Global EMS show signs of stabilization in Q2: iSuppli.Taipei, Oct. 6, 2009 (CENS CENS Censor CENS Center for Embedded Networked Sensing (UCLA NSF) CENS Censorship CENS Centre d'Etudes Nucleaires de Seclay ) -- The global EMS (electronics manufacturing services Electronic manufacturing services (EMS) is term used for companies that design, test, manufacture, distribute and provide return/repair services for electronic component and assemblies for original equipment manufacturers (OEMs). ), or contract electronics manufacturing This article presents a typical manufacturing process of an electronic assembly. Component manufacturing Components such as resistors, capacitors and integrated circuits are generally made by specialized contractors. business, showed signs of stabilization in the second quarter following alarming revenue plunges in late 2008 and early 2009, with the top players experiencing a collective return to growth, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. iSuppli Corp., a major company in technology value chain research and advisory Based on a review of second-quarter sales data, iSuppli said, the Top-10 EMS providers achieved revenue growth of 1.6% quarter-on-quarter (QoQ) in the second quarter. While this may not appear to be much of an increase, it represents a dramatic swing from the 25% sequential revenue contraction in the first quarter. The Top-10 Original Design Manufacturers (ODMs) performed much better, with second-quarter revenue rising by 12% QoQ. This contrasts with a 14% sequential decline in the first quarter. Adam Pick, director and principal analyst for EMS/ODM at iSuppli, said that during the second quarter, senior managers at EMS and ODM (Original Design Manufacturer) A contract manufacturer that uses its own designs and intellectual property (IP). See contract manufacturer. companies hinted that performance was stabilizing as demand firmed, cost structures adjusted and inventory decreased. The iSuppli's research confirms that the market did regain its footing in the second quarter. Despite these positive signs, it's still too early to celebrate an electronics manufacturing recovery. Several factors continue to cloud the outlook for EMS/ODM, Pick said, including the major one: the global recession that remains severe. Furthermore, certain OEMs are adopting strategic and recessionary manufacturing strategies, hindering growth for contract manufacturers. Another market inhibitor inhibitor /in·hib·i·tor/ (in-hib´i-tor) 1. any substance that interferes with a chemical reaction, growth, or other biologic activity. 2. is overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. , which continues to plague contract manufacturers by pressuring margins. Finally, ongoing shortages for devices, including optical disk drives and display panels, are negatively impacting the electronics supply chain in Taiwan and China, iSuppli said. To adjust to these market realities, managers at EMS/ODM firms are taking appropriate actions to right-size their cost structures and to collaborate with OEMs and suppliers to establish realistic expectations for the future, iSuppli said. ((QL)) (E) |
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