Worldwide EMS Industry Continued to Grow at a Double-Digit Rate in 2007, with Foxconn Leading the Way, IDC Finds

The worldwide electronic manufacturing services (EMS) industry grew at the annual rate of 17 percent in 2007, generating $268.1 billion in revenues, according to new research from IDC. While the original design manufacturer (ODM) sector continued to grow at the higher rate of 23 percent in 2007, the EMS sector still accounted for more than 60 percent of the industry. The two largest product segments remained computers and consumer devices, generating 36 and 29 percent of the EMS industry revenue respectively in 2007. The regional revenue mix was also fairly stable in 2007 due the realignments US EMS firms undertook to shift their geographic footprints offshore.

"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," said 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."

IDC's ranking of the top three EMS/ODM firms worldwide in 2007, based on revenue, is as follows:

Foxconn maintained its lead in the market, with 16 percent of all industry revenues, growing by 46 percent from 2006.

Flextronics grew to 12 percent market share as it acquired Solectron.

Quanta enjoyed the strongest annual growth of 57 percent, based on its success in the notebook segment winning business from Apple and Dell.

IDC's study, Worldwide Quarterly Electronics Manufacturing Services Vendor Shares and Market Update Briefing, 4Q07 and Full-Year 2007, presents vendor share analysis and updated market sizing for the EMS industry by sectors (EMS and ODM), nine product segments, and three regions.

www.idc.com