In 2019, Chinese mobile ODM manufacturers were busy expanding their overseas markets, which became a crucial year for them to do so.
This year, Chinese terminal ODM manufacturer Huaqin Technology completed its layout in two overseas bases in India and Vietnam. In the same year, Wentai Technology's manufacturing centers in India and Indonesia were put into operation, and a year later, Wentai Technology's Anshi Semiconductor Malaysia packaging plant expanded production.
Longqi Technology has also established manufacturing centers in India and Vietnam; From 2019 to 2020, Guanghong Technology also achieved overseas layout, during which it established Guanghong in India, Guanghong in Vietnam, and Guanghong in Bangladesh.
Lingzhi Zhizao and Tianlong Mobile, both ODM manufacturers of mobile terminals, also have layouts in Vietnam. The overlapping of a series of overseas markets with a well matched timeline has something to do with China's rising labor costs, local international trade frictions, responding to global supply chain demand and other factors.
However, after Chinese ODM manufacturers Huaqin, Longqi, Guanghong Technology, Lingzhi Zhizao, and Tianlong Mobile gathered in Vietnam, only Wentai Technology was nowhere to be seen.
Wentai is absent
Recently, according to data released by the Vietnamese General Bureau of Statistics, Vietnam's total exports of mobile phones and components reached $22.4 billion in the first five months of this year, equivalent to RMB 162.7 billion, marking Vietnam's official overtaking of India and becoming the second largest mobile phone exporting country after China.
Of course, Vietnam's comeback over India owes much to Samsung.
According to statistics, Samsung's output value in Vietnam accounts for a quarter of Vietnam's GDP, and another quarter of Vietnam's total export value is also contributed by Samsung.
In 2019, Samsung shut down its last factory in China, marking the complete transfer of its OEM business to Vietnam. Samsung (Vietnam) has stated that as of July 2023, Samsung has invested $20 billion in Vietnam and will invest an additional $1 billion annually in the future. In addition, Samsung requires component manufacturers to follow its footsteps and invest in building factories in Vietnam.
On the other hand, in recent years, benefiting from the diversification of global supply chain risks by electronics giants and the establishment of production bases in Vietnam, the export of communication products such as mobile phones has continued to grow.
Affected by the above factors, Chinese ODM gathered in Vietnam. As of now, Chinese terminal ODM manufacturers Huaqin Technology, Longqi Technology, Guanghong Technology, Lingzhi Zhizao, and Tianlong Mobile have all established intelligent manufacturing bases in Vietnam.
However, there is no Wentai Technology.
It should be noted that although Wentai Technology made a net profit of about 140 million yuan in the first half of this year, its product integration business suffered a net loss of 850 million yuan in the first half of the year, and the gross profit margin of the product was only 2.49%.
This also means that Wentai Technology's product integration business suffered significant losses. After observation, it was found that Wentai Technology's ability to make money in the first half of this year relied entirely on its semiconductor business.
What is the overseas income of ODM manufacturers?
The changing international trade situation has brought many uncertain factors to the entire electronics industry. In this context, domestic manufacturers are actively expanding into overseas markets, accelerating their layout in Southeast Asia and other regions, while avoiding the barriers brought by trade protectionism and seeking new opportunities.
Nowadays, the overseas income of terminal ODM manufacturers who have entered the global stage has also been disclosed.After CMA investigation, it was found that in the first half of this year, the overseas income of Wentai Technology, Huaqin Technology, and Lingyi Zhizao was higher than that of domestic enterprises.
Among them, Wentai Technology's overseas income accounts for 55.23%, and its domestic income accounts for 44.77%.
During the same period, the overseas revenues of Huaqin Technology, Longqi Technology, and Lingyi Zhizao were 20.525 billion yuan, 7.163 billion yuan, and 13.663 billion yuan, respectively. Among them, Longqi Technology's overseas revenue has grown significantly, with its overseas revenue increasing from 1.36 billion yuan in the first half of 2023 to 7.163 billion yuan.
Lingzhi Intelligence Manufacturing's overseas revenue in the first half of 2024 also increased from 10.881 billion yuan in the same period last year to 13.663 billion yuan. As Guanghong Technology has not yet disclosed relevant data, the overseas revenue situation of Guanghong Technology this year is still unknown as of the time of writing.
In recent years, there have been signs of the consumer electronics industry chain shifting to Southeast Asia, South Asia, and other regions. For example, Apple has increased its production line layout in India and Vietnam since 2022 to increase supply chain resilience. Therefore, for domestic terminal ODM manufacturers, if their main customers increase production and supply demand outside of China in the future, and fail to effectively establish global delivery capabilities that match customer needs, it will have a certain adverse impact on performance.
ODM Manufacturer Global Layout Map
Mechanical environmental testing