NEC, Solectron to Collaborate in Total Supply Chain Management of 3G Mobile Terminals


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Tokyo and Milpitas, Calif. — NEC Corp. (NEC) and Solectron Corp. have formed an agreement in principle for Solectron to provide manufacturing and after-sales services for NEC's advanced Internet-enabled handsets.

In an expansion of the relationship between the two companies, Solectron would be the outsourced manufacturer of NEC's Third-Generation (3G) mobile terminal products, or handsets, for markets outside of Japan. NEC, which currently produces these products in Japan, plans to gradually transfer production to Solectron's facility in Suzhou, China, after initial pilot production of each new product in Japan.

Under this agreement, NEC's mobile terminal manufacturing capacity outside of Japan would rise to more than 1 million units per month.

Solectron recently began producing the first product covered by this agreement, an NEC 3G handset for wireless service provider Hutchison 3G. The handset's features include video calling, video and photo messaging, video downloading, games, and wire-free dial-up networking.

In addition, Solectron recently started providing pan-European repair services for NEC 3G products. The two companies said they would negotiate an expansion of their relationship to include mobile terminal customizations.NEC is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. For more information, visit www.nec.com.

Solectron Corp. provides a full range of global manufacturing and supply-chain management services to the world's premier high-tech electronics companies. For more information, visit www.solectron.com.

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