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Trends & Observations

End of an era as Japanese earthquake forever changes face of semiconductor chip manufacturing industry

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The world can no longer rely on single source semiconductor manufacturing. Protecting semiconductor manufacturing capabilities should be likened to oil-producing countries protecting their natural resources.
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2011 Report: China manufacturing hourly labor rate, compensation costs impact EMS

China’s hourly manufacturing labor rates are far below rates in Japan ($27.80) and Taiwan ($8.68) but roughly on par with nations like the Philippines ($1.68). China manufacturing compensation costs slightly higher than those in India. Many EMS / ODM companies in China, especially those making PCs, are moving operations inland.
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Personal perspective from Japan on Fukushima nuclear disaster

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Tokyo Electric Power Company (TEPCO) cannot deny the meltdown and fission. It will take several months to terminate the release of radioactive materials from the facilities and several years to remove the contamination from the area.
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80 Metrics to focus EMS provider materials management and increase EMS profits

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The electronics manufacturing services (EMS) business can be a zero-sum game for many EMS providers given many EMS providers often take on new OEM programs at a loss or, in some best case scenarios, with hopes just to break-even until cost-savings can be designed into products and manufacturing efficiencies can start to take hold.
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VIDEO – Defining disaster in Japan: Impact on Japanese and global electronics industry supply chains

Japan represents 10% to 15% of global electronics demand but 16% to 30% of electronics component supply. OEMs with meaningful cash positions are trying to pull in orders, buying up available component supplies. Taiwan printed circuit board companies like Kinsus and Unimicron could see bigger negative impacts.
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EMS manufacturing site relocation and selection in North America

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Some states appearing to offer incentives for EMS providers and manufacturers are really just imposing more taxes. Understanding which states are more aggressive when it comes to incentives capabilities can be game changing in the decision-making process. Available incentives will …
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Understanding working with Chinese state-owned enterprises

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Your chances for success increase if you align your objectives with government of China’s local, regional or national pathway.
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RoHS Recast: What’s in store for 2.0?

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Anything not exempted from the scope of ‘Electrical and Electronic Equipment’ is subject to the Recast provisions. An entirely new eleventh category will be added to Article 2. Not a part of RoHS legislation, but closely linked to it, is EU CE marking.
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EMS industry job trends, salaries and 2011 hiring outlook

There are currently too many people in the EMS job market and not enough jobs. Read one opinion by a reader experienced in the recruitment industry and learn if you are being paid EMS industry market rates. Also, learn which EMS jobs are in demand plus how EMS compensation differs depending on EMS provider size. Many EMS industry candidates will accept $10,000 per year less in compensation to be part of an EMS provider culture with similar values. Would you?
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2011 Forecasts global EMS / ODM growth slowing with China no longer the exception

Margin improvement now a function of end-market mix. Given rise of material costs and wages in areas like China, 2011 margins are apt to be heading sideways or downward.
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