Vol. 25, No. 7 July 2015 Worldwide Contract Manufacturing Review

Figure 1: The Worldwide CM Market ($B), 2009–2014 The worldwide contract manufacturing performance overall. Five (CM) industry stayed essentially flat in EMS companies lost 2014, reporting slightly less total revenue money in 2014 but only than in 2013. Over the last five years, the three ODM firms did so— CM market has grown at 10.1 percent and with mostly minor CAGR, which is a healthy rate by any losses. Circuit, standard. Figure 1 summarizes CM despite the significant market growth from 2009 to 2014 in downturn in revenue in terms of US revenue. 2014 (primarily from the The CM market was sustained by the loss of Blackberry as a strong demand for smart phones, which customer), still managed to resulted in an increase in assembly turn out a strong profit. revenue of $5.4 billion in 2014. Orders Plant closures and for tablets were strong and for notebooks openings were quite weak (yet positive), while demand for extensive in 2014 as desktop computers was negative. companies were either Regardless, the computer industry gained consolidating or Because of the change in business model $1.3 billion in assembly revenue in 2014. expanding. The specific whereby certain ODMs in 2014 were Nearly all of the high-mix/high- closures or openings are reclassified as EMS companies, we cannot complexity products (medical, industrial, discussed on a country-by- analyze the previous year’s forecast for 2014. transportation) experienced positive country basis later in this We can examine the combined EMS and ODM growth, although defense/military article, but overall there forecasts (or CM) and compare it to the current suffered a decline resulting from budget were 31 closures compared results. We had projected growth in CM constraints. The biggest loser was the with 49 new openings. The revenue of only 1.1 percent from 2013 to 2014, consumer electronics industry, which openings are clearly related but the market performed so poorly that even experienced a $7.4 billion decline, mainly to new business this low number was too high. The actual resulting from a downturn in demand for opportunities, while the market growth in CM revenue was –0.5 percent digital television assembly. closures are being driven from 2013 to 2014. For the fifth year in a row, the by economic decisions. industry was profitable at $8.9 billion, nearly matching last year’s record of $9.5 billion among public CM companies. Some articles in this issue accounted for more than half of all Cover Story……………………………………………………………………………………..1 the money made by the EMS Worldwide Contract Manufacturing Review industry in 2014, although the Some Quarterly Results………………………...……...………………………………………..…3 ODMs showed better earning Company News…………………………………………………………………..…………………..…4

Worldwide Electronics labor cost Figure 2: The Worldwide Market for Electronics Assembly differentials are by Cost Element ($1.4T), 2014 Market Forecast becoming less Figure 2 summarizes the worldwide significant when assembly market for all electronics weighed against products for 2014 by cost element. The the total cost of greatest cost comes from labor and production (such overhead, followed closely by as transportation semiconductor components, and then more and logistical distantly by bare boards, connectors, and challenges). discrete electronics that are manufactured Offshore product by PCBA. The box assembly involves migration will systems integration, functional test, and still continue to final box assembly. All these elements in take place, but it electronics product assembly accounted will be at a more for approximately $1.4 trillion in total subdued pace. revenue.

Figure 3 presents the worldwide Application electronics assembly forecast for 2014 to 2019 by market segment. The overall Market market demand for electronics products Share Figure 3: The Worldwide Market for Electronics Products by should remain stable throughout the Figure 5 Market Segment ($B), 2014 forecast period as a result of continuous compares the innovation throughout a variety of market worldwide CM segments. MMI expects overall market market by growth to be steady over the next five industry segment years, barring a possible downturn in the for 2014 and election year of 2016. 2019. Both EMS Communications and computer products firms and ODMs will continue to be the leading segments will experience driving the largest growth in the the strongest electronics industry. In 2019, the total growth from industry is expected to reach $1.9 trillion production in the in annual assembly value (COGS), as communications consumption and replacement of and computer electronics products continue, and new market segments. products fuel demand. Outsourcing has Specifically, become a critical element in keeping the EMS companies electronics industry expanding and driving will find very costs to the margin each year—a leading Figure 4: The Worldwide Market for Electronics Products by strong growth in Region, 2014 and 2019 factor in stimulating consumer demand. tablets, e- The trend to move price-sensitive readers, cellular manufacturing to low-cost regions will handsets, impact the industry for all suppliers in the monitors, video foreseeable future. console games, and set-top Regional Market Share boxes, while Figure 4 compares the worldwide CM ODMs are market by region for 2014 and 2019. The projected to shift in production to low-cost regions has experience very been largely accomplished, although the strong growth in migration will continue, albeit slowly. tablets, e- Today, we are seeing OEM customers readers, cellular insisting that their CM partners handsets, manufacture products near the regions monitors, and This market overview of MMI’s analysis 2014 was extracted where the products are to be sold. For carrier-class from NVR’s recently published annual report, The Worldwide certain high-volume products like mobile equipment. In Electronics Manufacturing Services Market – 2015 Edition. phones and PCs, OEMs need to leverage general, EMS More complete information can be seen at the lowest cost in manufacturing; firms will tend to http://www.newventureresearch.com. however, 2 Manufacturing Market Insider, July 2015 excel in technology-intensive product Figure 5: The Worldwide CM Market by Industry Segment, 2014 and 2019 areas and complex board assemblies. ODMs excel in manufacturing commodity/high-volume products such as motherboards, monitors, handhelds, and consumer electronics.

CM Market Share Table 1 ranks the top ten overall CM companies by revenue for 2014. Foxconn continued its extraordinary dominance as the leading EMS firm in the industry, outdistancing its closest contender by more than four times. Flextronics was displaced from the number-two position by , dropping into third place. The remaining leaders are comprised of four ODMs and three EMS firms. Some Quarterly Results Table 1: Top Ten CM Companies’ Market Share, 2014 Celestica (CLS) reported Q2 revenue of $1.42 billion and EPS of $0.23. We do not anticipate much change in Celestica’s current revenue trend as weakness in carrier spending continues Company Rev. ($M) Market Share to negatively impact the communications space. The non- Foxconn (Hon Hai) 139,032 31.9% recurring asset relocation in the solar business is expected to negatively Pegatron 30,506 7.0% impact diversified segment revenue in the quarter. The company expects the impact on EPS to be somewhat offset by Flextronics 24,980 5.7% the completion of the significant issuer bid (SIB) in the quarter, but EPS is still 19,550 4.5% expected to decline $0.02 y-o-y to $0.23. Celestica is expected to end the Jabil Circuit 15,969 3.7% quarter with $182 million in net cash, down $387 million, largely due to the SIB. 15,286 3.5% Regarding business segments, the communications segment is expecting 13,956 3.2% Q2 to show sequential improvements on new product launches and an improving Inventec 7,188 1.6% spending environment. Cisco’s latest generation switching platform continues to show solid momentum and the TPV Technology 6,238 1.4% company continues to see growth in its routing platform, especially at the high Sanmina-SCI 5,870 1.3% end. Cisco continues to expect weakness in service provider spending, but the Others 157,935 36.2% company believes it will offset this weakness by gaining market share. In storage, y-o-y growth is expected to World Total 436,510 100% continue due to the stable demand environment and joint design manufacturing (JDM).

Manufacturing Market Insider, July 2015 3 EMC has been delivering 3% constant company’s top 10 customers were lower tax rate. currency revenue growth y-o-y from its below forecasts and several customers Flextronics continues to do a good job storage business despite a tough experienced weakness late in the on margins and cost management, but environment. In the server segment, quarter. Networking visibility remains both INS and CTG performed after very strong Q1 growth, expect the limited and weakness is expected to significantly below expectations this momentum to slow in Q2 as demand continue into Q4 with the segment quarter, which is concerning as these growth normalizes for IBM’s latest expected to be down in the high teens segments, combined, drive the majority mainframe line. Similarly, Oracle’s q-o-q. In addition, a production process of its revenue (> 60%). INS saw high-end hardware business continues to constraint in one of Plexus’s Aerospace softness in wireless, networking, perform well and helped drive 3% factories hurt sales and had a 20-basis- servers, and storage, while CTG again constant currency growth y-o-y. point negative impact on operating saw lower-than-expected smart phone The diversified segment was impacted margins, although this issue is being demand (Lenovo/Motorola Mobility). by the energy business; semiconductor resolved. In INS, management is confident about capital equipment (semi-cap) is Plexus’s fiscal third-quarter cash future growth in the segment, expecting expected to continue growing. On its cycle was 62 days. The company high-single-digit growth q-o-q in 2Q16 last earnings call Celestica indicated that delivered $15 million in cash from driven by 4 to 5 multihundred-million- despite the expectation for continued operations and used $10 million for dollar wins (with one being the recent strength in the semi-cap business, it capital investment during the quarter, $200 million Alcatel-Lucent deal). expected the transition of its solar resulting in positive free cash flow of However, one should remain cautious business from North America to Asia to $5 million. Top 10 customers of this outlook, given the volatility of weigh on comprised 57% of revenue during the new program ramps and overall market the diversified business. This should be quarter, up two percentage points from weakness in these core segments. a one-off event and the diversified the previous quarter. For the second quarter ending segment should eventually benefit from Within the EMS industry, Plexus is September 25, 2015, revenue is the purchase of certain Honeywell one of the few companies maintaining expected to be in the range of $5.9 assets in the quarter. the highest levels of operating margins. billion to $6.5 billion and adjusted EPS Q3 revenue guidance of $1.49 billion The company has also maintained is expected to be in the range of $0.22 and EPS guidance of $0.29 is above-industry growth rates, with a 14- to $0.28 per diluted share. anticipated. Overall, four of the five year revenue CAGR of 9% from FY00 segments should show y-o-y growth in through FY14. Management has Company News the quarter. Improved profitability, due recently operated well through a to the ramping of the Honeywell asset significant customer disengagement and Alcatel-Lucent Transfers purchase and the energy business is expanding its manufacturing footprint Optical Manufacturing relocation, in conjunction with a lower to support new business. These changes share count, should help to drive EPS have put pressure on margins, but Site to Flextronics growth of $0.03 y-o-y and $0.06 q-o-q. management has done a good job of Alcatel-Lucent (Boulogne- Plexus (PLXS) announced financial returning margins to within target Billancourt, France) has completed the results for its fiscal third quarter ended ranges over the past few quarters. transfer of its optical transport July 4, 2015, with revenue of $670 Flextronics () reported 1Q manufacturing activities in Trieste, million and non-GAAP EPS of $0.69, 2016 revenue of $5.6 billion and EPS of Italy, to Singapore’s Flextronics. results largely in line with its $0.23. 1Q2016 revenue came in below Flextronics will take responsibility for preannounced range. Of its four consensus, while EPS and forward new product introduction, business segments, three missed guidance was largely in line. Weaker manufacturing, and integration, as well expectations (Networking, Healthcare, demand trends in Integrated Network as repair services of Alcatel-Lucent and Defense/Security/Aerospace), while Solutions (INS) and the Consumer optical equipment at the site. Alcatel- the Industrial segment modestly beat Technology Group (CTG) drove the Lucent and Flextronics have also signed expectations. Operating margins revenue miss. In-line EPS was a five-year, renewable contract for the declined 20 basis points q-o-q to 4.3%, supported by a mix shift to higher- supply of optical products. due to lower fixed-cost absorption margin businesses and strong cost Flextronics has a long-standing driven by lower-than-expected revenue management. relationship with Alcatel-Lucent, which during the quarter. For 4Q15, Sales declined 16% y-o-y, primarily is on track to be acquired by Nokia in management guided sales to $650–680 due to weakness in the INS (–19% y-o- 2016. million and EPS to $0.64–$0.72, below y) and CTG (–30% y-o-y) segments. The asset transfer to Flextronics consensus at $690 million/$0.76. Operating margins were 2.9%, down 10 includes manufacturing, real estate, and The Networking segment basis points q-o-q, on negative revenue support and service activities related to underperformed as two of the leverage, which offset the benefits of a optical transport equipment at the mix-shift to higher margin segments, Alcatel-Lucent plant in Trieste, Italy. improved operational efficiencies, and a Employees and temporary workers

Manufacturing Market Insider, July 2015 4 currently on staff at the site have been the traditional pattern for the tech information from social media, transferred as well. industry is for the second half of the emergency warning systems, and its year to be better than the first half, as own data on product movement to help PartnerTech Files for electronics companies gear up for the the electronics contract manufacturer year-end holiday season. quickly adjust its work flow to global Delisting, Scanfil Initiates On April 16, during TSMC’s disruptions. Compulsory Acquisition announcement of first-quarter Flextronics, like other electronics 2015 results, the company said the manufacturers, has been seeking to Proceedings semiconductor industry’s annual diversify from building computers and On June 25, 2015, Scanfil Oyj growth had adjusted down from 5% phones into wearables and consumer announced that its public takeover offer earlier to 4% due to the global businesses. Being able to respond to the shareholders in PartnerTech AB macroeconomic situation. TSMC added quickly to supply chain disruptions may was declared unconditional and that the overall foundry growth rate give the company and its customers an completed. would slow as well, to about 10%. edge. Scanfil holds over 90% of shares and A worsening outlook for the Flex Pulse, as the project is known, votes in PartnerTech and had resolved to foundries would likely have a negative could let the Singapore-based initiate a compulsory acquisition impact on manufacturer buy disk drives at the first regarding the remaining shares in the suppliers of equipment and materials. signs that a flood might damage drive company. TSMC earlier this year slashed its factories in Thailand, before prices rise, In light of the above, PartnerTech’s planned capital expenditure for 2015 by Flextronics Chief Executive Officer board of directors does not consider it about $1 billion. Intel also pared about Mike McNamara said. Flextronics also reasonable for the company to remain a $1.3 billion from its 2015 capital could, for example, shift final assembly listed company, and has therefore expenditure budget. of products to Mexico from China to decided to apply for delisting Bad news for some may be good avoid the effects of a strike at the Port of the PartnerTech share from NASDAQ news for others. The customers of Long Beach, California. Stockholm. of TSMC and UMC may gain more While the company is a distant power to bargain for lower prices as the number 2 behind Taiwan-based Hon Drop in Foundry Sales two foundries seek to shore up slipping Hai Precision Industry Co., Sends a Warning Signal capacity utilization, which is important Flextronics’s customer base is broader. For the first time in more than three to maintaining profitability in their Hon Hai generated 50% of its $139 years, the world’s two biggest capital-intensive business, as reported billion in sales for its latest fiscal year foundries have posted negative monthly by EE Times. from Apple, Inc. and about 15% total revenue figures at the same time. from Dell, Inc. and Hewlett-Packard Taiwan Semiconductor Ducommun Wins Co., according to data compiled by Bloomberg. Flextronics’s largest Manufacturing Co. (TSMC), the Additional Work on world’s largest chip foundry, said its customer was Lenovo, which provided revenue in June this year dropped by Boeing 737 MAX 11% of its $26 billion in revenue. 0.6% compared with the same month a Ducommun Incorporated (Carson, Apple and Ford Motor Co. are among year ago. That’s the first time since CA) reported that it has been awarded a its biggest customers. January 2012 that the company has contract from Spirit AeroSystems, recorded negative sales growth. Inc. (Wichita, KS) to produce titanium IMI Bulgaria Acquires TSMC’s next-door neighbor, United APU (auxiliary power unit) exhaust Property in Bulgaria Microelectronics Corp. (UMC), fairing assemblies, housed in the tail cone, for the Boeing 737 MAX Integrated Micro-Electronics, said its June revenue fell by 2.8% from Inc. (IMI) (Laguna, Philippines) the same period a year ago. commercial jetliner. The contract runs through 2018, with production taking announced that its wholly owned and TSMC and UMC together account for indirect subsidiary Integrated Micro- more than 60% of the world’s foundry place at the company’s Parsons, Kansas facility. Ducommun previously electronics Bulgaria EOOD (IMI BG) production and thus are key bellwethers has executed a transfer of property of global economic health. During the announced it will produce ground and flight spoilers for the 737 MAX as well from Melexis Bulgaria EOOD (MB). first five months of 2015, both The transaction involved IMI BG’s companies recorded sliding sales as other structural titanium assemblies. acquisition of a parcel of land and the growth, capped off by the negative building situated in Botevgrad, numbers in June, the most recent month Flextronics System to Bulgaria for €1.14 million. The for which the companies have reported Adjust Manufacturing to property has a total land area of 16,275 sales figures. square meters (sq. m.) and a total To be sure, the declines in sales so far Global Disruptions buildup area of 12,193 sq. m. are small. Yet they are worrying because Flextronics International, Ltd. has created a system that combines Manufacturing Market Insider, July 2015 5 Executive Changes… Celestica, Inc. Flextronics (Singapore, Singapore) Taiwan’s Foxconn Technology (ON, Canada) announced that its announced that it has officially changed Group is aiming to create at least a Board of Directors has appointed its name to Flex. Michael Mendenhall, million jobs by setting up 10 to 12 Robert “Rob” Mionis as President and Flex’s chief marketing and manufacturing facilities across India Chief Executive Officer and member communications officer, noted that it by 2020, its chairman said. of the Board, effective August 1, 2015. has progressed in its product and Terry Gou, head of the maker of Craig Muhlhauser, who announced his service offerings over the years, adding iPhones and iPads for Apple and intention to retire from the company in many new solutions, and today it is Kindles for Amazon, told the media October 2014, will remain with much more than just an EMS, supply on a short trip to India that Foxconn Celestica as an Advisor to the Board chain solutions, or “'tronics” company. will look to set up the manufacturing until December 31, 2015. The rebranding effort includes plants, initially, in five states, Rob joins Celestica with over 25 everything in the company: a legal including Andhra Pradesh, Gujarat, years of senior leadership experience name change, a new identity package, a and Maharashtra, and expand to other across a variety of industries, including new brand package, a new states across the country within five the aerospace, industrial, and communications architecture and brand years. semiconductor markets. Most recently, architecture, and a new tagline. The The company also plans to set up Rob was an Operating Partner at new tagline is “Live Smarter.” The data centers and incubators in cities Pamplona Capital Management, a company’s idea of “Live Smarter” including Delhi, Mumbai, Bengaluru, leading global private equity firm really embodies the vision and mission and Hyderabad. It is also looking to focused on companies across a wide of the company. invest in Indian Internet startups, small variety of industries, including the and medium-sized enterprises, and industrial, aerospace, healthcare, Flextronics to Consolidate handset makers. and automotive segments. Gou said that the current government Texas Plants, Lay Off 168 is far more supportive of Celestica Enters Into in Plano manufacturing in India than was the Flextronics International, Ltd. is government 10 years ago, when his Agreement to Sell Its laying off workers in Dallas-Fort company set up a manufacturing plant Real Estate Worth. According to a WARN (Worker in Chennai. Foxconn has had to shut Celestica announced that it has Adjustment and Retraining Notification that plant due to continuing labor entered into an agreement for the sale Act) letter filed with the Texas unrest. The component-making plant of its property located in Toronto, Workforce Commission, the Singapore- was a key supplier to Nokia, which Ontario, which includes the site of based electronics manufacturing and shut operations last year. Celestica’s corporate headquarters and assembly company will lay off 168 The firm, also known as Hon Hai its Toronto manufacturing operations. employees at its Plano plant. The Group, which has a client list that The site is being sold to a special- company is consolidating two Texas includes Apple, Cisco, Dell, purpose entity (the “Property sites, and the layoffs will come in Microsoft, and Hewlett-Packard, Purchaser”) to be formed by a phases between October and the end of plans to make mobile handsets, tablets, consortium of three real estate the year. TVs, electronic products, batteries, developers, namely Diamond Corp., This decision is the direct result of a key electronic components, routers, Lifetime Developments, and change in Flextronics’s strategy to set-top boxes, and printers, among Context Development, Inc. consolidate its Plano, TX Global other products, in India, the top (“Context”). Operations Group into its Austin, TX executive said. The Property Purchaser will pay Global Operations Group. Foxconn will soon start assembling Celestica a cash deposit of CDN$15 Flextronics laid off an estimated 223 smart phones for Chinese brand million, which is nonrefundable workers in 2014 at the Motorola Xiaomi in a plant located in Sri City in except in limited circumstances. Upon assembly facility in the Alliance Chennai, and it plans to set up the new closing, which is subject to various development of north Fort Worth after 10–12 manufacturing plants with an conditions including municipal opening the plant with much ballyhoo initial investment of some $2 billion. approvals and is anticipated to the previous year. The layoffs came Gionee recently confirmed its talks occur within approximately two years, after Motorola said it was closing its with Foxconn for contract the Property Purchaser will pay handset unit that manufactured the manufacturing in India. Celestica an additional CDN$53.5 Moto X smart phones. Foxconn will look at making India a million in cash. manufacturing hub to make products Foxconn to Set Up 10 to 12 not just for the consumption of the domestic market, but for export also. Flextronics Officially Manufacturing Plants in Changes Name to Flex India by 2020

Manufacturing Market Insider, July 2015 6 IEE Acquires French All strategies to expand Plexus’s market OSI Opens in San Pedro share in this important region. Circuits One Source Industries, LLC (Irvine, Luxembourg-based sensing specialist CA) has opened a new production Stadium’s China Move Is IEE has finalized its acquisition of All facility in San Pedro, California. Circuits, a French EMS provider with The new 25,000-square-foot facility Expected to Be Completed plants in Europe and North Africa. will provide contract packaging, This Month IEE has made this acquisition along with fulfillment, distribution, and product For the UK technologies group three co-investors. As the Managing packaging services for customers in the Stadium Group, the positive start of the Shareholder, IEE, together with All consumer electronics market and other year has continued. Trading remains in Circuits’ management, will set the direction industries. Opening with an initial 10 line with expectations and ahead of the of the company. employees, the new facility is poised for equivalent period last year. With All Circuits on board, IEE will be additional growth in the coming years. There are some big changes going on well positioned to develop its expertise in The San Pedro facility complements with Stadium over in China, however. automotive safety electronics production OSI’s other production facilities in The company’s relocation to a new processes and will have direct access to Chicago, IL and Memphis, TN. The new facility within China—which aims to electronics manufacturing excellence. This San Pedro facility will provide faster enhance the Group’s technical acquisition will also enable it to enlarge its speed to market for its customers and capability—is expected be completed this product portfolio, particularly in the non- meets the need for increased production month. automotive market. capabilities as a result of two In order to support the continuing All Circuits is expanding; its latest consecutive years of double-digit growth of the business, the Board decided investment is a 6,000-square-meter growth. to upgrade the Group’s manufacturing dedicated logistics platform. This will allow capability in South China by relocating to both companies to develop their a new facility at the expiry of the lease on international footprint. SVI Expands in Cambodia EMS provider SVI (Thailand) is the current site in mid‐2015.

expanding its global production footprint Jabil Circuit Will Expand and capacity in Asia through a $16 PKC Completes Groclin Operations in Saigon HiTech million investment in the capital city of Cambodia. Deal PKC’s (Helsinki, Finland) acquisition Park in Vietnam The construction of the company’s of Groclin’s Wiring and Control Jabil Circuit (St. Petersburg, FL) has new 12,000-square-meter factory will business was completed July 1, 2015. signed a memorandum of understanding begin in the third quarter of 2015 and The deal includes Kabel-Technik- (MOU) with the management board of production is expected to start in the Polska Sp. z o. o. (KTP), operating in Saigon HiTech Park in Vietnam. The second quarter of 2016. Poland, which at the time of the closing agreement will allow the company to expand its current operation in HiTech will own the entire Wiring & Controls Park. Plexus Appoints Oliver business of Groclin S.A. Group. The The memorandum will allow for Mihm as EMEA Leader requirements of closing have been additional investments to expand Jabil’s EMS provider Plexus (Neenah, WI) fulfilled; the closing was to become existing operations in Vietnam. The new has appointed Oliver Mihm as the new effective and ownership and control facility, slated for groundbreaking in 2017, Regional President for the EMEA transferred on 1 July 2015, the company will focus on high-volume production of region. announced. computing, storage, networking, With this appointment, Mr. Mihm telecommunications, automotive, assumes leadership responsibilities for Hanza Acquires Metalliset digital home, mobility, point of sale, the strategy and execution of all aspects printing, industrial, and energy of Plexus’s business within EMEA. He Group Swedish EMS provider Hanza Holding products. will be based out of Plexus’s Darmstadt has entered into an agreement regarding By expanding in Vietnam, Jabil gains Design Center in Germany. the acquisition of all outstanding shares important benefits, including access to a EMEA, and specifically Germany, in Metalliset Oy, a parent company in a large pool of industrious workers, midlevel remains a significant growth opportunity manufacturing group with a turnover of engineers, and managers. Vietnam also area for Plexus, necessitating strong roughly €40 million. offers favorable labor costs in a robust leadership. Throughout his 15-year The total purchase price amounts to economy that has grown at a rate of 6 tenure with Plexus, Oliver has some €7.47 million, of which a percent for the last four quarters. A established a solid record of success. His substantial part consists of new shares in significant source of that growth is the experience and proactive leadership Hanza. Therefore, the board of directors high-tech manufacturing sector. style will provide immense benefit to the intends to carry out an issue of new EMEA team as it further develops

Manufacturing Market Insider, July 2015 7 shares to the current shareholders of The Czech government and Foxconn Metalliset, corresponding to roughly were to sign a memorandum of Erratum cooperation on July 21 at a meeting of 15% of the total shares in Hanza, in In the June 2015 issue of MMI, we Czech Prime Minister Bohuslav connection with the acquisition. reported the quarterly numbers from Sobotka and Foxconn founder Terry Kimball International instead of from PartnerTech Awarded Gou. Kimball Electronics, the newly Contract Extension independent EMS company. The correct results for Kimball Electronics from Existing Customer Vietnamese Government should have read Q1 ’15 sales, $206.9 PartnerTech (Sweden) has been Cancels Foxconn’s Mobile million, Q4 ‘14 sales, $207.6 million, awarded a contract extension from and Q1 ‘14 sales, of $185.7 million. one of its largest customers covering Phone Plans manufacturing, distribution, and The Vietnamese government is aftermarket services in North canceling plans for Taiwan-based Publisher: Randall Sherman America. Foxconn to manufacture mobile PartnerTech’s operations in North phones in the country. Editor: Anna Reynolds An official from the government of America are focused on Research Analyst: Vivek Sharma manufacturing and distribution Vietnam revealed that the related services, for example AIA department has canceled the Board of Advisors: Michael Thompson, CEO, I. Technical Services; Ron Keith, (Assembled in America), which investment license issued to Foxconn Group for the construction of a $200 CEO, Riverwood Solutions; Andy Leung, provides customers with a local and CEO, VTech Communications Ltd. flexible supply chain in the North million mobile phone plant in Vietnam. American market. Nguyen Tien Hanh, head of the Manufacturing Market Insider is a monthly investment promotion department of newsletter published by New Venture Vinh Phuc, Vietnam, said that it Research Corp., 337 Clay St., Suite 101, Foxconn Plans to Invest canceled the investment license Nevada City, CA 95959. Phone (530) 265- in Czech Republic previously issued to Foxconn Group 2004, Fax (530) 265-1998. Copyright 2015 by NVR™. ISSN 1072-8651 Taiwanese electronics supplier because the group’s mobile phone plant project in Vinh Phuc province did The information and analysis presented Foxconn plans to invest “billions” not make any substantial progress. here are based on sources believed to be of crowns in the Czech Republic, the Hanh said that disregarding many reliable, but content accuracy is not country’s industry ministry noted. warnings from the government, guaranteed. The publisher shall not be held Foxconn’s investment should liable for any business decisions influenced Foxconn Group did not take any action include a research and design center, by this publication. on the plant’s construction. Therefore, its only such facility in Europe, the the department decided to revoke the E-mail: [email protected] ministry said. It did not specify the license, as reported by China Tech exact investment amount. Website: www.newventureresearch.com News.

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