The ongoing trend of outsourcing manufacturing activities is expected to remain strong as electronics manufacturing services providers from North America, Europe, and Japan continue to expand and migrate to lower-cost locations in Asia. Although these EMS providers would prefer to make investments in vast markets such as China, these low-cost locations in Asia minimize their risks of concentrating on just one geographical area.
Price pressure at the end markets and increased competition will further accelerate this outsourcing trend as EMS providers seek to leverage their vertical capabilities to lower product costs and time-to-market to provide them with competitive differentiation.
