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Please read our latest Milwaukee Electronics Newsletter, which includes:

  • A Message from Rick McClain, President
  • Milwaukee Electronics Adds Customers in All 3 Facilities
  • San Diego PCB Design’s Love of New Challenges

 

Milwaukee Electronics Newsletter Q4 2019

 

Due to a recent US Supreme Court decision, sales tax rules on interstate commerce are changing. This means that very soon Milwaukee Electronics, including divisions Screaming Circuits, San Diego PCB Design and Automation Controls Group, will need to collect sales tax on all shipments into US states that we are registered to collect tax in. This impacts sales conducted over the Internet as well as non-Internet business. It impacts products we manufacture and services we provide. Organizations that are exempt from payment of sales tax will need to present proof of exemption.

Prior to this ruling, anyone in states that levy a sales tax was responsible for reaching out to their state and paying any sales tax liability directly unless Milwaukee Electronics had some form of physical presence in the state (for example, our Screaming Circuits division has been collecting California state sales tax for a while now due to the presence of California based sales reps).

The US Supreme Court ruling has already taken effect, and that effect is that individual states are able to define their own economic nexus based on a specified level of business activity.

As a result of the Supreme Court decision, individual states can now set their own definitions of economic nexus. We at Milwaukee Electronics, and divisions, are responsible for collecting taxes in states where we meet or exceed the economic nexus threshold. This applies to any business transaction with product shipping or services provided to those states, and the tax and liability is based on the shipping destination. None of this applies if your order is shipped to destinations outside the USA.

If you are exempt from paying sales tax, you can provide an exemption certificate from your state(s). Customers working with our Milwaukee, Tecate, San Diego and ACG branches, please send certificates to “AR.Milwaukee@MilwaukeeElectronics.com” Portland EMS customers, please send certificates to “AR.Portland@MilwaukeeElectronics.com.” Use the email subject line: “Tax Exemption Certificate.”

The short of it:

  • Starting very soon, Milwaukee Electronics, Screaming Circuits, San Diego PCB Design and Automation Controls Group will be collecting sales tax for all deliveries to states in which we are registered to collect sales tax.
  • If you are exempt from paying sales tax, please send us a copy of your tax exemption certificate(s) for any states that you have us ship product or deliver services to.
  • It is based on where we ship the boards or provide the service, not necessarily where you live.

You can read all 40 pages of the Supreme Court ruling here: https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf

Please note that we can not give legal advice on this matter nor can we help you acquire the certificate from your state(s). If you have more questions about how this affects doing business with us, please contact your program manager or customer service representative.

It can be rather complicated. The sales tax exemption and charge is based on where the boards are shipped. For example, if you live in Seattle, Washington and have the assembled boards delivered to yourself, you will need to have an exemption certificate from Washington state or pay sales tax at Seattle, Washington rates. (The rate calculation goes down to the zip code in many cases) If you live anywhere else, like Oregon, and have your boards shipped to Seattle, Washington, you will pay Seattle tax or need a Washington exemption certificate. If you ship to multiple states, you may need an exemption certificate for each state.

For services such as DFM, design or layout provided by our San Diego PCB Design or our Innovation Design Group, there are a handful of states that tax services. If you are located in Hawaii, South Dakota, New Mexico or West Virginia, you will need to provide a tax exemption certificate, or we may have to add sales tax to the invoice.

Oregon, Montana, Alaska, New Hampshire, and Delaware do not currently have a state tax so if your boards are being shipped into one of those states, you are in the sales-tax clear at this moment. No tax will be collected and no exemption certificate will be needed for shipments into those states. If anything changes with these sates, we will let you know.

This court ruling covers more than just the Internet. While our Screaming Circuits division business is largely conducted through an e-commerce website, a good portion of it takes place in the realm of phones and email. These tax changes cover all of both online and offline transactions.

We don’t have an exact implementation schedule yet, but it will happen within the next few months. We are collecting the exemption certificates now, so if you have or can get one, please do so as soon as possible and email it to us at the address listed above.

Please read our latest Milwaukee Electronics Newsletter, which includes:

  • A Message from Mike Stoehr, CEO
  • Tecate, MX Facility Technology Investment & Expansion
  • Test Engineering Optimizes Functional Testing

Milwaukee Electronics Newsletter Q3 2019

As we pass though the last month of Summer, Milwaukee Electronics shares a valuable market review.  While the supply chains of electronic manufacturers around the world are challenged by the impacts of component shortages, allocation, capacity & lead time issues; there are signs of stability, recovery and growth.

MLCCs

Multilayer Ceramic Capacitor (MLCC) inventory is beginning to build up, possibly due to over-ordering in the marketplace by end users and distributors.  Several key distributors are now holding stock on lines that have been on allocation over the past 18 months.  The problem of allocation has not resolved itself fully, but it is becoming a less critical issue as the market improves and smaller case sizes become more readily available.  Larger case sizes are still problematic, in part due to TDK and Murata obsoleting a large proportion of their MLCC catalog (over 241,000 and 9,000 product lines respectively).

 

Sales and Acquisitions

Infineon is set to acquire semiconductor company Cypress.  This will allow them to compete in the Electric Vehicle (EV) market and become a significant chip-maker in the global market. The deal is set to be completed by early 2020.

Marvell have sold their wireless and Bluetooth business to NXP for $1.76 billion which is set to complete by Q1 2020.

GlobalFoundries have agreed on the sale of their New York based 300mm fab to ON Semiconductor for $430 million. ON Semi will gain full operational control of the fab by the end of 2022, with GlobalFoundries manufacturing 300mm wafers on site until handover is completed.

 

Capacity and lead-time issues

There is a global shortage of Silicon Carbide (SiC) due to a limited number of vendors being able to produce the wafers. ST Microelectronics is strategically investing to ensure they have a supply chain that will be able to support the growing use of SiC in high power/high efficiency needed in consumer markets such as EV’s and the Internet of Things (IoT).

TDK and KOA have closed their order books whilst they battle to ensure continuity of supply to their customers with MLCC’s and commodity resistors. This is the same response as Murata, Rohm (resistor networks) and Vishay (passives).

  • Samsung continues to cite allocation on many of their MLCC lines however there is still evidence of stock availability in the marketplace.
  • Diodes Inc. are seeing allocation on many of their Zener diodes, bipolar and digital transistor and some general-purpose transistors.
  • Infineon MOSFETs are on allocation with short supply globally.
  • Yageo lines are more readily available with lead-times around 20 weeks.
  • TE connectors are experiencing lengthy lead-times and relays are on allocation.  This is most notable with circular connectors, TE’s Deutsch line and automotive connectors.
  • ST Microelectronics has partnered with Cree to supply Wolfspeed SiC wafers during a period of growth.
  • Analog Devices are experiencing production delays with lead-times on certain lines extending beyond 24 weeks and in some cases over 32 weeks.
  • MLCC pricing is stable despite the ongoing market conditions but is not decreasing significantly.
  • Analog Devices pricing (including Linear Technology lines) is expected to increase, and lead-times are still beyond those that are usually observed.
  • Infineon MOSFETS are on allocation (fueled further by the SiC shortage) and pricing is unstable, with increases observed during the last 6 months.
  • Murata filter pricing is set to increase.

 

 

Please read our latest Milwaukee Electronics Newsletter, which includes:

  • Message from Rick McClain, President & COO
  • FactoryLogix Implementation
  • Test Engineering Group wins
  • New NPI Manager named
  • Increased medical business in Oregon

Milwaukee Electronics Newsletter Q2 2019

Please read our latest Milwaukee Electronics Newsletter, which includes:

  • Message from Mike Stoehr
  • Supporting a Hot B2C Start Up
  • Test Fixtures for High Volume Production
  • Growth in the New Year
  • User Groups at San Diego PCB, LLC

 

Milwaukee Electronics Newsletter Q1 2019

Please read our latest newsletter for Milwaukee Electronics, which includes:

  • Message from Mike
  • Portland Facility Completes Transition to ISO 13485:2016
  • Agricultural Product Ramps Up
  • Cybersecurity & Compliance Enhancements
  • Screaming Circuits Engineering in Action
  • BioMEDevice Exhibit Big Success

Milwaukee Electronics Newsletter Q4 2018

 

Milwaukee Electronics’ Portland facility has completed its audit for the transition to ISO 13485:2016 and re-certification to ISO 9001:2015.

“Our internal team did a great job in supporting the transition to latest revision of ISO 13485. While the preparation done last year for the transition to ISO 9001:2015 helped, the two standards are no longer as closely aligned so there was still a significant level of effort required to ensure compliance with the standard’s requirements,” said Bob Willenbring, Milwaukee Electronics’ Corporate Quality Director.

The Portland facility was audited early in October and recommended for certification. There were three minor findings which have been corrected and will be submitted to the facility’s Registrar shortly.

The transition to the new standard more closely aligns the facility’s processes with FDA requirements in the areas of complaint handling, process validation and risk management.