Gartner Research

Market Insight: Four Business Risks for Semiconductor Revenue From ODM/EMS Companies, 2016

Published: 13 July 2016

ID: G00295431

Analyst(s): Amy Teng , Ben Lee , Andrew Phillips


Semiconductor companies get chip "design-in" opportunities when OEMs initiate a new electronic design, but as the production life cycle progresses, there are risks of losing the design-in. We discuss four risk scenarios that semiconductor business unit leaders must prepare for and mitigate.

Table Of Contents


  • Qualifying Chips for Proof of Concept (POC) Prototyping
  • Qualifying Chips for First-Generation Electronics
  • Qualifying Chips for Refreshed (Second-Generation) Products
  • Selling/Shipping Chips for Electronics Production

Background and Context

  • EMS Outsourcing Example: Hon Hai Manufacturing the Apple iPhone
  • High-Touch Outsourcing Example: ODM/EMS Companies Manufacture Servers
  • Low-Touch Outsourcing Example: Quanta Manufacturing OCP-Compliant Stack Servers for Facebook
  • No-Touch Outsourcing Example: Netronix Manufacturing E-Readers

The Impact


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