Solectron

In: Business and Management

Submitted By kisaqwe123
Words 731
Pages 3
Global electronics manufacturing company for original equipment manufacturers. It was the first electronics manufacturing services industry in 1977. Solectron's first customer designed and distributed an electronic controller for solar energy equipment. The name "Solectron" was a portmanteau of the words "solar" and "electronics". The company was acquired by Flex on October 15, 2007.
Solectron was established in 1977 to provide outsourced manufacturing services to third parties. It was a major manufacturer, but you would have not found its name on any products.
The company was the world´s premier supply chain integrator, with $18.7 billion in annual revenue. However, the economic downturn of 2001 hit the company hard. Also, while revenue for the first quarter of fiscal 2001 were twice that of the same quarter in the previous year, quarter-to-quarter revenue decreased each quarter during fiscal 2001, with a 27 percent decrease from Q2 to Q3. The stock had fallen 77 percent from it is high, and market capitalization was just 40 percent of annual revenue, and the company had laid off 20000 of it is 80000 workers and closed facilities.
The electronic manufacturing services industry
The electronic manufacturing services industry grew out of a large number of small jobs shops that manufactured assemblies for clients. Clients OEMs, would often use these shops to increase their own production skills, or to offload production that did not contribute to their competitive advantage.
The company Solectron grew rapidly during the 80s and 90s, becoming the dominant company in the industry by the mid-90s.
Solectron founder Roy Kusumoto saw a growing number of electronics companies in California's Silicon Valley. There was a need to provide printed circuit board assembly (PCBA) services, handling the manufacturing overflow from OEMs. Solectron aimed to provide high-tech…...

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