International vendors have released increasing ODM orders for business-use networking/communication equipment to Taiwan-based makers, according to Samuel Chang president of Accton Technology.
Vendors used to collaborate with Taiwan-based makers to develop/design products for production, but some of them have adopted a hands-off model, giving specifications and leaving Taiwan-based makers responsible for product development, Chang said. The new model is a challenge as well as an opportunity for higher gross margins for Taiwan-based makers with design capabilities, Chang explained.
Based on production of business-use and telecom networking equipment for many years, Accton has built up its technological capability, enabling the company to obtain hand-off ODM orders on a long-term basis, Chang said. Accton has received ODM orders for shipments scheduled for the fourth quarter of 2011, with revenues for the second half of the year to be more than in the first half, Chang said.
Article translated by Adam Hwang
