News
SAN JOSE, Oct. 1 - Flextronics was the world's largest EMS firm in 2003, with revenues of $13.8 billion, Reed Research Group said today.
Solectron was number two at 11.1 billion, followed by Sanmina-SCI($10.8 billion), Celestica ($6.7 billion) and Jabil Circuit ($5.2 billion).
The rest of the top 10 were: Finland-based Elcoteq ($2.8 billion), Venture of Singapore ($1.9 billion), Benchmark Electronics ($1.8 billion), Taiwan's Universal Scientific Industrial ($1.2 billion) and Plexus (841 million).
No. 11 Manufacturers' Services Ltd. ($825 million) has since merged with Celestica. The complete list of the top 100 can be linked to at: www.reed-electronics.com/eb-mag/article/CA447588?nid=2017&rid=231544418.
Sales increased 34.2% from last August, in line with historical patterns.
"Semiconductor producers and their customers have reacted with unprecedented speed to recent reports of excess chip inventories," said SIA president George Scalise, in a press statement. "In previous market cycles, it has generally taken several quarters for the supply chain to take corrective action. When the first reports of excess inventory accumulation surfaced in the second quarter, both producers and customers moved quickly to adjust.
A pair of research groups, VLSI Research and iSuppli, are now reporting that chip inventories are declining, Scalise said.
Capital spending at IC makers is about 23% of sales, in line with historical patterns, SIA said. "At this time, we do not believe overcapacity will be a major concern in 2005," SIA said.
SIA reiterated its forecast of 28% growth for 2004. Its 2005 industry forecast will be released Nov. 3.
Sales of PCs and equipment for networking and telecommunications contributed to semiconductor growth in August. Sales of microprocessors increased 3.5% sequentially, reflecting PC sales patterns of the back-to-school season.
Chip sales were up modestly in all geographic regions. In Asia-Pacific, sales increased just 0.1% sequentially, reflecting the impact of inventory adjustment actions taken by OEMs, SIA said.
NEW YORK, Oct. 1 -- Flextronics is poised to gain market share from competitors Sanmina-SCI and Solectron, says an analyst who met with the EMS maker yesterday.
Thanks to a combination of the lowest-cost footprint and the most robust design offering in the industry, Flextronics is evolving into a design and component manufacturer that also offers EMS services, wrote Chris Whitmore, an analyst with Deutsche Bank's Equity Research group. In fact, wrote Whitemore, Flextronics "suggested that it could give away the assembly business for free if customers opted to use its competitively priced components."
"We remain confident in Flextronics` long-term vision and strategic direction," Whitmore wrote. He said Flextronics' vertical strategy and low-cost assets is "driving its customers' costs lower --faster than anyone else in the industry."
In other news from the analyst day, Flextronics said it is in the process of consolidating roughly $1.3 billion of business from other EMS suppliers into its existing manufacturing facilities, to the detriment of Sanmina-SCI and Solectron, according to DB.
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