Menu


Taiwanese ODM competitive landscape shifts as new market sectors emerge

By VentureOutsouce.com Staff

Details below, a few of the top Taiwanese electronics original design manufacturers (ODM), with perspective major manufacturing locations, and some of the products / markets they serve at that production location.

The Taiwanese ODM and contract electronics manufacturing services (EMS) landscapes are changing. 5G networking technologies, smart factories combined with industry 4.0 technologies, and artificial intelligence are creating many ‘firsts’ and new ODM and EMS leaders in industry.

Venture Outsource has more information like this, and more. For more, call (888) 860-1193 or learn more here.

ODM LOCATION / REGION *CURRENT SECTOR
Hon Hai (Foxconn) Langfang smartphones
Zhengzhou smartphones
Chengdu call
Wuhan call
Chongqinq call
Shenzhen call
Yantai TV, game consoles
Kunshan Components
Vietnam call
USA call
Mexico call
Brazil call
Pegatron Shanghai, Kunshan call
Chongqinq notebooks
Suzhou call
Taiwan call
Indonesia call
Wistron Kunshan smartphone, notebooks, servers (more, call)
Zhongshan call
Taizhou optoelectronics
Chongqinq notebooks
Chengdu call
India smartphones
Quanta Shanghai notebooks, wearables, servers
Chongqinq call
Taiwan call
Compal Kunshan call
Nanjing call
Chongqinq tablets, notebooks, wearables…
Chengdu notebooks
Taiwan call
Vietnam call
Brazil call

*Where sector is indicated, does not include company interest/movement into emerging markets. Contact Venture Outsource for more information.

As demand for smartphones softens and gross margins take a hit, ODMs and EMS providers are diversifying outside of typical mass markets. (See Fig 1: iPhone gross margin profiles decline at select ODMs)

Fig 1

Detailed EMS and ODM company breakdowns available

As ODM margins continue to face pressure, alternative strategic focus for many ODM and EMS firms has steadily been aligning toward manufacturing trends in industry 4.0 / IoT and sensors, connected devices, EV and related, medical technologies, virtual reality (VR)/augmented reality (AR), to name a few areas.

EMS/ODM are also adding various types of services and technologies with the hope of enabling some providers to better position themselves to capture new markets and attract/expand their customer base. All of this is impacting both ODM and EMS customer supply chains and, how ODM/EMS industry providers present themselves in the market and sell their services.

RELATED
Customer concentrations for the Top 10 EMS providers, ranked by revenue

On this last note, EMS provider Jabil is moving toward less EMS manufacturing customer transparency. In competitive EMS manufacturing, OEM switching costs can be low for customers leaving EMS partners (some sectors). So EMS provider sales people try building stickiness relying on emotional aspects of OEM-EMS relations. EMS manufacturer Jabil is in a constant state of restructuring, trying to fend off competitors (with little differentiation success). OEMs should ask Jabil (and any other EMS provider under restructuring): how are EMS restructuring program costs tracked and managed? Its easy for EMS restructuring costs to overlap and become recurring if costs are not managed effectively.

Part of Jabil’s restructuring is also dividing its EMS business and DMS (e.g. ODM) business to claim some form of differentiation and tighter OpEx for investors, but this will not likely free up excess working capital at Jabil – verified by workflow analysis of costly IDL in EMS industry. Add to this, non-savvy OEMs will have difficulty comparing Jabil quotes to competing EMS quotes. (Read: OEM best practices for EMS manufacturing quotes)

Asia manufacturing sourcing

Readers interested learning more about specific ODM and EMS company services, product markets these companies serve, technology capabilities, competitive EMS and ODM differentiation factors, including competitive rankings, and more, can contact us for detailed info.

OEMs reading this can request a list of electronics contract EMS manufacturing providers in Asia (its free) that match your program requirements by clicking here, or you can also click on the map below.

SOURCING RELATED
Request list of EMS provider facilities in Silicon Valley
Request list of EMS providers anywhere (worldwide)

Alternatively, any website user can freely search our global directory of contract electronics solutions listings and contact companies directly. You can search by geography, services needed, and technology end-markets (or any combination thereof). Start your search and contact companies here.




Private message OEM peers. Access all content.

For electronic OEM professionals working in OEM companies. Connect with OEM peers and access exclusive content.

https://www.ventureoutsource.com/contract-manufacturing/taiwanese-odm-competitive-landscape-shifts-as-new-market-sectors-emerge/

Provider spotlight

About VentureOutsource.com

VentureOutsource.com is the leading online destination helping electronics OEM decision makers make more informed decisions and reduce risk. We offer educational Webinars, thousands of original articles and helpful tools, a community of influencers who understand the challenges facing your company today, and a comprehensive directory of electronics provider services.



Copyright Venture Outsource, LLC. All Rights Reserved
The material on this site is for informational purposes only and is not a substitute for legal, financial or professional advice. Distribution and use of this material are governed by our User Terms Agreement and by copyright law. By using our Website you agree to site Terms and Privacy policies. For questions please contact VentureOutsource.com at 1-888-860-1193 or visit www.ventureoutsource.com