Electronics Production | November 13, 2009
Regional footprint for EMS continues to move to Asia
Matt Chanoff, Chief Economist at InForum, described both TAM and electronics outsourcing to return to annualized growth of 5% in the next 12-24 months following an estimated 9% contraction for 2009.
InForum sized the total available market for the electronics manufacturing industry at $1.3T in 2008, estimates it to retract to $1.2T in 2009, and predicts growth to reach $1.4T by 2013. The EMS industry was sized at $127B in 2008, estimated to retract to $103B in 2009, and forecast to grow to $127B again by 2013. The ODM industry was sized at $116B in 2008, $107B for 2009, and forecasted to grow to $135B by 2013. A major influence on this year’s forecast was the manner in which InForum treated the revenues for Foxconn, which for the first time were not all included in the EMS sector, but broken out between the EMS and ODM industries. Mr. Chanoff identified the industry segments with the greatest outsourcing growth potential in this area to include automotive, medical and aerospace and defense. “Forecasting isn’t a perfect science,” commented Mr. Chanoff, “but I’m proud of our track record. We also make a point of being very transparent about our approach, and we focus on giving clients a broader picture, so that they can keep an eye on important growth drivers, integrate our forecasts into their internal planning processes, and improve their own forecasting.” Eric Miscoll, Sr. Analyst and contributing member of the InForum Forecasting team, stated that the regional footprint for electronics manufacturing continues its shift towards Asia, although somewhat less aggressively than in past years. This shift is still mainly driven by the search for low cost labor, readily available capacity. "Mitigating the shift to Asia is the rising cost of labor in China, OEM insourcing, and greater consideration of Total Cost of Ownership in outsourcing decisions", he continues in saying. Image Source: Wilson
NOTE continues to expand within medtech One of EMS provider NOTE’s Swedish manufacturing plants has received a first order of SEK 25 million (EUR 2.34 million) from a Swedish customer within the medtech segment. Delivery is scheduled for 2020.
Marvell layoffs in VT, NC and CA Days after the close of the acquisition of Avera Semiconductor on November 5, Marvell Semi filed a WARN notice with the State of Vermont, ahead of 78 permanent layoffs at its Essex Junction facility.
U.S. DoC extends Huawei license The United States Dept. of Commerce, through its Bureau of Industry and Security (BIS), has announced a 90-day extension of the temporary general license (TGL) to Huawei and certain non-affiliates.
Apple: Shovels up in Austin As part of its expansion plan in Texas, Apple has announced the beginning of construction at its new campus in North Austin.
Sponsored content by Z ElektronikaZ Elektronika opens new factory in Pécs To keep up with rapid growth of the company, on the 13th September Z Elektronika celebrated the grand opening of its new electronic design and manufacturing facility close to the highway in Pécs, Hungary, which adds new features and production site to its nearby location.
PARPRO makes NA capex investments Southern California-based PARPRO has made capital equipment investments scheduled to be operational this quarter at the company’s Mexico and California facilities.
Indium Corporation is ready for 2020 Chris Nash from Indium Corporation reviews 2019 - in many ways, a strange year. However, even with the geopolitical issues that the year has offered, Indium has done a good job staying on top of things.
Schmoll Maschinen GmbH settles for a record year Schmoll's soaring results for 2019 is tied to the high level of globally deployed machines, where Asia takes the lead.
Arch Systems partners with Flex for manufacturing data transformation Arch Systems, a provider of a machine-data-sensing platform, has entered into an agreement with global manufacturer Flex to supply real-time access to and analysis of manufacturing data at its facilitie
Sponsored content by EsemdaContract manufacturer Esemda opens new facility in Vilnius and expands EMS The new facility has been built with reserved space for future expansions. As Esemda constantly grows, it is of great importance to be able to rapidly increase production capacity in large volumes.
ZF and Wolong Electric form JV for electric motors ZF Friedrichshafen and China’s Wolong Electric Group are stepping up their existing cooperation. The two companies have signed an agreement to establish a joint venture that will produce components and electric motors for automotive applications.
Cicor on its venture into printed electronics In the first quarter of 2019, Swiss EMS provider, Cicor, opened a technology center for printed electronics at the Bronschhofen site in Switzerland - quite the investment and a completely new territory for the company. Evertiq had the opportunity to talk to Karl-Heinz Fritz, VP of Technology, about the strategy behind this.
TT Electronics steps up its US presence – acquires Excelitas unit TT Electronics has struck a deal to acquire a US based business that designs and manufactures power electronics for defence and aerospace markets, enhancing its ability to engineer complete power converters.
ABB partners with Exeger to speed up transition to clean energy ABB has entered into a new partnership with Sweden’s Exeger Operations AB. The partnership will enable Exeger to enhance the production quality its photovoltaic material at the company's Stockholm factory and also develop automation solutions for its new fully automated factory which will begin construction in the near future.
Rehm Thermal Systems intros 3-in-1 reflow solution Michael Hanke from Rehm Thermal Systems shows off the results of the company's development work.
Intel to reclaim No.1 semiconductor supplier ranking in 2019 IC Insights says that only three among the top-15 semiconductor suppliers are forecasted to show growth this year.
Veoneer joins Autonomous Vehicle Computing Consortium Veoneer has joined the Autonomous Vehicle Computing Consortium (AVCC) to speed autonomous driving vehicle development.
Ongoing trade issues have opened up Chinese market for Viscom According to Carsten Salewski, Chinas move towards more independence has resulted in more customers from the region; especially within the automotive sector.
Don't forget about human inclusion in industry 4.0 Michael Ford from Aegis Software is reminding the industry in the midst of connectivity that our most powerful asset is still the human employee.
East West Manufacturing acquires Adcotron EMS East West Manufacturing has acquired Adcotron EMS, a provider of specialized electronics manufacturing services, including advanced printed circuit board assemblies, box-build assemblies, testing, and new product introduction services.
Benchmark's Thailand facility earns MedAccred PCBA accreditation The EMS provider announces that its facility in Ayutthaya, Thailand has earned the MedAccred Printed Circuit Board Assembly accreditation.
HZO unveils larger HQ in North Carolina HZO, known for protective nano coatings designed to help electronics withstand corrosive liquid environments, held an open house at its new headquarters in Raleigh, North Carolina this week.
Luminator Technology relocates some production to Texas Luminator Technology Group has relocated production of its Apollo Video Technology RoadRunner mobile video security solutions to Luminator’s headquarters in Plano, Texas.
Kurtz Ersa invests heavily in development to stay on top With more than 30 percent of its employees involved in research and development, the company is making sure that it is able to respond to its customers needs at all times.
BMW's new battery cell centre to handle everything from material to prototyping The BMW Group is looking fortify its position in the world of electric mobility and has pooled its many years of experience with battery cells and extensive knowledge in the field in a new Competence Centre.Load more news