Circuits Assembly Online Magazine - Electronics MNCs Seeing Growth in China Ops

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SAN FRANCISCO – End-market demand remains relatively healthy, driven by robust growth in handsets, according to a new report from Deutsche Bank.

Following meetings with Flextronics, Jabil, Amphenol and Nam Tai Electronics Inc, the firm announced that “handset demand remains robust, while other high volume programs appear to be trending inline to slightly above plan.”

Flextronics 3.1 million sq. ft. site in Doumen is trending “slightly above plan” for the December quarter, DB said, with demand coming from handsets, XBox and graphic cards.

Amphenol’s Shenzhen facility, which builds parts for storage, handsets, consumer electronics and communications infrastructure, is performing “well above” guidance for the quarter and should continue to deliver solid sales and profit growth in 2006 as a result of several new product wins, DB said. The site, which has shown a return on invested capital of greater than 50% for the past over years, is responsible for about 4% of the company’s total revenue, DB estimates.

Meanwhile, Jabil’s facility in Huangpu, is running ahead of plan in the Nov quarter on strong demand from HP and Nokia, DB said. DB estimates the plant is responsible for about 10% of Jabil’s revenue.