caLogo
ROUND ROCK, TX – Amid Dell Inc.’s recently announced plan to outsource computer production, speculation has risen that one or more EMS firms could soon make a play for the world’s second-largest PC maker’s facilities.

As reported by The Wall Street Journal Friday, Dell plans to sell most of its facilities within the next 18 months, and the paper says the firm already has approached potential suitors.
 
Approximately 58% of the company’s five million sq. ft. of manufacturing and distribution space is in the U.S.; 22% is in Asia and 20% is split between Ireland and Poland. Dell has manufacturing and final assembly plants in Brazil, Florida, North Carolina, Ohio, Tennessee and Texas.
 
Yet while analysts believe the most likely buyers to be large contract manufacturers, Top Tier EMS firms like Flextronics, Benchmark and Sanmina-SCI have declined comment on Dell’s situation. Any deal would likely come with long-term supply arrangements, analysts say, which may stifle any cost savings for Dell.
 
For its part, Sanmina-SCI just sold its low-margin PC assembly business to a subsidiary of Foxconn, and would be unlikely to re-enter that market.

Submit to FacebookSubmit to Google PlusSubmit to TwitterSubmit to LinkedInPrint Article
Don't have an account yet? Register Now!

Sign in to your account