness 90% of EOL in 2009

.25

.30

.35

.40

.45

.50

.55

.60

.65

.70

.75

.80

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

IHS EOL insight found “demand side” primary reason for 90% of EOL


.00

.05

.10

.15

.20

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

g p yactions in 2009, vs. more typical 15-20% citations during 2004-2008

Millions Square Inches Silicon Processed - SemiParts: IHS Electronics Database

Source: Charts Courtesy of IHS Inc., 2011

Mitigation Should Always Consider PartMitigation Should Always Consider Part Alternates from Trusted Supplier Sources

Trusted


Original Component Manufacturer

Aftermarket Manufacturer

Authorized Sales / Distributor

Trusted Independent Distributors

Mitigation Should Integrate SuspectMitigation Should Integrate Suspect Counterfeit Part / Supplier Screening


Mark SniderPresident and Founder ERAI IncPresident and Founder, ERAI Inc.

Company: ERAI Inc.Speaker: Mark SniderTitle: President and FounderWebsite: www.erai.comEmail: [email protected] | [email protected] @ERAI_Inc


Suspect Counterfeit and High Risk Parts• Suspect Counterfeit and High Risk Parts• Counterfeit Requirements within Defense Legislation• Systems to Detect and Avoid Suspect Counterfeit Electronics• Vendor Screening and Identification of Trusted Suppliers


1,800 Counterfeit Cases at SASC HearingTotal Over 1 Million Individual Parts

“Failing to report suspect counterfeits andsuspect suppliers puts everybody at risk. Weneed to make sure our regulations requirecontractors who discover suspected counterfeitparts in a military system to report that discoveryto the military right away.”

Senate Armed Services Committee Hearing Opening RemarksSenate Armed Services Committee Hearing Opening RemarksSenator Carl Levin (D-MI) , Committee Chairman

Copyright © 2011 ERAI Inc. All Rights Reserved. 88

“Just One” Incident Can Cost Millions$ $Design interruptions can cost $0 to over $1M+

“According to the Missile Defense Agency, if the deviceshad failed, the THAAD missile itself would likely havefailed. The cost of that fix was nearly $2.7 million”

Senate Armed Services Committee Hearing Opening RemarksSenator Carl Levin (D-MI) , Committee Chairman( ) ,

Copyright © 2011 ERAI Inc. All Rights Reserved.THAAD Photo courtesy of Raytheon Company

Source: http://www.raytheon.com/newsroom/rtnwcm/groups/public/documents/image/rtn_missile_defense_gal_06.jpg

New Pending Legislation RequirementsExample from current defense amendment

• Require covered contractors to adopt and implement policies and procedures consistent with applicable industry standards, for the detection and avoidance of counterfeit electronic parts and suspect counterfeit electronic partsp p

• Mitigation of risks associated with parts obsolescence

• Development of lists of trusted and un-trusted suppliers• Development of lists of trusted and un-trusted suppliers

• Report and quarantine suspect counterfeit electronic parts


How Has ERAI Aligned Itself to Industry’s N d d Thi N L i l ti ?Needs and This New Legislation?

ERAI provides proven tools to mitigate risks on substandard parts, counterfeit parts, vendors and

teven customers.Trusted Suppliers High Risk Suppliers Suspect Counterfeit & High Risk Parts


ERAI’s Potential Trusted SuppliersMechanism to avoid blind open market purchases

Shown: SMT Corporation

Shown: World Micro, Inc.


Screening Potential Un-Trusted SuppliersValidated market activity of high risk suppliers


ERAI Has a Proven Model Whereby Anyone C R t S t C t f it P tCan Report Suspect Counterfeit Parts


Over 90% of 5,000+ Verified Suspect C t f it P t I id t f ERAICounterfeit Part Incidents from ERAI

Source: IHS Inc. 2011


Source: IHS Inc. 2011

That’s over 25 counterfeit part incidents per week that ERAI reports to customers!

Incidents Offer Details To Help Others N tif Sh D t t & A id C t f itNotify, Share, Detect, & Avoid Counterfeits


In Seconds A Parts List Can Be Analyzed Industry Average: 0.5% – 5% Match to Reported ERAI Incidents


Join Me in Thanking Our PanelistsJoin Me in Thanking Our Panelists

Paul HagenPrincipalBeveridge & Diamond

Kristal SniderVice PresidentERAI, Inc.

Marina MalenicAviation ReporterJane’s Defense Weekly

Dan Ellsworth Tom DingesSarah McDowallSenior Analyst Country Dan Ellsworth

President and CEOWorld Micro, Inc.

Tom DingesAnalyst, EMS & ODMIHS iSuppli

Senior Analyst, Country Intelligence – Asia Pacific IHS Global Insight

Mark NorthrupVP of Advanced Technical Operations & Strategy

Mark SniderPresident and Founder

Glenn BassettVice President, Supply Chain


IEC Electronics. ERAI, Inc.IHS, Inc.

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How to How to receive this offer?receive this offer?

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ROUND 2: Questions & AnswersROUND 2: Questions & Answers


And finally…y

Thank You• Anne-Liese Heinichen• Bob Braasch

• Greg Sheppard• Greg Wood

• Robert Dennis• Seth DrewryBob Braasch

• Bob Whitcher• Dale Ford

D i Akh d

Greg Wood• Janine Militano• John Ward

J l G ll

Seth Drewry• Stephanie Yanogacio• Tevia White-Arnold

U T d• Damir Akhoundov• Diane Janeway• Glenn Bassett

• Jolene Gulley• Linda T. Lam• Monica Engels

• Uwe Trode• Zbyszko Tabernacki


For More InformationFor More Information

Send questions and requests for information to:q [email protected]

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