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NEC Outsources 3G Production To China

August 11, 2003 - source: BWCS

The Japanese mobile handset vendor NEC has contracted the Chinese OEM Solectron to manufacture its 3G devices. NEC will immediately move its 3G handset production operation to Solectron’s factory in Suzhou, China. The Japanese company is hoping that the move to outsourced production will result in significant cost savings and also a faster time to market.

The outsource agreement covers NEC’s 2.5G and 3G handsets for overseas markets. Production of devices for its domestic market will remain in Japan. NEC is upping its production of next- generation mobile devices for international markets to five times their 2002 levels in an attempt to win a larger share of the global market.

Solectron is one of a growing band of mobile handset OEMs and ODMs that now operate out of mainland China. Over the past two years a large number of Chinese electronics manufacturers have moved into cellular handset production in partnership with overseas vendors. Major mobile manufacturers such as Nokia, Motorola and SonyEricsson are also investing heavily in their Chinese operations with a view to producing handsets for both the huge domestic market and for overseas customers.

 


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