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The birth of the CM Industry was marked by IBM 's entry into the PC market in 1981, which started a trend to outsource what was considered outside core competence. This sparked a feedback cycle of outsourcing, giving the ECM companies a way to obtain better economies of scale. Also, many OEMs sold off their production units to ECMs. For instace Swedish telecommunications manufacturer Ericsson sold seven plants in Sweden to Flextronics and Solectron in 1997. Is it believed that this development has in general led to a shift in market power from OEMs to large ECMs, and has lead to a rapid centralization of the CM Industry . The key ECM companies today are Foxconn , Solectron , Flextronics , Sanmina-SCI , Celestica and Jabil Circuit , mainly operated from North America and Taiwan . As ECMs grew larger, many of them developed into EMS (Electronic Manufacturing Service) companies to offer a broader spectrum of services in addition to manufacturing. Today the trend continues even further, with many EMS becoming what is caller Original Design Manufacturer s, offering complete electronic products for companies such as Wal-Mart , skipping the OEMs all-together. SEE ALSO EXTERNAL LINK |
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