UTStarcom to outsource manufacturing operations to Sanmina-SCI

Under the terms of the agreement, Sanmina-SCI will provide full electronics manufacturing services for UTStarcom's system products currently being built in UTStarcom's Hangzhou facility. These services include new product introduction support, material sourcing and procurement, printed circuit board assembly, system integration and testing, final pack-out and delivery. Increasing UTStarcom's ability to manage demand swings, the flexible cost structure of this outsourcing agreement matches UTStarcom's volume of orders and allows for a faster cash flow cycle and lower working capital usage. "We are very pleased that UTStarcom has selected Sanmina-SCI as their electronics manufacturing services provider. We look forward to utilizing our vertically integrated suite of services including NPI, material procurement, manufacturing, system integration, and direct order fulfillment to bring value to our relationship. This strategic relationship allows us to grow in the networking market in the East China region," said PK Chan, executive vice president of Sanmina-SCI Greater China Operations.