Electronics Production | April 28, 2008
EMS in Asia
The trend for EMS companies to concentrate their volume manufacturing in low-cost countries is still going strong. China is firmly established as the leading country for manufacturing thanks to its massive home market, low prices, and developed infrastructure.
About half of the slightly over one billion mobile phones produced worldwide in 2007 were made in China. India has rapidly become more prominent as an important manufacturing country alongside China. Vietnam has also started to attract investments, as especially the Asian companies are searching for alternatives for China. Other EMS Locations In addition to Hungary, the Czech Republic, Poland, and Romania, as well as other Eastern European countries such as Slovakia and the Ukraine have become appealing alternatives as countries for manufacturing. Large EMS companies have, in a short period of time, closed down plants in high-cost Western European countries. Mexico competes with China for the North American market, especially with lower transport costs and shorter delivery times. In South America, Brazil remains a key manufacturing country thanks to its growing home market and customs practices. Elcoteq is well established in Asia with three factories in China, one in India, and sales and customer support offices in Korea, Japan, and Hong Kong, with fully operational facilities close to the place where its customers want to be and want to do business. Low manufacturing cost has been one of the significant factors in Asia. Nevertheless, Elcoteq believes that it is no longer the only factor involved in making outsourcing decisions. As communications technology products evolve at a rapid pace with increasing complex designs and shorter lifecycles, manufacturing speed and accuracy must stay at a high level. The EMS has to integrate sub-systems to reduce complexity for the OEM and provide more flexibility. This means having design capabilities, lowering total cost of ownership (TCO), and having a thorough understanding of the market dynamics affecting the OEM. By Carsten Barth, Elcoteq Click here to read the Elcoteq Blog