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Electronics Production | January 23, 2009

Taiwanese EMS-providers cautious over Flextronics' policy shift

Taiwanese EMS-providers, as well as network equipment makers are cautious over a possible policy change by EMS-giant Flextronics.
Market reports indicate that Flextronics, largest supplier for Nortel, may cut down on business relations with Nortel, reports DigiTimes. As reported earlier, Nortel has committed to the purchase US$120 million of existing inventory by July 1, 2009 as well as to make quarterly purchases of other inventory based on agreed payment terms and pricing.

However, Flextronics is said to consider order cut backs from Nortel to minimise operating risks. This in turn will force Nortel to look for alternative suppliers, such as Taiwanese EMS-providers and network equipment companies. Some of these already have business relations with Nortel, the report continues.

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