Design Con 2015
Breaking News
User Rank
re: EMS industry at the crossroads?
junko.yoshida   7/19/2012 6:09:10 PM
This is really a good article. I do, however, have a question. The author notes that the trajectory of the consumer market will be ultimately a shift back to the OEM/ODM model. I don't quite get that. Every consumer electronics manufacturer I know has already left the manufacturing business -- mostly. Sony, Panasonic, JVC included. So, how will those CE vendors come back and tell the EMS guys, "We will take it from here"? But if the issue the author raises is about the EMS going up the value chain, I see that it's already happening. Look no further than the deal Foxconn made with Sharp.

Sr. Cota
User Rank
re: EMS industry at the crossroads?
Sr. Cota   10/24/2012 6:48:05 PM
Hello Junko, Sony has not left manufacturing business, it has its own manufacturing facilities as well as it is using EMS companies. In general, amount of outsourced LCD TVs, for all OEMs, is about 30%-35%, rest is in-house manufacturing.

User Rank
re: EMS industry at the crossroads?
DrQuine   7/20/2012 2:18:59 AM
One explanation for the low margins received by manufacturers is that they enjoy very high multipliers (high volume sales) with very low investments in R&D. If a vendor gets greedy and asks for high margins, the manufacturing business will go to the next manufacturer on the list. As household names in electronics keep going out of business, the relative security of high volume manufacturing becomes increasingly appealing as a business model for high quality nimble companies.

User Rank
re: EMS industry at the crossroads?
junko.yoshida   7/20/2012 6:12:09 PM
Ah, that does make sense. Thanks, DrQuine.

Top Comments of the Week
Flash Poll
Like Us on Facebook Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
<b><a href=Betajet">

The Circle – The Future's Imperfect in the Present Tense
The Circle, a satirical, dystopian novel published in 2013 by San Francisco-based writer Dave Eggers, is about a large, very powerful technology company that combines aspects of Google, ...

Max Maxfield

Recommended Reads From the Engineer's Bookshelf
Max Maxfield
I'm not sure if I read more than most folks or not, but I do I know that I spend quite a lot of time reading. I hate to be idle, so I always have a book or two somewhere about my person -- ...

Martin Rowe

No 2014 Punkin Chunkin, What Will You Do?
Martin Rowe
American Thanksgiving is next week, and while some people watch (American) football all day, the real competition on TV has become Punkin Chunkin. But there will be no Punkin Chunkin on TV ...

Rich Quinnell

Making the Grade in Industrial Design
Rich Quinnell
As every developer knows, there are the paper specifications for a product design, and then there are the real requirements. The paper specs are dry, bland, and rigidly numeric, making ...

Special Video Section
The LT8640 is a 42V, 5A synchronous step-down regulator ...
The LTC2000 high-speed DAC has low noise and excellent ...
How do you protect the load and ensure output continues to ...
General-purpose DACs have applications in instrumentation, ...
Linear Technology demonstrates its latest measurement ...
Demos from Maxim Integrated at Electronica 2014 show ...
Bosch CEO Stefan Finkbeiner shows off latest combo and ...
STMicroelectronics demoed this simple gesture control ...
Keysight shows you what signals lurk in real-time at 510MHz ...
TE Connectivity's clear-plastic, full-size model car shows ...
Why culture makes Linear Tech a winner.
Recently formed Architects of Modern Power consortium ...
Specially modified Corvette C7 Stingray responds to ex Indy ...
Avago’s ACPL-K30T is the first solid-state driver qualified ...
NXP launches its line of multi-gate, multifunction, ...
Doug Bailey, VP of marketing at Power Integrations, gives a ...
See how to ease software bring-up with DesignWare IP ...
DesignWare IP Prototyping Kits enable fast software ...
This video explores the LT3086, a new member of our LDO+ ...
In today’s modern electronic systems, the need for power ...