EMS growth continues at double-digit rate

While the ODM (original-design-manufacturer) sector continued to grow at the higher rate of 23% in 2007, the EMS (electronic-manufacturing-services) sector still accounted for more than 60% of the industry, growing at an annual rate of 17% in 2007 and generating $268.1 billion in revenues, according to recent research from IDC.

Computers and consumer devices remained the two largest product segments, respectively making up 36% and 29% of last year's EMS industry revenue.

“While computing remains the largest single sector, followed by consumer devices, the industrial segment experienced constant solid growth for EMS firms and displaced servers and storage as the third-largest product segment for the industry,” says Michael Palma, senior research analyst for IDC's semiconductor group.

“ODMs need to evaluate current product and customer portfolios, and look beyond notebooks and mobile phones for future growth. EMS and ODM firms should also take steps to mitigate effects from a likely US recession,” he urges.

According to IDC, Foxconn maintained its lead in the market, with 16% of all industry revenues in 2007, growing by 46% from 2006.