Flextronics to form handset ODM team in Taiwan, say sources

Flextronics International plans to set up a handset ODM team in Taiwan in order to compete effectively with local handset makers for ODM orders from brand vendors such as Sony Ericsson and LG Electronics (LGE), according to industry sources.

Flextronics is contacting a certain team, and the company is expected to form its ODM operations in Taiwan by the end of 2009 at the earliest, the sources indicated.

Although Flextronics has managed to land handset orders from Sony Ericsson, LGE, Motorola and a number of Japan-based vendors, these orders have mostly been EMS (electronics manufacturing service) orders instead of ODM ones, the sources commented.

A strong ODM team will add strength to Flextronics' global production bases and component manufacturing capabilities in camera modules, antennas, casings, panels and PCBs, said the sources.

The build-up of ODM capability by Flextronics is likely to have an impact on the current production partners of Sony Ericsson and LGE, including Arima Communications, Compal Communications, Foxconn International Holdings (FIH) and Chi Mei Communication Systems (CMCS), the sources asserted.