* Solectron continues to lose market share in the industry as it recently reduced its outlook for the fourth consecutive quarter. Inventory management has improved slightly. The company presents a good balance sheet with $1.7 billion cash and ~$1 billion net cash. Meanwhile, the company recently reported a $20 million ‘revenue offset’ which is a fee paid to a customer for the privilege of doing business. This could be reason to be concerned as it could mask the company’s ability to truly be profitable.
* Nokia brings Sanmina-SCI base station programs back in-house. It is believed excess internal Nokia capacity was part of the decision. One point this highlights is that excess capacity internal OEMs can have adverse impact on all EMS providers, especially if the cost benefits of outsourcing for the OEM are less than significant.
* Asustek and Advantech announced a recent share exchange at a ratio of 1 Asustek share to 1.13 Advantech shares. It is believed Asustek will benefit from ODM business in industrial computing and control-automation systems, while Advantech will leverage Asustek’s R&D, cost control, and component procurement capabilities for motherboards.
* Flextronics announced plans to set up an industrial park in southern India. The park will have plastics molding, enclosure integration, PCBA, and logistics capabilities. The facility will ultimately produce telecom equipment for companies such as Nortel and help supply infrastructure for the growing demand for wireless in India.
VentureOutsource.com, October 2005
Get list of EMS manufacturers for your requirements (Its free)
Save time and money. Find quality EMS manufacturers. Fast. Venture Outsource has a massive, global database of contract electronic design and manufacturing capabilities. Speak with a Provider Advisor.
“Was able to very quickly find details on the important elements of setting up EMS and ODM partnerships, talked with an advisor for personalized info on quality providers matching our requirements while getting up to speed quickly about the industry and connect with key staff from like-minded companies and potential partners. Great resource.”
— Jeff Treuhaft, Sr. Vice President, Fusion-IO
Advisors tell you matches we find for your needs, answer your questions and, can share EMS industry knowledge specific to your industries and markets.
