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Electronics Production | July 13, 2007

Transfer of manufacturing to CEE increases<br>but what products are hot for east?

evertiq has earlier reported about the increasing production and design transfer to Eastern Europe but what kind of products will be transferred?
MHM's latest report about the production transfer to the CEE region indicates what type of products that are hot for the CEE region.

In addition to on-going EMS RFQ activity MHM has identified key OEM to EMS
production transfers in CEE region. MHM has detected 12 OEM companies that are planning to transfer to CEE EMS.

* Medical - Including a number of transfer options such as:

- PCBA transfer - 1 Medical OEM
- R&D/PCBA/Box Build from other OEM (CEE/Poland attractive)
- R&D transfer (Western Europe - could be used to funnel orders' to CEE)
- R&D/PCBA - Europe for R&D (Asia for production)
- R&D/PCBA/Box Build transfer to Asia in next 12 months
- OEM considering transfer to CEE (Big Medical OEM)
- PCBA/Box Build transfer (Asia)

* Industrial, Instrument, Control & Test - Mid tier EMS business such as

- Airport security equipment transfer to CEE subcontractor required
- Control and Automation equipment transfer to CEE EMS (Poland/Hungary &
SEA)
- Power Controls transfer to subcontractor

* Communications - A European strength

- Telecom company has ongoing transfers to Eastern Europe.
- Wireless ISP to transfer supplier to China
- Broadband equipment EMS (China)
- Viewing supply from additional CEE country

* Automotive - Viewing PCBA transfer in CEE

- Auto OEM with transfer to CEE, could be Hungary or Bulgaria

* Consumer

- Major TV set manufacturer transferring production to CEE based
subcontractor (PCBA +)

* Military and Aerospace

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