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5-10 working days Harris Corporation to Outsource PCB Assembly
Manufacturing to Sanmina Corporation
--------------------------------------------------------------------------------
MELBOURNE, Florida, January 10, 2000 - Harris Corporation
today announced that it has entered into an agreement with
Sanmina Corporation to outsource its printed circuit board
assembly (PCBA) manufacturing for its commercial businesses.
Outsourcing PCBA manufacturing will not only lead to lower
operational costs for the company, but more significantly,
will reduce the level of future investment needed to meet
the demands of growth and expansion. With the outsourcing
in place, management can more effectively focus its resources
on the higher value-added areas of R&D, new product development,
marketing, distribution and customer service - all of which
lead to next level solutions for customers.
Pursuant to the agreement, Sanmina will buy Harris' PCBA manufacturing
assets and inventory and will lease a portion of Harris' state-of-the-art
manufacturing facility in San Antonio, Texas. Employees involved
with Harris' San Antonio PCBA manufacturing facility will
be offered employment by Sanmina. The transaction, which is
expected to close in early February, is subject to regulatory
approval and other customary conditions.
"This agreement amplifies the commitment to our customers
that providing new product development and product delivery
is our number one focus," said Van Cullens, president
and chief operating officer of Harris Corporation. "Outsourcing
our PCBA manufacturing will enable Harris to reduce our overall
manufacturing costs, improve our operational capabilities
and financial agility, and improve our time-to-market for
new products around the world. Having Sanmina as our manufacturing
partner continues the evolution of the new Harris business
model as a 'pure-play' communications solutions provider."
Sanmina Corporation, a rapidly growing electronics manufacturer
with revenue of $1.2 billion in fiscal 1999, is one of the
largest electronic contract manufacturing services company
in the world. In addition, Sanmina has the geographic coverage
to meet the needs of Harris' global presence. With over 30
manufacturing facilities, Sanmina's unique capabilities provide
cost-effective solutions that meet the needs of enterprises
at the forefront of communications, industrial and medical
instrumentation, and high-end computer systems.
"We are delighted that we could broaden our partnership
with Harris Corporation," added Jure Sola, chairman and
chief executive officer of Sanmina Corporation. "By providing
Harris with full PCBA manufacturing capabilities for its commercial
operations, Sanmina will ensure that Harris achieves a greater
focus on serving the needs of customers in providing leading
edge products."
Harris Corporation (NYSE-HRS) is an international communications
equipment company focused on providing product, system, and
service solutions that take its customers to the next level.
The company provides a wide range of products and services
for commercial and government communications markets such
as wireless, broadcast, government, and network support. The
company has sales and service facilities in nearly 90 countries.
Additional information about Harris is available at www.harris.com.
Sanmina Corporation (Nasdaq NM: SANM) is a leading electronics
contract manufacturing services company providing a full spectrum
of integrated, value-added electronic manufacturing services.
Services include the manufacture of complex printed circuit
board assemblies, custom-designed backplane assemblies and
subassemblies, multi-layered printed circuit boards and custom
cable and wire harness assemblies, enclosures, and the testing
and assembly of electronic sub-systems and systems. The company
provides these services to a diversified base of leading OEMs
in the communications, industrial and medical instrumentation
and computer sectors of the electronics industry. More information
regarding Sanmina can be found at www.sanmina.com.
--------------------------------------------------------------------------------
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Harris Corporation to Outsource PCB Assembly Manufacturing
to Sanmina Corporation
Edge: Work-Group Computing Report, Jan 17, 2000 E-mail Print
Link Harris Corporation Monday announced that it has entered
into an agreement with Sanmina Corporation to outsource its
printed circuit board assembly (PCBA) manufacturing for its
commercial businesses. Outsourcing PCBA manufacturing will
not only lead to lower operational costs for the company,
but more significantly, will reduce the level of future investment
needed to meet the demands of growth and expansion. With the
outsourcing in place, management can more effectively focus
its resources on the higher value-added areas of R&D,
new product development, marketing, distribution and customer
service - all of which lead to next level solutions for customers.
HOME::Business/Outsourcing X
Outsourcing Electronics Manufacturing To Asia
By Lydia Quinn
Article Word Count: 370 [View Summary] Comments (0)
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www.gm-gi.comWhile the outsourcing industry in the United
States has been a source of recent fear and controversy, America’s
history of outsourcing dates back to the industrial revolution
of the late 17th century. Covered wagons were covered and
clipper ships sailed with outsourced products from Scotland,
with raw materials originating from India. Even the ancient
Chinese and Japanese empires outsourced to their conquered
nations. In the United States many computer companies outsourced
payroll processing during the 1970s and 1980s.
Globalization, explosive Internet growth, and development
of an information society has made outsourcing an integral
part of the world economy. American companies such as Intel
and Sun Microsystems maintain large research and development
departments outside the United States. The United States has
a depleting talent pool in technical fields, while China produces
the largest number of computer engineers every year. Software
outsourcing is a $1.5 billion market in China with an annual
growth rate of around 35%.
Although the Asian market for IT outsourcing is promising,
it does suffer from a lack of English language proficiency
and Chinese companies do not have established quality control
procedures such as those which are commonplace in India. The
problem of software piracy in China does not help it become
a credible destination for software development either. While
the Internet is spreading in Southern Asia, a weak infrastructure,
antiquated legislations, language barriers and the cost of
Internet access seem to be hampering growth in IT outsourcing
opportunities.
Therefore, the future of outsourcing in Asia may not be in
the expected areas of IT services; it seems to be making a
move towards electronics manufacturing and design. Among a
diversity of services currently being outsourced to Asia are
printed circuit board manufacturing, including complete layout
design and creation. Electronics manufacturing in Asia takes
advantage of the inexpensive labor costs. The industry recognizes
the region’s increasing proficiency in computer and electronics
engineering, while avoiding many of the pitfalls which have
been experienced with IT outsourcing in the region.
The IT sector has proven offshore outsourcing can succeed,
however the largest opportunities in outsourcing are yet to
be realized. It is evident the practice of outsourcing electronics
manufacturing to Asia will be an integral element of future
outsourcing trends.
Lydia Quinn writes Standard Printed Circuit Board Ltd., leaders
in providing world class printed circuit board manufacturing
located in Hong Kong. Visit us at http://www.standardpcb.com/
Article Source: http://EzineArticles.com/?expert=Lydia_Quinn
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MLA Style Citation:
Quinn, Lydia "Outsourcing Electronics Manufacturing To
Asia." Outsourcing Electronics Manufacturing To Asia.
13 Jun. 2007. EzineArticles.com. 21 Jul 2008 <http://ezinearticles.com/?Outsourcing-Electronics-Manufacturing-To-Asia&id=605581>.
APA Style Citation:
Quinn, L. (2007, June 13). Outsourcing Electronics Manufacturing
To Asia. Retrieved July 21, 2008, from http://ezinearticles.com/?Outsourcing-Electronics-Manufacturing-To-Asia&id=605581
Chicago Style Citation:
Quinn, Lydia "Outsourcing Electronics Manufacturing To
Asia." Outsourcing Electronics Manufacturing To Asia
EzineArticles.com. □ Concept Prototyping
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First came manufacturing. Now companies are farming out R&D
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As the Mediterranean sun bathed the festive caf▽s and shops
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Home ? Benchmarks & Best PracticesUpdated: 07/20/2008
Contract manufacturing risk mitigation and risk management
As contract manufacturing business development wins more OEM
programs, the risk of the contract manufacturer not being
able to recover his investment decreases because similar outsource
product manufacturing programs often have similar startup
support requirements.
Direct cost, total cost of ownership, and reducing risk in
low cost locations
Countries in low cost regions such as Asia and Eastern Europe
may well be better positioned for many high volume manufacturing
product needs. Furthermore, in many instances, these geographies
may be ideal for offering a stronger ROI when executives are
engaged in high-volume production.
Contract pricing, profits, and OEM direct costs
While there are some common outsourcing manufacturing contract
formats, no two contracts are identical and, there is no viable,
common platform that can be applied to every outsourcing contract
pricing model with regards to either party’s profits.
5 improvement opportunities ranked by contract manufacturers
Our survey asked electronics contract manufacturers, original
design manufacturers, and prototype houses to rank, in order
of importance, their top 5 improvement opportunities. Read
what they selected.
Supply chain contract delivery schedules, schedule changes,
liability
Typically, what many OEMs are presented with from their contract
manufacturing partners, with regards to supply chain contract
scheduling and schedule changes, allows for schedule changes
to occur but there is a limit to the degree of change in manufactured
product volumes delivered.
Vietnam offshoring and outsourcing contract manufacturing
A few of the electronics companies currently manufacturing
in Vietnam include Intel, Canon, and contract manufacturing
and design companies Spartonics, Mechatronics Engineering
Group and, MiTAC Precision Technology.
Outsourcing cost reductions and benefits
This article breaks down the outsourcing cost and savings
analysis for an OEM outsourcing program while also presenting
the contract manufacturer’s cost of performing supply chain
management services for the OEM customer’s business.
Program management responsibilities and activities
Program management responsibilities inside the contract manufacturer
can vary based on the type of products going into production
and the industry in which manufacturing takes place.
Startup company product contract manufacturing and design
outsourcing
Startup executives can refer to this plan to help them review
internal depth and scope capabilities against anticipated
company capability requirements so they may then determine
at what point it may make sense to consider evaluating and
engaging a contract product design partner or contract manufacturing
partner.
Manufacturing problems and alerts
Based on the severity of the manufacturing issue in the contract
manufacturing facility, alerts can have varying stages, or
levels, of importance such as stage one, stage two, or stage
three
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