News and Research on Nam Tai Electronics, Inc. (NTE)
Business Description
Nam Tai Electronics, Inc. provides electronics manufacturing and design services to a group of the original equipment manufacturers (OEMs) of telecommunications and consumer electronic products.
Through its electronics manufacturing services operations, the company manufactures electronic components and subassemblies, including LCD panels, LCD modules, RF modules, DAB modules, FPC subassemblies, image sensors modules and PCBAs for headsets containing Bluetooth wireless technology. These components are used in various electronic products, including mobile phones, laptop computers, digital cameras, electronic toys, handheld video game devices, entertainment devices.
It also manufactures finished products, including mobile phone accessories, home entertainment products and educational products. It assists its OEM customers in the design and development of their products and furnishes manufacturing services that utilize advanced manufacturing processes and production technologies. Its services include hardware and software design, component purchasing, assembly into finished products or electronic subassemblies and post-assembly testing. It also provides original design manufacturing, or ODM, services, in which it designs and develops proprietary products that are sold by its OEM customers using their brand name.
Products
The company’s operations are organized into three reportable segments, consisting of consumer electronics and communication products, or CECP, telecommunication components assembly, or TCA, and liquid crystal display, or LCD products, or LCDP.
Consumer Electronic and Communication Products (CECP)
The consumer electronic and communication products that the company manufactures are primarily finished products and include: Optical devices, such as CMOS sensor modules; Entertainment devices, such as USB camera accessory, USB microphone and converter box, controller for a music quiz game and a gaming device for mobile phones; Mobile phone accessories, such as Bluetooth wireless headsets, a snap-on speaker, a snap-on card holder and snap-on flash lights; Educational products, such as digital pens, calculators and electronic dictionaries; and Software development services principally for electronic dictionary products for major Japanese customers. It focuses on research and development for car navigation products.
Telecommunication Component Assembly (TCA)
The company manufactures the following sub-assemblies and components: Color and monochrome LCD modules to display information as part of telecommunication products such as mobile phones and telephone systems. Its LCD modules could be manufactured for use in other hand-held consumer electronic devices, such as electronic games and digital cameras; RF modules for integration into mobile phones. RF modules are partially finished circuits that can be incorporated into larger products or components. They include receivers, transmitters, and transceivers. These modules could be manufactured for use in other hand-held consumer electronic products, such as PDAs, laptop computers and other products with wireless connectivity; DAB modules are digital audio broadcasting components that are used in digital radio products such as home tuners, kitchen radios, in-car receivers, CD players, clock radios, boom boxes, midi-systems and handheld portable devices; FPC subassemblies for integration into various LCD modules; Front light panels for handheld video game devices; Back light panels for handheld video game devices; and 1.9 high-frequency cordless telephones and home feature phones.
LCD Panels (LCDP)
LCD panels are found in various applications in electronics products, such as watches, clocks, calculators, pocket games, PDAs and mobile and cordless telephones, and car audio systems.
Suppliers
The company purchases Integrated circuits or ‘chips’ from Cambridge Silico Radio Plc, Toshiba Corporation, Sharp Corporation and certain of their affiliates
LCD panels, which are available from various manufacturers. In 2006, the company purchased LCD panels from Epson Hong Kong Ltd., Suzhou Epson Co. Ltd., Nanya Plastic Corporation and Safaring Technology Co. Ltd. The company’s subsidiary J.I.C. group also produces LCD panels for the NTEEP group.
In 2006, the company purchased FPC boards from Z. Kuroda (Hong Kong) Co. Ltd. and Kyoshin (Hong Kong) Co., Ltd.
CMOS sensors: The Company purchases from Omnivision Technologies, Inc.
The company purchases Light-emitting diodes, or LEDs from Sharp Electronic (Malaysia) Sdn. Bhd.
The company purchases CMOS imaging sensors from Omnivision Technologies Inc.
The company sources various acoustic components form Minami Acoustics Limited and Lexin (Japan), Ltd.
Customers
The company’s major customers include Hikari Alphax Co., Ltd.; GN Netcom; Sanyo Epson Imaging Devices (HK) Limited (formerly known as Epson Precision (HK), Ltd.); Sharp Corporation; Sony Computer Entertainment Europe, Ltd.; Sony Ericsson Mobile Communications AB; Sumitronics Hong Kong, Ltd.; Texas Instruments Incorporated; Uniden HK, Ltd.; and Wuxi Sharp Electronic Components Co., Ltd.
Competition
The Company’s EMS competitors include Celestica, Inc.; Flextronics International, Ltd.; Hon Hai Precision Industry Co., Ltd.; Jabil Circuit, Inc.; Sanmina-SCI Corporation and Solectron Corporation. In the Image capturing devices and their modules, it competes with Lite-On Technology Corporation, Logitech International S.A., and The Primax Group. Its principal competitors in the manufacture of mobile phone accessories include Elcoteq Network Corp; Balda-Thong Fook Solutions Sdn. Bhd.; and WKK International (Holdings), Ltd. Its competitors in the manufacturing of RF modules include Wavecom and WKK International (Holdings), Ltd. Its competitors in the manufacturing of LCD panels include Truly International Holdings, Ltd., Elec & Eltek International Holdings Limited and, Varitronix International, Ltd. Its competitors in the telecommunication, sub-assemblies and components product lines include Philips, Samsung, Solectron and Varitronix International, Ltd. Its principal competitors in the manufacture of traditional product lines of calculators, personal organizers and linguistic products include Kinpo Electronics, Inc. and Inventec Co., Ltd.
History
Nam Tai Electronics, Inc. was founded by M. K. Koo in 1975.
