Will India become the Outsourcing Hub for Electronic Manufacturing Services?

author

By: Anithamaragatham G --

02 July, 2012

Will India become the Outsourcing Hub for Electronic Manufacturing Services?
WHITEPAPER

Electronic Manufacturing Services (EMS) Electronic manufacturing services include designing, testing, manufacturing, distributing, and providing return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs) across different Industries.

EMS Product Categories Electronic components manufactured in the EMS market could be classified into two categories: Low Mix High Volume (LMHV) and High Mix Low Volume (HMLV). High volume products such as consumer electronics fall under the first category whereas the later constitutes the low volume but critical products such as medical devices.

Global Demand & Supply Dynamics Asia Pacific, in particular, China acts as the supply market for LMHV products which constitute to around 86% of the global demand. Companies from USA and Europe act as the major suppliers for HMLV products which require critical regulatory compliances. EMS demand is majorly driven by the global OEMs in a drive towards cost savings and increased focus on innovation and speed to market in the core manufacturing areas.

Global Outsourcing Trend EMS companies help OEMs in achieving significant cost savings when compared to in-house manufacturing. Hence, outsourcing the manufacturing to electronic manufacturing service providers has been an evolving trend across the globe.