Connector Industry Reshuffles After Hon Hai Moves Into NB PC Biz

Taipei, July 3, 2009 (CENS)--An increasing number of notebook-PC contract manufacturers in Taiwan are shifting their connector orders to new suppliers after Hon Hai Precision Ind. Co. Ltd., the world's largest maker of connector and a leading EMS (electronics manufacturing services) provider, stepped into notebook PC contract production.

Industry sources say that each NB PC uses 30 to 40 connectors, one of Hon Hai's profit-makers. So, more and more NB PC contract manufacturers are looking for other connector suppliers to counter Hon Hai's entry into the already-competitive business.

Industry insiders say that Hon Hai's core competitiveness in the NB PC business lies in its development and production ability of connectors, especially those CPU connectors. Other notebook PC makers have sped up finding new connector suppliers to assure the supply of such key parts.

Quanta, currently the world's largest contract manufacturer of notebook PCs, for example, recently invested in connector maker Suyin Corp. Asustek Computer Inc., the world's largest maker of computer motherboards, has been integrating unlisted connector suppliers or even recruiting people from Cheng Uei Precision Industry Co., Ltd. of the Hon Hai Group.

Wanshih president Lin Jann-lieh pointed out that his company has gradually become the first-tier supplier to major contract notebook PC makers in Taiwan. In the second quarter, the monthly capacity of mini coaxial cables is two million-some but the order volume has passed three million units.

A senior executive at Singatron Enterprise Co., Ltd., another major connector maker, said that Hon Hai's entry into the notebook PC line would definitely cause the four major players to shift their connector orders to other suppliers. Compal and Wistron Corp., for example, he said, have placed orders with Singatron for most of their connectors.