Contract Equipment Manufacturing continues to maintain a comparative advantage in the electronics industry. It is driven by commoditization, specialization, and economies of scale: if all inputs are doubled, output more than doubles. The contract equipment manufacturers are coming out of a challenging recession, but the future is beginning to look bright again. More original equipment manufacturers are indicating plans to outsource, license technology, and move capacity and resources toward the outsourced-manufacturing and outsourced-supply-chain management model.
This new model would infuse the semiconductor
industry with a progressive supply chain, where new roles
and relationships would need to be cultivated and fostered
in order for players to stay competitive. Contract equipment
vendors are becoming increasingly responsible for the procurement
of semiconductors along with the other items in a bill
of materials. Due to an expanding role in the supply chain,
the contract equipment manufacturer is becoming an increasingly
important customer base to the semiconductor suppliers.
|
Market Overview
and Forecast
Inventory
The PCB Business
Fundamental Business Trends
Methodology
Sources
Figure 1: 2001 Market
Share Estimates for Tier One CEMs
Figure 2: CEM Inventory to Sales Ratio
Figure 3: PCB Industry Still Problematic – IPC Book-to-Bill
Ratio for PCB
Figure 4: Tier One CEM Revenue by End Market (% of Total)
Figure 5: Asian CEM Factory Capacity by Supplier
Figure 6: Sanmina-SCI New Business Profile
Figure 7: The expanding services of CEMs and Supply Chain
Coverage
Table 1: US Real GDP
Growth
Table 2: Contract Equipment Manufacturing – Worldwide Revenue Forecast
Table 3: Contract Equipment Manufacturing Performance and Market Share
