IDC’s five year forecast (2009 – 2014, see chart) for the worldwide EMS and ODM sectors, plus worldwide total EMS industry, reflects the cost (spend) for product outsource design and manufacturing services and MCOGs sourced to EMS and ODM companies across the Americas, Europe and Asia.
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Industry Pulse
Worldwide EMS / ODM five year forecasts deals blow to pure ODM model, reflects trends and challenges for industry, OEMs
Season Group EMS corner office on component shortages, trust, expansion
When asked about challenges facing the EMS industry near-term, Season Group’s Hung says the number one issue he sees is establishing a stable supply of quality material.
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ODM Wistron’s EMS v. Pegatron, Hon Hai
ODM Wistron branches into EMS. Read how well Wistron can compete against Pegatron and Hon Hai on the EMS model Hon Hai perfected.
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EMS provider OnCore CEO interview
OnCore electronics services CEO talk about end markets the provider serves and challenges taking place in industrial, medical and defense / aerospace electronics sectors.
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View from the EMS corner office with VirTex Assembly Services
With 2008 sales of $22 million, VirTex serves the instrumentation; computing, medical, and industrial electronics…
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The EMS corner office project launches with Western Electronics’ Rob Subia
Western Electronics CEO Rob Subia talks about hiring, OEM customer trust, and more…
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EMS, ODM recovery tied to consumer electronics
Hon Hai and several ODMs investing in optoelectronics to take advantage of growing LED TV market. OEMs increasingly turn to third parties for product design. ODM sector increases share of overall electronics contract manufacturing revenues to 45%. EMS industry expected to grow consistently for next five years, with 8% CAGR, ODMs with slightly stronger CAGR of 9%.
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EMS pricing assumptions and economic influences
EMS industry growth still largely tied to PC industry. Competition among EMS / ODMs will continue to keep prices and profit margins low leading to eroding ASPs that will continually challenge EMS and ODM providers.
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Mark Larson talks Digi-Key, semiconductors, electronics components, distribution
Larson says performance marketing is rapidly replacing relationship marketing. EMS providers and OEMs recognize committed inventory heavily buffered by uncommitted inventory. Semiconductor chips will continue to address increasingly specific needs of customers. Market forces putting severe competitive pressures on local distributors forcing re-analysis of business models.
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Semiconductors, printed circuit boards, computers raise Malaysian manufacturing
First three months of year shows 24% growth in sales value of manufacturing sector. Average sales value per employee in March was 26% higher vs. same month last year. Total number of employees engaged in manufacturing sector in March 2010 rose 1.1%.
