SMTA International Conference Proceedings


HOW SANMINA-SCI DETERMINED ITS ALTERNATIVE ENERGIES STRATEGY

Authors: Sundar M. Kamath, Ph.D.
Company: Sanmina-SCI Corporation
Date Published: 10/4/2009   Conference: SMTA International


Abstract: The Alternative Energy (AE) market is being viewed by some as the next wave of growth for the Electronics Manufacturing Services (EMS) industry. This is welcome news given the current slow down in the more mature markets like communications, computing, and consumer electronics. However, several important questions must be addressed at length in order to assess the true potential of this emerging opportunity for EMS companies. How credible are the predicted growth rates and timelines for various energy options like solar, wind, fuel cells, battery systems, etc. given the changing economic conditions? Which AE sectors should EMS companies really focus on to capitalize on the growth potential? How are these energy solutions positioned relative to clean (and green) technologies like water purification, energy harvesting, alternative lighting solutions (LEDs), smart grid, and so on? What are the engineering and manufacturing needs of the various AE technologies? How do these needs fit with the capabilities and experience base of traditional EMS providers with their heavy emphasis on electronic hardware manufacturing?

These were some of the questions that were considered in Sanmina-SCI’s strategy determination for the AE market. Market size and growth rates, participation by large Original Equipment Manufacturers (OEMs), and capability and/or overall fit with market needs all featured prominently in the Company’s strategy assessment exercise. Ultimately, the dynamics of the high-growth AE segment makes strategy definition an ongoing and evolving process that must quickly adapt to shifts in the AE marketplace, such as the reality of financing large power projects in a tough economy.

Key words: Sanmina-SCI, Alternative Energy, Market Strategy, Electronic Manufacturing Services, Mechanical Systems.



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