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Topscom targets lucrative telecom, PC markets

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Contract manufacturing service

Frank Wu, CEO of Topscom

The company tailors its EMS and ODM strategy to meet robust demand for smartphones, 3G handsets and tablet computers.

Topscom Precision Industry Co. Ltd is a major EMS provider catering to the automotive, industrial, medical, consumer electronics and telecom sectors. It is also an ODM of mobile phones and tablet PCs.

In an interview with Global Sources, CEO Frank Wu shares how the company will take advantage of recovering demand despite labor and cost challenges.

What is the company's plan for its product lines in coming months?

We plan to concentrate on smartphone, 3G handset, tablet PC, mobile Internet device and expandable cordless phone system ODM and OEM this year. The market demand for the first three is relatively large as they are key trends. We expect these sectors to keep expanding in coming months.

What do you think of the prospects of EMS this year?

I think the EMS business will grow at a much healthier rate this year than last. A number of major IC companies stopped production in 2010 due to the economic recession so stocks are not sufficient. As the economy recovers, suppliers are optimistic demand will follow. We can see this happening now from how our clients are doing. In contrast, sales were not so good in the past few months.

Are you affected by the labor shortage? How is Topscom dealing with it?

Yes. We have established contract agreements with schools and universities in inland provinces, which also provide training to prospective employees. For the new generation of workers, especially those that entered the labor force in the 1990s, a more attractive salary and benefits package is needed to attract them. So we offer better wages. The company also tries to improve their living and work conditions. We also hold film showings for our personnel’s entertainment.

Many suppliers are shifting operations inland. Do you think this is a good strategy?

It is a good strategy in the near future, especially for some large companies. It will, however, be difficult for small and midsize operations as the supply chain in inland provinces is not mature yet. Transportation alone will incur higher outlay and longer lead times.

With rising costs, what do you think is the prospect of China-made products in the months ahead?

Currently, most China-made products cater to OEM/ODM requirements and are low-profit so suppliers need to boost their competitiveness. To achieve this, enterprises need to address expenditure and recruitment challenges by improving manufacturing efficiency, management and work environment.

About the company

Topscom runs a factory in Bao’an, Shenzhen in Guangdong province. It has a 4,500-member workforce. The facility can churn out 30 million SMT points, 30,000 PCB assemblies and 30 plastic injection molds daily, and 200 mold tooling sets and 30,000 finished products monthly.

The maker exports mainly to Europe and Asia. Its annual sales average $300 million.

For more details on Topscom, visit www.globalsources.com/chinapcba.co.

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