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This strategy has won Hon Hai blue chip customers that continue to contribute to its growth.
Demand for low-cost Asian operations is transforming the EMS industry.
Hon Hai’s size means that its numbers have the weight to skew results for the entire EMS industry.
As mentioned earlier, the 21 EMS providers grew sales at an aggregate rate of 14.3% in the first half.
But without Hon Hai, combined growth dropped almost 10 points to a less appealing 4.6%, the same rate produced by the US-traded companies.
Excluding Hon Hai, first-half growth rates among the Asia-, Europe- and US-traded groups varied between 2.7 and 5.8% (Chart 3).
Although the group only averaged a 5.8% revenue gain for the first half, Partner Tech increased its first-half revenue by 39.5% in US dollars, or 48.6% in SEK (Swedish krona).
Propelled by higher rates, ODMs have come a long way in the last five years or so. The 10 large ODMs tracked by MMI now account for more sales than do the nine largest US-traded EMS providers.