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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Product Market Segments
Worldwide EMS / ODM five year forecasts deals blow to pure ODM model, reflects trends and challenges for industry, OEMs
SAE president talks hybrids, electric cars, China, supplier electronics and software expertise
We talk with Dr. Brown, president of the Society for Automotive Engineers (SAE), about SAE’s role and influence in the global automotive electronics sector; trends taking shape under the hood here and abroad, hybrid electric vehicles (HEV) and electric vehicles (EV), the importance for suppliers and component manufacturers to have strong capabilities in both electronics and software if they want to be competitive, and more.
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Mitigate risk of obsolete electronics components
Will today’s electronics components be available to support hardware through the entire life cycle? As time progresses, the cost of current components will increase as redesign costs decrease. Things become dicey when components in the decline phase support hardware in the maturity phase – where obsolescence directly impacts hardware sales. Action item list included.
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RoHS defense / aero risks in lead free assemblies
Vigilance in monitoring component manufacturers is key. Counterfeit parts likelihood increases during transition to lead free. Effort becomes more critical when considering use of commercial off-the-shelf (COTS) components. Telecommunications, medical electronics manufacturers face similar electronics assembly challenges.
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Understanding military, defense electronics manufacturing
U.S. military appetite for printed circuit boards is $1.1 billion with roughly $300 million (and growing) for military rigid-flexible printed circuit boards. To the benefit of some EMS providers (and disadvantage of many others) engaging new military and defense opportunities for EMS providers will be as much about knowledge, competency and trust as it will be about footprint or size. Defense electronics is a mentality, not a market.
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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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Breakdown of electronics end markets served by top EMS providers
Non-traditional EMS markets make up larger portion of business for smaller EMS providers such as Benchmark Electronics, Plexus. Automotive, medical electronics believed to be pivotal components to helping EMS market out of the recession. Also, covers Foxconn, Hon Hai, Jabil Circuit, Flextronics, Sanmina-SCI, Celestica.
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Semiconductor shortages pave road for China
Turns out we could be in for a long shortage in the semiconductor sector. Some analysts and investment bankers say one thing, semiconductor manufacturers and other analysts say another thing. Who is right? And, what has China got to do with this?
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iPhone 4 smartphone success driven by apps, platform, loyalty
Overall mix creates true differentiation in marketplace. Channel check of 100 stores reveals iPhone 4 demand outstripping supply across several regions. Apps growing 10% to 20% monthly with majority of downloads costing $9.99. Most widely deployed smartphone OS is Symbian followed by Blackberry OS then iPhone OS. EMS provider Pegatron to develop CDMA version.
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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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