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Electronics Production | June 04, 2007

Top 25 outsourcing providers<br>surpass $200 billion

Manufacturing Market Insider has compiled its annual list of the 25 largest providers for outsourced electronics manufacturing. Consisting of both EMS providers and ODMs, the Top 25 outsourcing providers generated total revenue of $205.3 billion last year. What's more, Top 25 revenue increased from 2005 by 21.6%.

"Outsourcing of electronics manufacturing and related activities has rather quietly become a huge business on which many OEMs now depend. A 21.6% growth rate for the Top 25 shows how robust this outsourcing business is overall. Top 25 results also reveal the growing influence of Taiwan-based companies in the outsourcing space," said John Tuck, Manufacturing Market Insider. Taiwanese companies controlled a clear majority of Top 25 revenue in 2006. The 15 Taiwan-based companies in the Top 25 accounted for sales of $123.4 billion, or 64.8% of group revenue. According to MMI, Taiwan's predominant share results primarily from the rapid growth of the ODM business in Taiwan and the meteoric rise of one Taiwan-based company, Hon Hai Precision Industry. Top 25 outsourcing providers were ranked based on 2006 sales expressed in US dollars. In order, the top ten were Hon Hai, Flextronics, Asustek Computer, Quanta Computer, Compal Electronics, Solectron, Jabil Circuit, Sanmina-SCI, Celestica and Inventec. Five out of the ten companies are Taiwan-based. The Top 25 group consisted of 13 companies classified by MMI as EMS providers and 12 companies identified as ODMs. Combined revenue growth of the ODMs was nearly five percentage points higher than that of the EMS providers. Still, EMS providers represented a majority of Top 25 revenue.
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