Tuesday, March 27, 2007
Foxconn Electronics said it is interested in consolidating with second-tier memory module makers with Pan Ram International and Unifosa both named as potential candidates.
News regarding Foxconn's interest in the memory module business started circulating in 2006. Foxconn's broad business coverage provides a strong reason for it to extend its presence into memory modules in order to shrink component costs and enhance production efficiency for its motherboard and graphics card businesses..
Unifosa currently has about 70% of its memory module sales contributed by PC OEMs with Acer and Asustek Computer as the two major customers. It also runs limited own-brand memory module sales in the US and limited NAND flash applications sales.
Industry players pointed out that Foxconn procures a considerable amount of DRAM modules and has stable partnerships with memory module makers from both China and Taiwan. Foxconn is likely to extend its presence by a potential merger, which implies that those first-tier memory module houses who have run their own-brand product sales for years are unlikely to be partners of the EMS, the players further commented
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