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That’s according to a new report from Barron’s. The financial media outlet believes OEMs will slowly but steadily move programs to EMS companies over the next several years.
Each segment should add 2.5% in incremental growth to the EMS sector over the next two years, Barron’s says. Coupled with macro demand forecasts, plus incremental gains for consumer electronics cellphones (another 2.5%), and the industry growth rate should reach 10%.
Furthermore, the company says, this revenue will come with higher margins than past outsourcing programs. While the industry at large tries to buck 3 to 3.5% operating margin, the new revenue sources should have 10% to 20% incremental operating margin, Barron’s says.
SIOUX FALLS, SD -- Raven Industries reported January quarter sales fell on weaker economic conditions in the company's end-markets.
OLATHE, KS -- Elecsys, which provides EMS and other OEM products, reported fiscal third-quarter sales fell 6% year-over-year to $4.74 million.
NASHVILLE – Celestica plans to close its facility here on April 15, say local reports.
SAN JOSE – Worldwide sales of semiconductor manufacturing equipment totaled $15.92 billion in 2009, a 46% year-over-year decline, SEMI reports.
TORONTO -- SMTC reported fourth-quarter revenue of $51.2 million, down 7.4% year-over-year but up 16% sequentially.
HELSINKI – The European Chemicals Agency this week published proposals to identify eight chemicals as Substances of Very High Concern (SVHC) and possible candidates for authorization.
ELK GROVE VILLAGE, IL – EMS firm SigmaTron International reported third-quarter fiscal 2010 revenues of $30.6 million, up 13% year-over-year.
IRVING, TX -- Gary Tanel, a longtime EMS executive, has purchased Circuitronics, a low-volume prototype contract assembler based here.
MUNICH -- January orders at Germany-based electronics manufacturers were up 10% from a year ago, a domestic trade group said.
STAMFORD, CT -- A leading research firm upped its 2010 global PC shipments projection to 19.7% growth year-over-year.
SAN JOSE – MEMS Industry Group and MEPTEC will hold meetings in May in San Jose to discuss advancements and trends in microelectromechanical systems fabrication and integration.
MEMS Industry Group’s members-only meeting METRIC will identify and overcome technical and business challenges to MEMS fabrication. Topics to be discussed include optimizing MEMS fabrication, new opportunities for MEMS (including advances in packaging technologies and alternatives to silicon), tradeoffs between the captive fab versus the fabless business models, and how to partner and work with a foundry.
METRIC will be held May 18-19. For more information, visit www.memsmetric.com.
The Microelectronics Test and Packaging Engineering Council’s MEMS Symposium will discuss transitioning from fully integrated to separate MEMS and IC, the transition from automotive MEMS to consumer MEMS, software applications and accelerometers in cellphones, ASICS/MEMS, different types of integration, and flipchip bumping.
The MEMS Symposium will be held May 20. For more information, visit http://www.meptec.org/meptec8thannualm.html.
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