News
The region is benefiting from migration of multinational providers from the U.S. and Europe looking to reduce their manufacturing costs and underutilized capacity, says Frost.
EMS providers generally prefer making investments in larger markets such as China and locating near OEMs customers. However, with long-term growth expected, they are likely to set up or expand their existing bases in Southeast Asia to minimize the risks of concentrating on just a few geographical areas, says the firm.
Medium-volume products such as medical equipment and automotive electronics are seen as the better fit for Southeast Asia, since EMS providers will have sufficient volume to cover fixed costs. These products contain a high degree of IP specific to OEMs, thereby presenting a significant entry barrier for original design manufacturers (ODMs) and any new participants. Hence, specializing in low-volume products can prove advantageous to EMS providers in the long term, Frost reports.
EMS providers can also benefit from pursuing collaborative design with OEMs and share any IP created, rather than providing complete design services to prevent any conflict of interests. This arrangement can also provide EMS providers with the knowledge and skills gained during the design phase to the manufacturing phase of a product, reports Frost.
NEENAH, WI -- A Plexus
Corp. plant in Penang, Malaysia, has received Food and Drug
Administration approval to make medical devices that meet Class III
performance standards.
The approvals brings to three the number of FDA-registered Plexus manufacturing
facilities in the U.S., Mexico and Malaysia, two of which are now approved to
manufacture Class III medical devices.
JACKSON, MI – An appeals court has tossed a $1.7 million judgment in favor of EMS provider Sparton Corp.
The U.S. Sixth Circuit Court of Appeals has vacated a prior ruling in favor of Sparton in its lawsuit against Util-LINK LLC and National Rural Telecommunications Cooperative.
The Sixth Circuit also affirmed the lower court's decision denying NRTC relief on its $20 million counterclaim against Sparton.
Sparton said it would review the decision and that its claim still has merit.
