Electronic Contract Manufacturing

Electronic Contract Manufacturing

Electronic contract manufacturing is the process in which a contracted manufacturer produces an electronic product for another company. Although the contract manufacturers physically manufacture products for the other company, the second company's name appears on the electronic product when it is sold. In this kind of transaction, the second company is referred to as the OEM, or original equipment manufacturer.

Knowing that its electronic product is being made by a competent manufacturer, the OEM is freed from the responsibilities of manufacturing and is instead able to concentrate on other aspects. Electronic products, due to their complexity, are often contracted for manufacture. In many cases, OEMs choose to have their electronics made by another company who specializes in the product they need. By purchasing the product through a contract manufacturer, the OEM saves money on engineering, infrastructure, and assembly costs.