NEC has told the federal government that a greater focus on commercialising Australian communications research and development is required to get multinationals to invest here.

The possibility of an industry based on photonics has prompted several universities to offer courses on the subject.

Semiconductor worldwide sales fell 42% in August as demand for chips used in products ranging from computers to mobile phones declined, the Semiconductor Industry Association said. September sales may also have declined, the group said.

Redfern Polymer Optics, a developer and manufacturer of polymer planar and fibre components and polymer optical fibers, has just announced its formal launch. The company has raised $7.5 million in seed funding, mainly from Redfern Photonics.

A $34 million funding injection has been received by Sydney-based Cap-XX, developer of a power source for next generation mobile devices.

Hewlett-Packard has reached agreement to take over CSC's New Zealand business. The purchase has been on the table for a while and terms and conditions have reportedly been agreed.

Marconi has cut 70 Australian staff and is consolidating its three divisions into one organisation for Australia and New Zealand.

Worldwide semiconductor sales may decrease 34% in 2001 after terrorist attacks stalled shipments last week and may hurt consumer purchases, market researcher IC Insights, said. This follows last weeks report that sales would increase in 2001.

The manufacturing sector has recorded its first quarter of positive growth in nine months, but the US tragedy, the Ansett collapse and falling semiconductor sales could impact in coming months.

A set of three Australian MultiBeam earth station antennas were installed at satellite control facilities in Luxembourg. The successful installation is opening up more opportunities for the Australian made antennas, CSIRO scientist, Dr Trevor Bird, said.

AEEMA will hold a series of free seminars at the Austronics, Electrix, and Automate Australia 2001, which will be held at Sydney Convention & Exhibition Centre on 18-20 September.

The semiconductor market will grow 23% in 2002 to $374 billion, buoyed by this year's inventory cutting and renewed consumer demand, according to US technology market forecaster, Semico Research.

Future Fibres has raised $5 million to allow the company to expand its fibre optic sensing equipment into the US.

Manufacturers are turning to the domestic market to maintain output, given the local economic climate compared to that of Australia's major export destinations. The Australian Industry Group's latest Performance of Manufacturing Index showed strengthening activity through 2001, and with the recent cut in interest rates stimulating demand and encouraging investment, the domestic outlook is increasingly positive.

Australia will become a centre of excellence for Damovo, formerly the direct sales and services arm of Ericsson Corporate Networks. With 180 staff, growing to 500, it will provide expertise in call centre technology and installation to markets around the world.