Electronic OEM market slows down and shuffles

The sluggish electronics foundry market is accelerating. Foxconn's layoffs are just the tip of the iceberg. The electronics foundry industry seems to be facing a large-scale adjustment and reshuffling.

With the continued decline in the global market share of the largest customer, Nokia Mobile Phone, the electronic foundry giant Foxconn was tragically “declined” by Foxconn Korea International Co., Ltd. under the leadership of Terry Gou. As Wang Xuehong ascended the richest man in Taiwan, and the ranking of Gou's ranking dropped, the author pointed out that the electronic foundry industry has come to a fork in the road. Nowadays, the electronic foundry industry seems to be facing a large-scale adjustment and reshuffle. .

The sluggish electronics foundry market is accelerating. Foxconn’s layoffs are just the tip of the iceberg. For example, Singapore's Flextronics, the world’s second-largest electronics foundry giant, revealed at the end of May that they may give up bids for notebook OEMs in 2012 and beyond, and even withdraw from this area. On the surface, it seems that Flextronics has lost four years of competition with the foundry industry in Taiwan, but this is essentially related to changes in the industry's broader background. 6 years ago, the average operating profit margin in the world of notebook foundry was 3% - 4%, which floated around 3% four years ago. It fell to 2% two years ago. The sharp decline in average profit margins has caused many companies to become overwhelmed and have even had to seek a transition.

Most of the electronic foundry companies face the same serious problem, that is, their relationship with the “customer” in the upstream of the industrial chain is not equal. If Apple's Foxconn, Apple's profits hit new highs, Foxconn foundry can only struggle at the edge of low profit. The increasingly high raw material costs and labor costs also make many foundry companies overwhelmed.

The intensification of competition in the upstream of the OEM industry has caused the downstream foundry factories to tighten their nerves at any time. They are ready to adjust their strategies at any time, because no matter who they are, any step behind in “seeing the wind and rudder” may lead to difficulties and even difficulties. Died.