One thing to point out - Foxconn and Hon Hai are actually the same company. That said, Foxconn are particularly poor at sourcing components and getting good pricing. Maybe our product is just too low volume to command their full attention. Also, I find it odd that Foxconn don't seem able to use their Chinese connections to find components in China when "the West" appears to have run dry.
Hon Hai's performance and the 50% of the market share seems really an outstanding achievement. But I wonder what is happening to companies like Foxconn, sanmina and celestica. All these companies are also leading EMS service providers and these companies are investing lot of money to expand the business still they are no way close to Hon Hai. How is it possible for a single company to own such a huge part of the EMS?
Wow. You are right--Hon Hai is in a class all its own.
I would find this of concern in any industry, though. One company accounting for half of total sales would worry me as both a supplier and customer. Are Hon Hai's customers mostly concentrated within Hon Hai, or do they spreadt the risk? And how much does Hon Hai represent to any one supplier?
This is a tribute to the success of tech firms from Taiwan. Thanks to the Industrial Technology Research Institute (ITRI) which made it possible with a visionary initiative. Others like TSMC alongwith Hon Hai and the vastness of the Hsinchu tech park bear witness to what could be achieved with a focussed effort in the right direction!
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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