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Flextronics International Ltd. -
Contract Manufacturers - Category Directory
(65)
6890 7188
One
Marina Boulevard, #28-00
Singapore 018989
www.flextronics.com
Sales
$14.5
billion
Business Description
We are a leading provider of advanced electronics manufacturing services
(EMS) to original equipment manufacturers (OEMs) that span a broad range of
products and industry segments, including cellular phones, printers and
imaging, telecom/datacom infrastructure, medical, automotive, industrial
systems and consumer electronics.
Through a combination of internal growth and acquisitions, we have become
one of the world’s largest EMS providers, with revenues of $14.5 billion in
fiscal year 2004 and over 12.5 million manufacturing square feet in 29
countries across five continents as of March 31, 2004. We believe that our
size, global presence, broad service offerings and expertise and advanced
engineering and design capabilities enable us to win large programs from
leading multinational OEMs for the design and manufacture of electronic
products.
Our customers include industry leaders such as Alcatel SA, Casio Computer
Co., Ltd., Dell Computer Corporation, Ericsson Telecom AB, Hewlett-Packard
Company, Microsoft Corporation, Motorola, Inc., Siemens AG, Sony-Ericsson,
Telia Companies, and Xerox Corporation.
We provide a complete range of services that are designed to meet our
customers’ product requirements throughout their product development life
cycle. Our strategy is to provide customers with global end-to-end supply
chain services that include design and related engineering, new product
introduction, manufacturing, and logistics with the goal of delivering a
complete packaged product. We also provide after-market services such as
repair and warranty services as well as network and communications
installation and maintenance. By working closely with our customers and
being highly responsive to their requirements throughout the design and
supply chain processes, we believe that we can be an integral part of their
operations, accelerate their time-to-market and time-to-volume production,
and reduce their product costs.
Our contract design and related engineering services include all aspects of
product design including industrial and mechanical design, hardware design,
embedded and application software development, semiconductor design, system
validation, and test development through which we offer our customers the
choice of full product development, system integration, cost reductions and
software application development.
In addition to the assembly of printed circuit boards (PCBs) and complete
systems and products, our manufacturing services include the fabrication and
assembly of plastic and metal enclosures, the fabrication of printed circuit
boards and backplanes and the fabrication and assembly of photonics
components. We have established an extensive network of manufacturing
facilities in the world’s major electronics markets (the Americas, Asia, and
Europe) in order to serve the increased outsourcing needs of both
multinational and regional OEMs. In fiscal year 2004, production in the
Americas, Asia, and Europe represented 14%, 45% and 41% of our net sales,
respectively.
We also combine our design and manufacturing services to design, develop and
manufacture complete products, such as cellular phones and other
consumer-related devices, which are sold by our OEM customers under the
OEM’s brand names. This service offering is referred to original design
manufacturing (ODM).
INDUSTRY OVERVIEW
Due to the intensely competitive nature of the electronics industry, ever
increasing complexity and sophistication of electronics products, pressure
on OEMs to reduce product costs, and increasingly shorter product
lifecycles, the demand for advanced manufacturing capabilities and related
services has grown rapidly, resulting in an increasing number of OEMs in the
electronics industry to utilize EMS providers as part of their business and
manufacturing strategies. This allows OEMs to take advantage of the global
design, manufacturing and supply chain management expertise of EMS
providers, in addition to EMS economies of scale, enabling OEMs to
concentrate on product research and development, marketing and sales. We
believe that by developing strategic relationships with EMS providers, OEMs
can enhance their competitive position by:
• Reducing production costs;
• Accelerating time-to-market and time-to-volume production;
• Reducing capital investment requirements and fixed costs;
• Improving inventory management and purchasing power; and
• Accessing worldwide design, engineering, manufacturing, and logistics
capabilities.
We believe that the market for electronics manufacturing services will
continue to grow, driven largely by the need of OEMs for increasing
flexibility to respond to rapidly changing markets and technologies and to
reduce manufacturing costs. OEMs also need advanced global design,
engineering and manufacturing capabilities to meet the increased complexity
and shorter life cycles of today’s electronic products.
COMPETITIVE STRENGTHS
Over the past several years, we have focused on the enhancement of our
business through the development of our various supply chain services. We
believe that the following competitive strengths differentiate us from our
competitors and enable us to better serve our customers:
End-to-End Solutions. We offer a comprehensive range of worldwide supply
chain services to our customers that simplify the global product development
process and provide meaningful time and cost savings. Our strategy is to
provide customers with global end-to-end supply chain services that include
design and related engineering, new product introduction, manufacturing, and
logistics with the goal of delivering a complete packaged product. We also
provide after-market services such as repair and warranty services as well
as network and communications installation and maintenance. Our capabilities
also help our customers improve product quality, manufacturability,
performance, and reduce costs. As part of our service offering, we provide
complete supply chain analysis on existing manufacturing strategies and
recommend an optimal supply chain solution to our customers utilizing our
global service footprint.
Extensive Design and Engineering Services. We provide contract design
services and a range of related engineering services which include all
aspects of product design, such as industrial and mechanical design,
hardware design, embedded and application software development,
semiconductor design, system validation and test development through which
we offer our customers the choice of full product development, system
integration, cost reductions and software application development.
We also combine our design and manufacturing services to design, develop and
manufacture complete products, such as cellular phones and other
consumer-related devices, which are sold by our OEM customers under the
OEM’s brand names.
We provide these design and engineering services through our global team of
over 2,500 product design engineers.
Global Presence. We have established an extensive network of design,
manufacturing and logistics facilities in the world’s major electronics
markets (the Americas, Asia and Europe) to serve the increased outsourcing
needs of both multinational and regional OEMs. Our extensive global network
of manufacturing facilities in 29 countries gives us the flexibility to
transition customer projects to any of our locations.
Low-Cost Manufacturing Services. In order to provide customers with the
lowest cost, we have invested in manufacturing facilities in low-cost
regions. As of March 31, 2004, greater than 70% of our manufacturing
capacity is in low-cost locations such as Mexico, Brazil, Poland, Hungary,
China, Malaysia and other parts of Asia. Currently, we believe we have the
leadership position in our industry with regard to low-cost production
capabilities. A number of OEM customers are continuing to relocate their
production to these locations, where our role in the local supply chain can
reduce total product costs for them.
As part of our low-cost manufacturing strategy, we have also established
fully integrated, high-volume Industrial Parks in Brazil, China, Hungary,
Mexico and Poland. These campuses provide total supply chain management by
co-locating our manufacturing and logistics operations with our suppliers at
a single low-cost location. This is designed to benefit our customers by
increasing flexibility while reducing distribution barriers, turnaround
times, and overall transportation and product costs.
STRATEGY
Our objective is to provide customers with the ability to outsource the
design and development of a complete product on a global basis. To achieve
this goal, we offer a complete supply chain solution that can be utilized in
whole or in part. The solution is designed to meet our customers’
time-to-market and time-to-volume objectives. Our overall strategy consists
of the following:
Expand Our Original Design Manufacturing Services. We have recently expanded
our design and manufacturing service offerings to include ODM services,
where we design, develop and manufacture complete products that are sold by
our OEM customers under their brand names. This expanded service offering
accelerates our customers’ time-to-market and time-to-volume production for
their products. As a result of increased customer demand and recent
acquisitions, we are actively pursuing ODM projects, focusing primarily on
consumer related devices, such as cellular phones and other consumer-related
products. We are utilizing our established internal design and manufacturing
resources, as well as increasing our research and development capabilities,
expanding our engineering resources, and by developing, licensing and
acquiring technology.
Capitalize on Our Industrial Park Concept. Our Industrial Parks are
self-contained facilities that co-locate our manufacturing and logistics
operations with our suppliers in low-cost regions. The industrial park
strategy is based on minimizing logistics costs throughout the supply chain
and production cycle time by co-locating a number of suppliers in one
low-cost location. Each park incorporates the manufacture of printed circuit
boards, components, cables, plastics and metal parts needed for product
assembly. This approach to production and logistics is designed to benefit
our customers by reducing distribution barriers and costs, improving
communications, increasing flexibility, lowering transportation costs and
reducing turnaround times. Our Industrial Parks enhance our total supply
chain management, while providing a low-cost solution for our customers. We
have strategically established large Industrial Parks in Brazil, China,
Hungary, Mexico and Poland.
Streamline Business Processes Through Information Technologies. We
incorporate advanced information technology to streamline business processes
for our customers. For example, we use innovative Internet supply chain
solutions to improve order placement, tracking and fulfillment. We are also
able to provide our customers with online access to product design and
manufacturing process information. Integrating our information systems with
those of our customers allows us to assist our customers in improving their
communications and relationships across their supply chain.
Pursue Strategic Opportunities. We have actively pursued acquisitions and
purchases of manufacturing facilities to expand our worldwide operations,
broaden our service offerings, diversify and strengthen our customer
relationships, and enhance our management depth. By enhancing our capability
to provide a wide range of related electronics design and manufacturing
services to a global market that is increasingly dependent on outsourcing
providers, these acquisitions and strategic transactions have enabled us to
enhance our competitive position as a leading provider of comprehensive
outsourcing technology solutions. We will continue to selectively pursue
strategic transactions that we believe will further our business objectives.
SERVICES
We offer a broad range of integrated services to provide customers with a
total design, manufacturing and logistics solution that takes a product from
its initial design through volume production, test, distribution and into
post-sales service and support. Our integrated services include:
Design Services. We offer a complete range of value-added design services
for our customers. These services include:
• Industrial Design: we design and develop innovative, stylish and
cost-effective products that address the needs of the user and the market.
These services include preliminary product exploration, market research, 2-D
sketch level drawings, 3-D mock-ups and proofs of concept, interaction and
interface models and detailed hard models.
• Mechanical Engineering: we offer detailed product and enclosure design for
static and dynamic solutions in both plastic and metal for low- to
high-volume applications.
• Tooling Design: we provide design and development of prototype and
production tooling equipment for manufacturing.
• Electronic System Design: we provide complete electrical design for
products ranging in size from small handheld consumer devices to large
high-speed telecommunications equipment, which includes embedded system and
DSP design, high speed digital interfaces, analog circuit design, power
management solutions, wired and wireless communication protocols, display
and storage solutions, imaging and audio/video applications, and RF system
and antenna design.
• Semiconductor Design: we design and deliver digital, analog and
mixed-signal integrated circuits with resources that include high complexity
application specific integrated circuit (ASIC), design capabilities, gate
array, standard cell and custom architectures, field programmable gate array
design services and advanced packaging technologies.
• Optical Design: we offer a comprehensive set of resources to provide
design, test, industrialization and manufacture of custom photonic
components, optical modules and subsystems. Our offering includes active and
optical component package capability, design of passive optical components,
development of optical modules and control electronics and complex optical
and electrical integration.
• PCB Design: we provide complete PCB design services, incorporating high
layer counts, advanced materials, component miniaturization technologies,
and signal integrity.
• Software Development: we design and develop software and applications for
product and systems design, test, maintenance and end-user interface, as
well as product applications such as device drivers, embedded applications,
communications protocols, DSP algorithms and web applications.
We work with our customers to optimize product design to drive efficiencies
in both the product development and the production processes to reduce
time–to-market and overall product costs.
Original Design Manufacturing Services. We combine our design and
manufacturing services to design, develop and manufacture complete products,
such as cellular phones and other consumer-related devices, which are sold
by our OEM customers under the OEM’s brand names.
Printed Circuit Board Fabrication. Printed circuit boards are platforms that
are made of laminated materials and provide interconnection for integrated
circuits and other electronic components. Semiconductor designs are
currently so complex that they often require printed circuit boards with
many layers of narrow, densely spaced wiring. The manufacture of complex
multilayer interconnect products often requires the use of sophisticated
circuit interconnections between layers, referred to as vias, and adherence
to strict electrical characteristics to maintain consistent circuit
transmission speeds. We are an industry leader in high-density, multilayer
printed circuit board manufacturing. We manufacture printed circuit boards
on a low-volume, quick-turn basis, as well as on a high-volume, production
basis. Our quick-turn prototype service allows us to provide small test
quantities to customers’ product development groups in as little as 24
hours. Our range of services enables us to respond to our customers’ demands
for an accelerated transition from prototype to volume production. We have
printed circuit board fabrication service capabilities on three continents,
including South America, Europe and Asia.
Systems Assembly and Manufacturing. Our assembly and manufacturing
operations, which reflect the majority of our revenues, include printed
circuit board assembly, assembly of systems and subsystems that incorporate
printed circuit boards and complex electromechanical components. A
substantial portion of our net sales is derived from the manufacture and
assembly of complete products. We often assemble printed circuit board
assemblies that we manufacture with printed circuit boards and custom
electronic enclosures that we also produce. We employ just-in-time,
ship-to-stock and ship-to-line programs, continuous flow manufacturing,
demand flow processes, and statistical process controls. As OEMs seek to
provide greater functionality in smaller products, they increasingly require
more sophisticated manufacturing technologies and processes. Our investment
in advanced manufacturing equipment and our experience and expertise in
innovative miniaturization, packaging and interconnect technologies, enable
us to offer a variety of advanced manufacturing solutions. In addition, we
have extensive experience in the manufacture of wireless communications
products employing radio frequency technology.
We offer a comprehensive set of custom electronic enclosures and related
products and services worldwide. Our services include design, manufacturing
and integration of electronics packaging systems from custom enclosure
systems, power and thermal subsystems to interconnect subsystems, cabling
and cases. In addition to the typical sheet metal and plastic fabrication,
we assist in the design of electronic packaging systems that protect
sensitive electronics and enhance functionality. Our enclosure design
services focus on functionality, manufacturability and testing. These
services are integrated with our other assembly and manufacturing services
to provide our customers with greater responsiveness, improved logistics and
overall improved supply chain management.
We also offer computer-aided testing of assembled printed circuit boards,
systems and subsystems, which contributes significantly to our ability to
deliver high-quality products on a consistent basis. Our test capabilities
include management defect analysis, in-circuit testing and functional
testing. In addition, we also provide environmental stress tests of board
and system assemblies.
Our manufacturing and assembly services benefit from our inventory
management expertise and volume procurement capabilities, which contribute
to cost reductions and reduce total cycle time. Materials procurement and
management consist of the planning, purchasing, expediting and warehousing
of components and materials used in the manufacturing process. Our
Industrial Parks house providers of many of the custom components that we
use to reduce material and transportation costs, simplify logistics and
facilitate inventory management. We also use sophisticated automated
manufacturing resources planning systems and enhanced electronic data
interchange capabilities to ensure inventory control and optimization.
Through our manufacturing resources planning system, we have real-time
visibility on material availability and real-time tracking of work in
process. We utilize electronic data interchange with our customers and
suppliers to implement a variety of supply chain management programs.
Electronic data interchange allows customers to share demand and product
forecasts and deliver purchase orders while also assisting suppliers with
just-in-time delivery and supplier-managed inventory.
We offer customers flexible, just-in-time delivery programs allowing product
shipments to be closely coordinated with customers’ inventory requirements.
Increasingly, we ship products directly into customers’ distribution
channels or directly to the end-user. We believe that this service can
provide our customers with a more comprehensive solution and enable them to
be more responsive to market demands.
We also provide design, industrialization, supply chain management and
manufacturing services for the optical component and optical networking
industries. We offer a broad range of photonic packaging design and
industrialization services to assist in bringing products from schematics to
shipment while meeting our customers’ time-to-market objectives. In
addition, we offer advanced process development and volume manufacturing of
active and passive photonic devices.
Logistics. We provide global logistics services and turnkey supply chain
solutions for our customers. Our worldwide logistics services include
freight forwarding, warehousing/inventory management and outbound/e-commerce
solutions through our global supply chain network. We leverage new
technologies such as XML links to factories, extranet-based management,
vendor managed inventory and build-to-order programs, to simultaneously
connect suppliers, manufacturing operations and OEM customers. By joining
these logistics solutions with worldwide manufacturing operations and total
supply chain management, we can significantly reduce costs and can create
tightly integrated processes and facilities worldwide. Moreover, the
combination of these capabilities allows us to react quickly to demand
signals from our customers worldwide.
Reverse Logistics. We provide a range of after-market services, including
product repair, re-manufacturing and maintenance at repair depots, logistics
and parts management, returns processing, warehousing, and engineering
change management. We support our customer by providing software updates and
design modifications that may be necessary to reduce costs or design-in
alternative components due to component obsolescence or unavailability.
Manufacturing support involves test engineering support and
manufacturability enhancements. We also assist with failure product
analysis, warranty and repair, and field service engineering activities.
Network Services. We offer network and communications installation and
maintenance services to OEMs in the data and telecommunications industries.
Our services include project planning, documentation, engineering,
production, installation and commissioning of equipment. We have expertise
in the installation of public and mobile telecommunications systems,
exchanges, corporate networks and peripheral equipment.
CUSTOMERS
Our customers include many of the world’s leading technology companies. We
have focused on establishing long-term relationships with our customers and
have been successful in expanding our relationships to incorporate
additional product lines and services. In fiscal year 2004, our ten largest
customers accounted for approximately 64% of net sales. Our largest
customers during fiscal year 2004 were Hewlett-Packard and Sony-Ericsson,
each accounting for approximately 12% of net sales. No other customer
accounted for more than 10% of net sales in fiscal year 2004.
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