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Electronics Production | September 20, 2006

BenQ Mobile might outsource<br>production to Jabil or Foxconn

BenQ is looking to outsource its mobile phone manufacturing because it has posted losses since it was acquired from Siemens AG last year. BenQ also plans to close a unit in Mexico.
According to a German magazine, representatives of the Taiwan-based parent company BenQ had already been negotiating for two months with Foxconn and Jabil Circuit. BenQ Mobile's management in Munich declined to comment on any possible plans to outsource production. No representatives from Jabil Circuit or Foxconn have been able to comment on this.

BenQ Mobile inherited production sites from Siemens, most of them in Germany. It recently extended a deal for longer working hours at two German production plants employing 1,900 staff until the end of the year.

BenQ also plans to close its Mexican mobile phone assembly plant, the German magazine reported.

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