Flextronics's CEO, Michael Marks, recently visited six Taiwanese ODMs (Original Design Manufacturer) to identify opportunities for cooperation. The visit has garnered attention given the long-standing, heated competition between EMS (Electronics Manufacturing Service) providers and Taiwanese ODMs in the PC, mobile phone, and network equipment segments.

 

Flextronics is hoping that Taiwanese ODMs will be interested in using the company's bases worldwide to undertake final assembly, rather than shipping assembled goods from sites in China. The EMS provider has pointed to rising oil prices and climbing transport costs in an effort to persuade Taiwanese makers.

 

The company is also trying to generate business in the PC segment for its mechanical parts service, which provides items such as keyboards, speakers, and thermal fans. At present Arima and Compal engage Flextronics for such service.

 

At the same time, Flextronic's procurement from Taiwanese makers for components such as flat panel continues to increase. Total procurement amounted to close to NT$80 billion in 2003, and is expected to surpass NT$100 billion in 2004.