THE INCREDIBLE GROWTH OF ELECTRONICS MANUFACTURING OUTSOURCING Industry

THE INCREDIBLE GROWTH OF ELECTRONICS MANUFACTURING OUTSOURCING Industry

Electronics Manufacturing Services (EMS) is a term used to describe companies that design, manufacture, test, sell, and provide return / repair services to electronic components and assemblies for original equipment manufacturers (OEMs). The concept is also known as Electronics Contract Manufacturing (ECM).

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Some of the key players of Electronics Manufacturing Outsourcing Industry:

Foxconn, Flextronics, Jabil Circuit, Celestica, Sanmina-SCI, TT Electronics, Norautron, Zollner Elektronik, Universal Scientific Industrial (USI), Benchmark Electronics, EPIQ, Plexus, Solectron, Venture

Many consumer electronics products are made in China as opposed to other countries such as the United States because of the cost of maintenance, material availability, and speed. Cities like Shenzhen and Penang have become major manufacturing centers for the industry, attracting many consumer electronics companies like Apple Inc. Some companies, such as Flex and Wistron, are original design manufacturers and providers of electronics manufacturing services.

The EMS industry started after the late 1970s when Solectron was founded. At that time, most of the electronics manufacturing for large product runs was taken over by internal assembly. These new companies provided flexibility and eased staffing problems for smaller companies with limited editions. The business model for the EMS industry is to specialize in large economies of scale in manufacturing, raw material procurement and pooling of resources, expertise in industrial design and the creation of value-added services such as warranty and repairs.

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