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From: EBN Magazine December 17, 2001 Invading foreign EMS companies BY CLAIRE SERANT As large, foreign EMS providers set up shop in southern China, one small electronics contractor is not concerned about the newcomer's size or economic clout. That's because Janifast Ltd. Has found itself a successful niche, specializing in making telecom products with microwave and RF filters, cavity filters, satellite receivers/decoders, and wireless terminals. The company counts Microphase Corp., Norwalk, Conn., and France's Alcatel S.A. among its clients. "Anything wireless or broadband requires RF capabilities," said Ken K.C. Chau, general manger and director of Janifast, which is based in the city of Nanhai in Guangdong province. Janifast's RF skills helped it generate sales of $15 million last year. The five-year old company expects lower sales – about $10 million to $12 million – this year due to the softer economic environment. Janifast is one of several Chinese EMS companies that are carving out niche services to woo foreign major and midtier OEMs into their plants. "We want to support OEMs that are looking to expand their services in the Far East," Chau said. "Our pricing is on par with the larger EMS companies in China because we're experts at what we do." Some OEMs are willing to pay a premium for smaller EMS providers' expertise, according to Robert G. Freid, president of Contract Manufacturing Consultants Inc., Bellevue, Wash. "A small EMS company could have expertise in RF testing and
test equipment, also there's a lot of hand soldering work involved rather
than just automated assembly," Freid said. "If a company like Alcatel is
interested in [a company of Janifast's size], it's not just for their low
labor rate but for their specialized skill." |