SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C.  20549
                                 FORM 10-Q


X  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED NOVEMBER 28, 1997.

__  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES 
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________________ TO 
_________________

COMMISSION FILE NUMBER 1-11098

                           SOLECTRON CORPORATION
           (Exact Name of Registrant as specified in its Charter)


                 Delaware                        94-2447045
      (State or other jurisdiction             (IRS Employer 
    of Incorporation or Organization)       Identification Number)


             777 Gibraltar Drive, Milpitas, California 95035
           (Address of principal executive offices and Zip Code)

Registrant's telephone number, including area code:   (408) 957-8500



Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange 
Act of 1934 during the preceding 12 months (or for such shorter period 
that the registrant was required to file such reports), and (2) has been 
subject to such filing requirements for the past 90 days.

Yes   X        No    


Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of the latest practicable date.

At December 31, 1997, 115,222,388 shares of Common Stock of the 
Registrant were outstanding.


<PAGE>
                         SOLECTRON CORPORATION

INDEX TO FORM 10-Q


PART I.  FINANCIAL INFORMATION


Item 1.  Financial Statements

         Condensed Consolidated Balance Sheets at
         November 30, 1997 and August 31, 1997                    3

         Condensed Consolidated Statements of Income for
         for the three months ended November 30, 1997 
         and 1996                                                 4

         Condensed Consolidated Statements of Cash Flows 
         for the three months ended November 30, 1997 
         and 1996                                               5 - 6

         Notes to Condensed Consolidated Financial
         Statements                                             7 - 9

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                   10 - 21



PART II. OTHER INFORMATION


Item 1.  Legal Proceedings                                        22

Item 2.  Changes in Securities                                    22

Item 3.  Defaults Upon Senior Securities                          22

Item 4.  Submission of Matters to a Vote of Security Holders      22

Item 5.  Other Information                                        22

Item 6.  Exhibits and Reports on Form 8-K                         22

Signature                                                         23





                                    2
<PAGE>
<TABLE>
                SOLECTRON CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                             (In thousands)
<CAPTION>
                                        November 30,        August 31,
                                           1997                1997
                                        -----------        -----------
<S>                                     <C>                <C>
ASSETS 
Current assets:
   Cash, cash equivalents and 
     short-term investments              $  412,892         $  482,902
   Accounts receivable, net                 519,493            418,682
   Inventories                              590,058            494,622
   Prepaid expenses and other
     current assets                          59,209             79,426
                                         ----------         ----------
     Total current assets                 1,581,652          1,475,632 
Net property and equipment                  378,199            326,361
Other assets                                 50,173             50,426
                                         ----------         ----------
     Total assets                        $2,010,024         $1,852,419
                                         ==========         ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Current portion of long-term debt     $      --          $    1,464
   Accounts payable                         513,581            415,896
   Accrued employee compensation             49,087             56,218
   Accrued expenses                          17,133             24,787
   Other current liabilities                 60,529             45,577
                                         ----------         ----------
     Total current liabilities              640,330            543,942
Long-term debt                              386,785            385,850
Other long-term liabilities                   3,510              3,558
                                         ----------         ----------
     Total liabilities                    1,030,625            933,350
                                         ----------         ----------
Stockholders' equity:      
     Common stock                               115                115
     Additional paid-in capital             462,006            451,093
     Retained earnings                      523,500            478,612
     Cumulative translation adjustment       (6,222)           (10,751)
                                         ----------         ----------
     Total stockholders' equity             979,399            919,069
                                         ----------         ----------
     Commitments
Total liabilities and 
 stockholders' equity                    $2,010,024         $1,852,419
                                         ==========         ==========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
                                   3
<PAGE>
<TABLE>
                  SOLECTRON CORPORATION AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                   (In thousands, except per share data)
<CAPTION>
                                      Three Months Ended
                                         November 30,
                                    ----------------------
                                       1997        1996
                                    ----------  ----------
<S>                                 <C>         <C>
Net sales                           $1,136,820  $  807,725
Cost of sales                        1,013,061     721,577
                                    ----------  ----------
     Gross profit                      123,759      86,148

Operating expenses:
   Selling, general
    & administrative                    51,939      32,672
   Research &
    development                          4,382       1,190
   Acquisition costs                       --        4,000
                                    ----------  ----------
     Operating income                   67,438      48,286

Interest income                          6,577       6,213
Interest expense                        (6,513)     (6,811)
                                    ----------  ----------
     Income before 
      income taxes                      67,502      47,688

Income tax expense                      22,614      16,213
                                    ----------  ----------
     Net income                     $   44,888  $   31,475
                                    ==========  ==========
Net income per share:
     Primary                        $     0.38  $     0.29
                                    ==========  ==========
     Fully diluted                  $     0.38  $     0.29
                                    ==========  ==========
Weighted average number 
  of shares:
     Primary                           119,236     109,026
                                    ==========  ==========
     Fully diluted                     126,039     116,601
                                    ==========  ==========

</TABLE>
See accompanying notes to condensed consolidated financial statements.

                                   4

<PAGE>
<TABLE>
                   SOLECTRON CORPORATION AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
<CAPTION>
                                                  Three Months Ended
                                                     November 30,
                                               ------------------------
                                                  1997          1996
                                               ----------    ----------             
<S>                                            <C>           <C>
Cash flows from operating activities:
  Net income                                   $   44,888    $   31,475
  Adjustments to reconcile net income
   to net cash provided by operating 
   activities:
     Depreciation and amortization                 32,597        26,419
     Tax benefit associated with the 
      exercise of stock options                       --          3,792 
     Other                                          5,329         3,033
  Changes in operating assets and 
   liabilities:
     Accounts receivable                          (98,360)      (18,828)
     Inventories                                  (92,287)      (26,515)
     Prepaid expenses and other 
      current assets                               20,979        (5,677)
     Accounts payable                              94,774        54,718
     Accrued expenses and other 
      current liabilities                             (89)        7,613
                                               ----------    ----------
     Net cash provided by operating 
     activities                                     7,831        76,030
                                               ----------    ----------
Cash flows from investing activities:
  Sales and maturities of short-term 
   investments                                    278,592       64,376
  Purchases of short-term investments            (319,709)    (108,696)
  Capital expenditures                            (88,500)     (22,348)
  Other                                              (799)       4,621
                                               ----------   ----------
     Net cash used in investing 
     activities                                  (130,416)     (62,047)
                                               ----------   ----------


                               (continued on next page)
</TABLE>
See accompanying notes to condensed consolidated financial statements.

                                   5

<PAGE>
<TABLE>
                  SOLECTRON CORPORATION AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
                            (In thousands)
<CAPTION>
                                                 Three Months Ended
                                                    November 30,
                                              ------------------------
                                                 1997          1996
                                              ----------    ----------            
<S>                                           <C>           <C>
Cash flows from financing activities:
  Repayments of long-term debt                      (886)         (457)
  Net proceeds from sale of common stock          10,910        11,950
  Other                                              --           (187)
                                              ----------    ----------
     Net cash provided by financing 
     activities                                   10,024        11,306
                                              ----------    ----------
Effect of exchange rate changes on 
 cash and cash equivalents                         1,435         1,004
                                              ----------    ----------
Net increase in cash and 
 cash equivalents                               (111,126)       26,293
   
Cash and cash equivalents at 
 beginning of period                             225,073       228,830
                                              ----------    ----------
Cash and cash equivalents at 
 end of period                                $  113,947    $  255,123
                                              ==========    ==========


SUPPLEMENTAL DISCLOSURES

Cash paid during the period:
   Income taxes                               $   19,393    $    7,737
   Interest                                   $      --     $   12,816
  
Non-cash investing and financing
activities:
   Issuance of common stock for
     business combination                     $      --     $   18,335

</TABLE>
See accompanying notes to condensed consolidated financial statements.

                                   6
<PAGE>
SOLECTRON CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - Basis of Presentation

The accompanying condensed consolidated balance sheets as of November 
30, 1997 (unaudited) and August 31, 1997, the unaudited condensed 
consolidated statements of income for the three-month periods ended 
November 30, 1997 and 1996, and the unaudited condensed consolidated 
statements of cash flows for the three months ended November 30, 1997 
and 1996 have been prepared on substantially the same basis as the 
annual consolidated financial statements.  Management believes the 
financial statements reflect all adjustments, consisting only of normal 
recurring adjustments, necessary for a fair presentation of the 
financial position, operating results and cash flows for the periods 
presented.  The results of operations for the three-month periods ended 
November 30, 1997 are not necessarily indicative of results to be 
expected for the entire year.  These condensed consolidated financial 
statements should be read in conjunction with the consolidated financial 
statements and notes thereto for the year ended August 31, 1997 included 
in the Company's Annual Report to Stockholders.

For clarity of presentation, the Company has indicated its first fiscal 
quarter as ending on November 30, and its fiscal year as ending on 
August 31, whereas in fact, the Company's first quarter of fiscal 1998 
ended on November 28, 1997, its first quarter of fiscal 1997 ended on 
November 29, 1996 and its 1997 fiscal year ended on August 29, 1997.

Certain reclassifications have been made to the fiscal 1997 condensed 
consolidated financial statements to conform to the fiscal 1998 
presentation.

NOTE 2 - Inventories

Inventories consisted of (in thousands):

<TABLE>
<CAPTION>
                                 November 30,        August 31,
                                     1997               1997   
                                 -----------        -----------
          <S>                    <C>                <C.
          Raw materials           $ 427,749         $  365,630
          Work-in-process           162,309            128,992
                                 -----------        -----------
          Total                   $ 590,058         $  494,622
                                 ===========        ===========
</TABLE>

NOTE 3 - Net Income Per Share

Primary net income per share is computed using the weighted average 
number of common shares and dilutive common equivalent shares 
outstanding during the related period.  Common equivalent shares consist 
of stock options and are computed using the treasury stock method.  
Fully diluted net income per share assumes full conversion of the 
Company's outstanding convertible notes.

                                   7
<PAGE>
NOTE 4 - Asset Securitization Arrangement

In September 1997, the Company entered into an asset securitization 
arrangement with a bank under which it may sell up to $120 million of 
eligible accounts receivable. The arrangement is subject to certain 
financial covenants and management representations. No transactions have 
occurred under this arrangement.

NOTE 5 - Commitments

The Company leases various facilities under operating lease agreements.  
These leases expire at various dates through the year 2006.  
Substantially all leases require the Company to pay property taxes, 
insurance, and normal maintenance costs.  All of the Company's leases 
have fixed minimum lease payments except the lease for certain 
facilities in Milpitas, California.  Payments under this lease are 
periodically adjusted based on LIBOR rates.  This lease provides the 
Company with the option at the end of the lease of either acquiring the 
property at its original cost or arranging for the property to be 
acquired. The Company is contingently liable under a first loss clause 
for a decline in the market value of the property of up to $52.1 million 
in the event that the Company does not purchase the property at the end 
of the lease term.  The Company must also maintain compliance with 
financial covenants similar to its credit facilities.  Future minimum 
lease payments related to lease obligations are approximately $17.0 
million, $11.8 million, $9.0 million, $6.5 million and $4.2 million in 
each of the years in the five year period ending August 31, 2002 and an 
aggregate $1.1 million for periods after that date.

NOTE 6 - Recent Accounting Pronouncements

In February 1997, the Financial Accounting Standards Board issued 
Statement of Financial Accounting Standards No. 128, "Earnings per 
Share" (SFAS No. 128).  SFAS No. 128 establishes a different method of 
computing net income per share than is currently required under the 
provisions of Accounting Principles Board Opinion No. 15.  Under SFAS 
No. 128, the Company will be required to present both basic net income 
per share and diluted net income per share.  Basic net income per share 
is expected to be higher than the currently presented primary net income 
per share as the effect of dilutive stock options will not be considered 
in computing basic net income per share.  Diluted net income per share 
is expected to be comparable to the currently presented fully diluted 
net income per share.

Solectron will adopt SFAS No. 128 in its fiscal quarter ending February 
27, 1998 and at that time all historical net income per share data 
presented will be restated to conform to the provisions of SFAS No. 128.




                                   8
<PAGE>
NOTE 7 - Subsequent Event

On December 19, 1997, the Company announced that it had signed a letter 
of intent with NCR Corporation (NCR) under which Solectron will acquire 
NCR's manufacturing assets in three cities for approximately $100 
million. Under the terms of the letter of intent, NCR will outsource the 
manufacturing of its computer and retail products to Solectron for at 
least five years and Solectron will hire approximately 1,200 NCR 
manufacturing and related support employees. The transaction is expected 
to close in the Company's third fiscal quarter of 1998. Completion of 
the transaction is subject to successful negotiation of the definitive 
agreements, approval of the boards of directors of both companies and 
applicable government approvals.





















                                  9

<PAGE>
ITEM 2      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                  CONDITION AND RESULTS OF OPERATIONS


The following Management's Discussion and Analysis of Financial 
Condition and Results of Operations contains forward-looking statements 
which involve risks and uncertainties. Solectron's actual results could 
differ materially from those anticipated in these forward looking 
statements as a result of certain factors, including those factors set 
forth under "Trends and Uncertainties" below.

General

Solectron's net sales are derived from sales to electronics systems 
original equipment manufacturers (OEMs). The majority of Solectron's 
customers compete in the networking, data and voice communications, 
workstation, personal computer and computer peripheral segments of the 
electronics industry. The Company uses advanced manufacturing 
technologies in assembly and manufacturing management of complex printed 
circuit boards and electronics systems. Solectron also provides pre-
manufacturing and post-manufacturing services. A discussion of some of 
the potential fluctuations in operating results is included under 
"Trends and Uncertainties".

On November 26, 1996, Solectron exchanged approximately 6.2 million 
shares of common stock for all of the outstanding stock of Force 
Computers Inc. (Force), and assumed all of the outstanding options of 
Force, after giving effect to the exchange ratio. Force is a designer 
and provider of computer platforms for the embedded market.  This 
transaction was accounted for under the pooling of interests method.  
The results of operations of Force prior to its acquisition were not 
considered material to the Company's consolidated results of operations.  
Accordingly, the Company's historical financial statements have not been 
restated to reflect the financial position and results of operations of 
Force, and pro-forma financial information has not been disclosed.

As of November 30, 1997, excluding the locations of the Force Computers 
and Fine Pitch Technologies subsidiaries, the Company had manufacturing 
operations in fourteen locations, of which six are located in North 
America and eight are overseas. Solectron also has its Asia/Pacific 
headquarters office in Taipei, Taiwan and a sales support office located 
in Japan.  Force Computers and Fine Pitch Technologies are both 
headquartered in San Jose, California.  Force's European headquarters 
and a significant portion of its operations are located in Munich, 
Germany.  In addition to its headquarters locations, Force has sales 
support offices in various locations in the United States and 
internationally. Fine Pitch has operations in California and in 
Massachusetts.

During 1997, the Company established a strategic, global manufacturing 
partnership with Ericsson Telecom AB's Business Area Infocom Systems 
(Ericsson). The Company has established a New Product Introduction 
center in Norrkoping and Stockholm, Sweden, and production from certain 
Ericsson plants worldwide has been or will be transferred to Solectron 
manufacturing sites around the world. In October 1997, Solectron 
acquired certain assets, primarily equipment and inventory, of 
Ericsson's printed circuit board assembly operation located in Brazil. 
In addition, Solectron's subsidiary, Solectron Brasil Ltda., hired 
approximately 370 persons formerly employed by Ericsson Telecomunicacoes 
S.A. in Brazil.

                                   10
<PAGE>
On December 19, 1997, the Company announced that it had signed a letter 
of intent with NCR Corporation (NCR) under which Solectron will acquire 
NCR's manufacturing assets in three cities for approximately $100 
million. Under the terms of the letter of intent, NCR will outsource the 
manufacturing of its computer and retail products to Solectron for at 
least five years and Solectron will hire approximately 1,200 NCR 
manufacturing and related support employees. The transaction is expected 
to close in the Company's third fiscal quarter of 1998. Completion of 
the transaction is subject to successful negotiation of the definitive 
agreements, approval of the boards of directors of both companies and 
applicable government approvals.

Results of Operations

The electronics industry is subject to rapid technological change, 
product obsolescence and price competition. These and other factors 
affecting the electronics industry, or any of Solectron's major 
customers in particular, could have an adverse material effect on 
Solectron's results of operations. See "Trends and Uncertainties -- 
Potential Fluctuations in Operating Results" and "Competition" for 
further discussion of potential fluctuations in operating results.

The following table sets forth, for the periods indicated, certain items 
in the Consolidated Statements of Income as a percentage of net sales. 
The financial information and the discussion below should be read in 
conjunction with the Condensed Consolidated Financial Statements and 
Notes thereto.
<TABLE>
<CAPTION>
                                         Three Months Ended
                                            November 30,
                                         ------------------
                                           1997       1996
                                          -----      -----
<S>                                       <C>        <C>
Net sales                                 100.0%     100.0%
Cost of sales                              89.1       89.3
                                          -----      -----
   Gross profit                            10.9       10.7
Operating expenses:
  Selling, general and administrative       4.6        4.1
  Research and development                  0.4        0.1
  Acquisition costs                          --        0.5
                                          -----      -----
   Operating income                         5.9        6.0
Net interest income (expense)                --       (0.1)
                                          -----      -----
   Income before income taxes               5.9        5.9
Income taxes                                2.0        2.0
                                          -----      -----
Net income                                  3.9%       3.9%
                                          =====      =====


                                   11
<PAGE>
Net Sales

Net sales for the first quarter of fiscal 1998 grew to $1.1 billion, an 
increase of 40.7% over the same period in fiscal 1997. The sales growth 
is attributable to significant increases in sales volume from both 
existing and new customers in the Americas, the acquisition of Force 
Computers, Inc. in November 1996 and higher European and Asian sales.

Sales in the Americas reflected increases in sales at all locations to 
existing and new customers in the fiscal 1998 period compared to the 
fiscal 1997 period. The sales increase at the Milpitas, California site 
was partially offset by deliberate management actions initiated in the 
fourth quarter of fiscal 1997 to achieve improved global load balancing 
and specific product program transitioning. First quarter sales in the 
Company's European and Asian operations increased in fiscal 1998 over 
the same period of fiscal 1997 primarily as a result of core business 
growth and new accounts. The global load balancing efforts noted above 
made only a modest contribution to the sales growth in Europe and Asia 
due to various customer-specific inventory and program management 
issues. Although the Company does not currently anticipate any future 
decline in sales, to lessen the potential impact of any possible future 
declines to customers within any particular region or market segment, 
the Company is committed to seeking diversification of its customer base 
among many countries, market segments and product lines within market 
segments.

Hewlett-Packard Company (HP) was Solectron's largest customer in the 
first quarters of both fiscal 1998 and 1997 and accounted for 15.5% and 
12.5%, respectively, of consolidated net sales in those periods. In 
addition, Sun Microsystems, Inc. accounted for 10.0% of net sales in the 
first quarter of fiscal 1998 and Bay Networks, Inc. accounted for 11.2% 
of net sales in the first quarter of fiscal 1997. No other customers 
accounted for more than 10% of net sales during any of the periods 
presented.

Solectron's top ten customers accounted for 67.3% and 66.1% of 
consolidated net sales in the first three months of fiscal 1998 and 
1997, respectively. Solectron is still dependent upon continued revenues 
from HP and the rest of its top ten customers and there can be no 
guarantee that these or any other customers will not increase or 
decrease as a percentage of consolidated net sales either individually 
or as a group. Consequently, any material decrease in sales to these or 
other customers could have an adverse material effect on Solectron's 
results of operations.

In the first quarter of fiscal 1998, international locations contributed 
33.6% of consolidated net sales compared to 23.3% in the same period of 
fiscal 1997. In addition to the sales growth factors for Europe and Asia 
noted above, the Company's international sales also benefited from the 
addition during the first quarter of fiscal 1998 of the sites in Mexico 
and Brazil.

As a result of Solectron's international sales and facilities, 
Solectron's operations are subject to risks of doing business abroad. 
While to date these dynamics have not had an adverse material effect on 
Solectron's results of operations, there can be no assurance that there 
will not be such an impact in the future. See "Trends and Uncertainties 
-- International Operations" for a further discussion of potential 
fluctuations in operating results associated with the risks of doing 
business abroad.

                                   12
<PAGE>
Solectron's operations in Milpitas, California contributed a substantial 
portion of Solectron's net sales and operating income during the first 
quarters of fiscal 1998 and fiscal 1997. In recent quarters, management 
has undertaken deliberate actions to achieve improved global load 
balancing by transferring certain projects from the Milpitas site to 
other sites worldwide. However, the performance of the Milpitas 
operation is expected to continue as a significant factor in the overall 
financial performance of Solectron. Any adverse material change to the 
customer base, product mix, efficiency, or other attributes of this site 
could have an adverse material effect on Solectron's consolidated 
results of operations.

Solectron believes that its ability to continue to achieve growth will 
depend upon growth in sales to existing customers for their current and 
future product generations, successful marketing to new customers and 
future geographic expansion. Customer contracts can be canceled and 
volume levels can be changed or delayed. The timely replacement of 
delayed, canceled or reduced orders with new business cannot be assured. 
In addition, there can be no assurance that any of Solectron's current 
customers will continue to utilize Solectron's services. Because of 
these factors, there can be no assurance that Solectron's historical 
revenue growth rate will continue. See "Trends and Uncertainties" for a 
discussion of certain factors affecting the management of growth, 
geographic expansion and potential fluctuations in sales and results of 
operations.

Gross Profit

The gross margin percentage improved to 10.9% for the fiscal 1998 period 
from 10.7% for the first quarter of fiscal 1997. The first quarter of 
fiscal 1998 reflects a full quarter of Force's contribution while the 
first quarter of fiscal 1997 includes Force only from the date of its 
acquisition, November 26, 1996. Gross profit margins on Force's products 
are significantly higher than those of the rest of the Company. The 
positive effect of Force's gross profit margins was partially offset by 
start-up costs associated with the Company's operations in China, 
Brazil, Mexico and Massachusetts, as well as a number of new programs 
that were initiated with both new and existing customers in the first 
quarter of fiscal 1998, which negatively affected gross margin 
percentages during their start-up phases. In addition, there was a 
somewhat seasonal shift in product mix toward the lower margin personal 
computer products. After the calendar year end, the personal computer 
industry typically reassesses demand based on inventory levels, and the 
Company expects that its product mix may shift away from personal 
computers to other industry segments in the second quarter.

For the foreseeable future, Solectron's gross margin is expected to 
depend primarily on product mix, production efficiencies, utilization of 
manufacturing capacity, start-up and integration costs of new and 
acquired businesses, the percentage of sales derived from turnkey 
manufacturing and pricing within the electronics industry. Over time, 
gross margins at the individual sites and for the Company as a whole may 
continue to fluctuate. Consignment projects typically have higher gross 
margin percentages than turnkey projects. Increases in turnkey business, 
additional costs associated with new projects and price erosion within 
the electronics industry could adversely affect the Company's gross 
margin.  Additionally, changes in product mix could cause the Company's 
gross margin to fluctuate. Also, while the availability of raw materials 
appears adequate to meet the Company's current revenue projections for 

                                   13
<PAGE>
the foreseeable future, component availability is still subject to lead 
time and other constraints which could possibly limit the Company's 
revenue growth. Because of these factors and others discussed under 
"Trends and Uncertainties" below, there can be no assurance that the 
Company's gross margin will not fluctuate or decrease in future periods.

Selling, General and Administrative Expenses

In absolute dollars, selling, general and administrative (SG&A) expenses 
increased 59.0% in the first quarter of fiscal 1998 over the same period 
of fiscal 1997. Approximately one-third of the increase in fiscal 1998 
is a result of the inclusion of Force and the new sites in Mexico, 
Brazil and Sweden. The remainder of the increase in fiscal 1998 over 
fiscal 1997 is due primarily to investment in infrastructure such as 
personnel and related departmental expenses at all manufacturing 
locations as well as continuing investment in information systems to 
support the increased size and complexity of the Company's business. As 
a percentage of net sales, SG&A expenses were 4.6% and 4.1% in the 
fiscal 1998 and fiscal 1997 periods, respectively. The most significant 
reasons for the fiscal 1998 increase in SG&A expenses as a percentage of 
net sales are the inclusion of Force, which has a more sales-intensive 
operating structure, the costs associated with investments in starting 
up new sites and investments in the Company's information systems.  The 
Company anticipates SG&A expenses will continue to increase in terms of 
absolute dollars in the future, and may possibly increase as a 
percentage of revenue, as the Company continues to build the 
infrastructure necessary to support its current and prospective 
business.

Research and Development Expenses

With the exception of its Force Computers operation, the Company's 
research and development (R&D) activities have been focused primarily on 
the development of prototype and engineering design capabilities, fine 
pitch interconnecting technologies (which include ball-grid array, tape-
automated bonding, multichip modules, chip-on-flex, chip-on-board and 
flip chip), high reliability environmental stress test technology and 
the implementation of environmentally-friendly assembly processes, such 
as VOC-free and no-clean.  Force's R&D efforts are concentrated on new 
product development and improvement of product designs through 
improvements in functionality and support of next generation micro-
processors.  Research and development expenses, in absolute dollars and 
as a percentage of net sales, respectively, were $4.4 million and 0.4% 
in the first quarter of fiscal 1998 and $1.2 million and 0.1% in the 
fiscal 1997 period. The increase in R&D expenses in fiscal 1998 compared 
to fiscal 1997 is due to the acquisition of Force in November 1996. The 
Company expects that R&D expenses will increase in absolute dollars in 
the future and may increase as a percentage of net sales as Force 
continues to invest in its R&D efforts and additional R&D projects are 
undertaken at certain of the Company's Asian sites.

Acquisition Costs

A one time charge for acquisition costs of approximately $4.0 million 
was incurred in fiscal 1997 as a result of the acquisition of Force 
Computers during the quarter ended November 30, 1996.  

                                   14
<PAGE>
Net Interest Income (Expense)

Net interest income was $0.1 million for the first three months of  
fiscal 1998 compared to net interest expense of $0.6 million in the same 
period of fiscal 1997. Interest expense on the Company's long-term debt 
is approximately $6.2 million per quarter and, in the fiscal 1998 
quarter, has been offset by interest earned on undeployed cash and 
investments. Solectron expects to utilize more of the undeployed cash 
during fiscal 1998 in order to fund anticipated future growth. See 
"Trends and Uncertainties -- Management of Growth," and "Potential 
Fluctuations in Operating Results."

Income Taxes

Income taxes increased to $22.6 million in the first quarter of fiscal 
1998 from $16.2 million in the fiscal 1997 period primarily due to 
increased income before income taxes. Solectron's effective income tax 
rate decreased slightly to 33.5% in the fiscal 1998 period from 34% in 
the first quarter of fiscal 1997.

In general, the effective income tax rate is largely a function of the 
balance between income from domestic and international operations. 
Solectron's international operations, taken as a whole, have been taxed 
at a lower rate than in the United States, primarily due to the tax 
holiday granted to the Company's Penang, Malaysia site. The Malaysian 
tax holiday is effective through January 31, 2002, subject to certain 
conditions. The Company has also been granted various tax holidays in 
China, which are effective for various terms and are subject to certain 
conditions.


Liquidity and Capital Resources

Working capital was $941 million at November 30, 1997 compared to $932 
million at the end of fiscal 1997. A major component of working capital 
at November 30, 1997 continues to be undeployed cash from the proceeds 
of the two debt offerings during fiscal 1996. As Solectron continues to 
grow, it is expected that the Company will require greater amounts of 
working capital to support its operations. The Company believes that its 
current level of working capital together with cash generated from 
operations and the Company's available credit facilities will provide 
adequate working capital for the foreseeable future.

Inventory levels fluctuate directly with the volume of the Company's 
manufacturing.  Changes or significant fluctuations in product market 
demands can cause fluctuations in inventory levels which may result in 
changes in levels of inventory turns and liquidity.  Historically, the 
Company has been able to manage its inventory levels with regard to 
these fluctuations.  However, should material fluctuations occur in 
product demand, the Company could experience slower turns and reduced 
liquidity. 

In the first quarter of fiscal 1998, the Company invested approximately 
$89 million in capital expenditures. A large portion of these 
expenditures related to the purchase of new equipment, primarily surface 
mount assembly and test equipment, to meet current and expected 
production levels, as well as to replace or upgrade older equipment 
which was retired or sold. Significant expenditures were also made for 
the acquisition of land and buildings for the Company's new 
manufacturing sites, principally in China, Mexico and Brazil. The

                                   15
<PAGE>
Company expects total capital expenditures in fiscal 1998 to be in the 
range of $160 million to $200 million.

In addition to working capital as of November 30, 1997, which includes 
cash and cash equivalents of $114 million and short-term investments of 
$299 million, the Company has available a $100 million unsecured 
multicurrency revolving credit facility and a $120 million asset 
securitization arrangement. Both of these facilities are subject to 
financial covenants. The Company also has approximately $65.8 million in 
available foreign credit facilities.


Trends and Uncertainties

Customer Concentration; Dependence on the Electronics Industry

In the first quarter of fiscal 1998 and for the full years of fiscal 
1997, 1996 and 1995, the Company's ten largest customers accounted for 
at least 64% of consolidated net sales.  The Company is dependent upon 
continued revenues from its top ten customers.  Any material delay, 
cancellation or reduction of orders from these or other significant 
customers could have an adverse material effect on the Company's results 
of operations. During the first quarter of fiscal 1998, HP accounted for 
15.5% of net sales compared to 12.5% during the same period of fiscal 
1997.  There can be no assurance that the Company will continue to do 
business with HP or any other customer.

The percentage of the Company's sales to its major customers may 
fluctuate from period to period.  Significant reductions in sales to any 
of these customers would have an adverse material effect on the 
Company's results of operations.  The Company has no firm long-term 
volume purchase commitments from its customers, and over the past few 
years has experienced reduced lead-times in customer orders. In 
addition, customer contracts can be canceled and volume levels can be 
changed or delayed.  The timely replacement of canceled, delayed or 
reduced contracts with new business cannot be assured.  These risks are 
increased because a majority of the Company's sales are to customers in 
the electronics industry, which is subject to rapid technological change 
and product obsolescence.  The factors affecting the electronics 
industry in general, or any of the Company's major customers in 
particular, could have an adverse material effect on the Company's 
results of operations.

There can be no assurance that sales to customers within any particular 
market segment will not experience decreases which could have an adverse 
effect on the Company's sales.

Management of Growth; Geographic Expansion

The Company has experienced substantial growth over the last five fiscal 
years, with net sales increasing from $836 million in fiscal 1993 to 
$3.7 billion in fiscal year 1997.  In recent years, the Company has 
acquired or established facilities in many locations. In the first 
quarter of fiscal 1998, the Company announced the opening of its 
Asia/Pacific headquarters office in Taipei, Taiwan; began operations in 
Guadalajara, Mexico; and, as further discussed in "Partnership with 
Ericsson and Related Transactions," established a manufacturing facility 
near Sao Paulo, Brazil, and opened a New Product Introduction center in 
Sweden. In addition, in December 1997, the Company announced its 
intention to acquire certain manufacturing facilities and employees from 

                                  16
<PAGE>
NCR. (See "Pending Acquisition of NCR Operations.") During fiscal 1997, 
the Company announced the establishment of new manufacturing facilities 
in Suzhou, China; began operations at its manufacturing facility in 
Westborough, Massachusetts; and, in November 1996, acquired Force 
Computers Inc., which has operations in California and Germany. The 
Company continually evaluates growth and acquisition opportunities and 
may pursue additional opportunities over time.  There can be no 
assurance that the Company's historical revenue growth will continue or 
that the Company will successfully manage the integration of Force 
Computers, the facilities in China and Mexico, the partnership with and 
acquisitions from Ericsson, the proposed acquisition from NCR or any 
other business it may acquire in the future.  As the Company manages its 
existing operations and expands geographically, it may experience 
certain inefficiencies as it integrates new operations and manages 
geographically dispersed operations.  In addition, the Company's results 
of operations could be adversely affected if its new facilities do not 
achieve growth sufficient to offset increased expenditures associated 
with geographic expansion. The Company's expenses and working capital 
requirements will continue to increase as the new facilities become 
fully operational and the transactions with Ericsson and NCR are 
completed.  Should the Company increase its expenditures in anticipation 
of a future level of sales which does not materialize, its profitability 
would be adversely affected.  On occasion, customers may require rapid 
increases in production which can place an excessive burden on the 
Company's resources.  

Acquisition of Force Computers Inc. 

The acquisition of Force Computers Inc. has created a number of 
challenges, including managing the integration of the operations, 
retaining key employees at Force Computers and managing an 
increasingly larger and more geographically disparate business.  
In addition, Solectron has no significant prior experience in 
managing and operating a computer platform design business.  There 
can be no assurance the Company will successfully manage this 
business or obtain the anticipated business synergy.  In the event 
that Solectron is unsuccessful in managing and integrating the 
Force Computers business, the acquisition could require 
significant additional management attention.  If the Company is 
unsuccessful in integrating and managing the Force Computers 
business, Solectron's results of operations could be materially 
adversely affected.  

Partnership with Ericsson and Related Transactions

During 1997, the Company established a strategic, global manufacturing 
partnership with Ericsson Telecom AB's Business Area Infocom Systems 
(Ericsson). The Company has established a New Product Introduction 
center in Norrkoping and Stockholm, Sweden, and production from certain 
Ericsson plants worldwide has been or will be transferred to Solectron 
manufacturing sites around the world. In October 1997, Solectron 
acquired certain assets, primarily equipment and inventory, of 
Ericsson's printed circuit board assembly operation located in Brazil. 
In addition, Solectron's subsidiary, Solectron Brasil Ltda., hired 
approximately 370 persons formerly employed by Ericsson Telecomunicacoes 
S.A. in Brazil. Under the terms of the agreement, Ericsson will contract 
for Solectron's services from Solectron Brasil Ltda. through September 
1999. Thereafter, Solectron will bear the risk of filling the 
manufacturing capacity at the site with renewed business from Ericsson 
or new business from other customers.

                                   17
<PAGE>
The transactions with Ericsson entail a number of risks, including 
successfully managing the integration of the operations, retention of 
key employees, integrating purchasing operations and information 
systems, managing an increasingly larger and more geographically 
disparate business and renewing the Ericsson business or replacing it 
with new business after expiration of the Ericsson commitment.  In 
addition, the completion of the transactions with Ericsson will increase 
Solectron's expenses and working capital requirements and there is no 
assurance that Solectron will achieve sufficient revenue to offset the 
increased expenses.  There can be no assurance the remaining 
transactions contemplated by the memorandum of understanding will close 
completely or that Solectron will successfully manage the risks of these 
transactions.

Pending Acquisition of NCR Operations

On December 19, 1997, the Company announced that it had signed a letter 
of intent with NCR under which Solectron will acquire NCR's 
manufacturing assets in three cities, two in the United States and one 
in Ireland, for approximately $100 million. Solectron will hire 
approximately 1,200 NCR manufacturing and related support employees 
currently employed at these locations. Under the terms of the letter of 
intent, NCR will outsource the manufacturing of its computer and retail 
products to Solectron for at least five years. Thereafter, Solectron 
will bear the risk of filling the manufacturing capacity at the site 
with renewed business from NCR or new business from other customers. The 
transaction is expected to close in the Company's third fiscal quarter 
of 1998. Completion of the transaction is subject to successful 
negotiation of the definitive agreements, approval of the boards of 
directors of both companies and applicable government approvals.

The transaction with NCR entails a number of risks, including 
successfully managing the integration of the operations, retention of 
key employees, integrating purchasing operations and information 
systems, managing an increasingly larger and more geographically 
disparate business and renewing the NCR business or replacing it with 
new business after expiration of the NCR commitment.  In addition, the 
completion of the transactions with NCR will increase Solectron's 
expenses and working capital requirements and there is no assurance that 
Solectron will achieve sufficient revenue to offset the increased 
expenses.  There can be no assurance the transaction contemplated by the 
letter of intent will close completely or that Solectron will 
successfully manage the risks of this transaction.

International Operations

As a result of its international sales and facilities, the Company's 
operations are subject to risks of doing business abroad, including but 
not limited to, fluctuations in the value of currency, export duties, 
changes to import and export regulations (including quotas), possible 
restrictions on the transfer of funds, employee turnover, labor unrest, 
longer payment cycles, greater difficulty in collecting accounts 
receivable, the burdens and costs of compliance with a variety of 
foreign laws and, in certain parts of the world, political instability. 
While to date these factors have not had an adverse material impact on 
the Company's results of operations, there can be no assurance that 
there will not be such an impact in the future.

                                   18
<PAGE>
Southeast Asia is currently experiencing currency, economic and 
political instability. To date, the Company's operations have not 
experienced any adverse effects from this instability. However, to the 
extent the Company's worldwide customers sell the products manufactured 
by Solectron into the Southeast Asia market, the customer's sales may be 
adversely affected, which could decrease demand for the Company's 
manufacturing services. The Company cannot predict whether such a 
decrease in demand will materialize and if it does, whether it will have 
an adverse material effect on the Company's results of operations.

The Company has been granted a tax holiday for its Penang, Malaysia site 
which is effective through January 31, 2002, subject to certain 
conditions.  The Company has also been granted various tax holidays in 
China.  These tax holidays are effective for various terms and are 
subject to certain conditions.  There is no assurance that any future 
tax holidays that the Company may seek will be granted.  If additional 
tax holidays are not granted in the future, the Company's effective 
income tax rate would likely increase.

Availability of Components

A substantial portion of the Company's net sales are derived from 
turnkey manufacturing in which the Company provides both materials 
procurement and assembly.  In turnkey manufacturing, the Company 
potentially bears the risk of component price increases, which could 
adversely affect the Company's gross profit margins.  At various times 
there have been shortages of components in the electronics industry.  If 
significant shortages of components should occur, the Company may be 
forced to delay manufacturing and shipments, which could have an adverse 
material effect on the Company's results of operations.

Potential Fluctuations in Operating Results

The Company's operating results are affected by a number of factors, 
including the mix of turnkey and consignment projects, capacity 
utilization, price competition, the degree of automation that can be 
used in the assembly process, the efficiencies that can be achieved by 
the Company in managing inventories and fixed assets, the timing of 
orders from major customers, fluctuations in demand for customer 
products, the timing of expenditures in anticipation of increased sales, 
customer product delivery requirements and increased costs and shortages 
of components or labor. Turnkey manufacturing currently represents a 
substantial portion of Solectron's sales. Turnkey projects, in which 
Solectron procures some or all of the components necessary for 
production, typically generate higher net sales and higher gross profits 
with lower gross profit percentages than consignment projects due to the 
inclusion in Solectron's operating results of sales and costs associated 
with the purchase and sale of components. Solectron assembles products 
with varying degrees of material content, which may cause Solectron's 
gross margin to fluctuate. In addition, the degree of startup costs and 
inefficiencies associated with new sites and new customer projects may 
affect Solectron's gross margin. All of these factors can cause 
fluctuations in the Company's operating results.

Competition

The electronics assembly and manufacturing industry is comprised of a 
large number of companies, several of which have achieved substantial 
market share.  The Company also faces competition from current and 
prospective customers which evaluate Solectron's capabilities against 

                                   19
<PAGE>
the merits of manufacturing products internally.  Solectron competes 
with different companies depending on the type of service or geographic 
area.  Certain of the Company's competitors may have greater 
manufacturing, financial, research and development and marketing 
resources than the Company.  The Company believes that the primary basis 
of competition in its targeted markets is manufacturing technology, 
quality, responsiveness, the provision of value-added services and 
price.  To be competitive, the Company must provide technologically 
advanced manufacturing services, high product quality levels, flexible 
delivery schedules and reliable delivery of finished products on a 
timely and price competitive basis.  The Company currently may be at a 
competitive disadvantage as to price when compared to manufacturers with 
lower cost structures, particularly with respect to manufacturers with 
established facilities where labor costs are lower.

Intellectual Property Protection

The Company's ability to compete may be affected by its ability to 
protect its proprietary information.  The Company holds a limited number 
of U.S. patents related to the process and equipment used in its surface 
mount technology. In addition, the Company's subsidiary, Force 
Computers, holds a number of patents related to VME technology. The 
Company believes these patents are valuable.  However, there can be no 
assurance that these patents will provide meaningful protection for the 
Company's manufacturing process and equipment innovations or Force's 
technology.

There can be no assurance that third parties will not assert 
infringement claims against the Company or its customers in the future.  
In the event a third party does assert an infringement claim, the 
Company may be required to expend significant resources to develop a 
non-infringing manufacturing process or technology or to obtain licenses 
to the manufacturing process or technology which is the subject of 
litigation.  There can be no assurance that the Company would be 
successful in such development or that any such licenses would be 
available on commercially acceptable terms, if at all. In addition, such 
litigation could be lengthy and costly and could have an adverse 
material effect on the Company's financial condition regardless of the 
outcome of such litigation.

Environmental Compliance

The Company is subject to a variety of environmental regulations 
relating to the use, storage, discharge and disposal of hazardous 
chemicals used during its manufacturing process.  Any failure by the 
Company to comply with present and future regulations could subject it 
to future liabilities or the suspension of production.  In addition, 
such regulations could restrict the Company's ability to expand its 
facilities or could require the Company to acquire costly equipment or 
to incur other significant expenses to comply with environmental 
regulations.

                               20
<PAGE>
Dependence on Key Personnel and Skilled Employees

The Company's continued success depends to a large extent upon the 
efforts and abilities of key managerial and technical employees.  The 
loss of services of certain key personnel could have an adverse material 
effect on the Company.  The Company's business also depends upon its 
ability to continue to attract and retain senior managers and skilled 
employees.  Failure to do so could adversely affect the Company's 
operations.

Possible Volatility of Market Price of Common Stock

The trading price of the common stock is subject to significant 
fluctuations in response to variations in quarterly operating results, 
general conditions in the electronics industry and other factors.  In 
addition, the stock market is subject to price and volume fluctuations 
which affect the market price for many high technology companies in 
particular, and which often are unrelated to operating performance.



























                                  21
<PAGE>
SOLECTRON CORPORATION AND SUBSIDIARIES



Part II.       OTHER INFORMATION

      Item 1:  Legal Proceedings

               None

      Item 2:  Changes in Securities

               None

      Item 3:  Defaults upon Senior Securities

               None

      Item 4:  Submission of Matters to a Vote of Security Holders

               None

      Item 5:  Other Information

               None

      Item 6:  Exhibits and Reports on Form 8-K

               (a)  Exhibits

               11.1  Statement re:  Computation of Net Income per
               Share

               27    Financial Data Schedule

               (b)  Reports on Form 8-K

               None








                                   22

<PAGE>
SOLECTRON CORPORATION



SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.




                                     SOLECTRON CORPORATION
                                    (Registrant)





Date: January 9, 1998             By: /s/ Susan Wang
                                     ______________________
                                     Susan S. Wang
                                     Senior Vice President, Chief
                                     Financial Officer and Secretary
                                    (Principal Financial and 
                                     Accounting Officer)





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