China's indigenous Contract Manufacturing blossoms
by BYRON WU
Dec 28, 2005
China's indigenous contract-manufacturing industry is being driven by the rapid growth of the nation's consumer electronics and telecommunications markets, according to iSuppli Corp. In China, the largest contract manufacturers are almost all foreign owned. Indigenous companies represent only a tiny percentage of China's total contract-manufacturing revenue. However, about a dozen excellent Electronics Manufacturing Services (EMS) companies have emerged in China, such as Ningbo Yidong, Shanghai Jinling, Suzhou Victory and Beijing Brio Technology. And more than 1,000 Chinese indigenous Original Design Manufacturers (ODMs) are very active in markets including DVD players, mobile phones, ADSL modems, set-top boxes, LCD TVs and power supplies. However, Chinese EMS and ODM companies differ significantly from their global counterparts. China's domestic EMS providers focus on the low-end of the market and the nation's ODMs use a scaled-down business model. Table 1 presents a ranking of China's top-five indigenous EMS companies in 2004. Rank | Company | 2004 Revenue
Estimate ($M) | Products Manufactured | 1 | Yidong | $60 | Mobile Phone, PHS Phone, LCD-TV, Control Board | 2 | Jinling | $24 | Mobile Handset, Main boards of PC, DVD Decoder Board | 3 | Victory | $23 | Mobile Handset, Control Board, PC Peripheral | 4 | Guono | $20 | Mobile Handset, PHS phone, MP3, Main Board, D-STB | 5 | Brio | $10 | Control Board, Kitchen Range Hood |
Source : iSuppli Corp. - December
Byron Wu is the director of China research for iSuppli Corp. Contact him at bwu@isuppli.com
iSuppli's upcoming China Indigenous Contract Manufacturing report will profile leading Chinese EMS and ODM companies, with in-depth analyses of industry characteristics and development trends.
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