All of the companies have leading positions and already have relationships with leading companies which will allow them to participate in a market expected to more than double over the next few years. Below is a summary of my favorite stocks in this sector followed by a brief write-up of each company. Solectron builds products in at least 12 different industry segments, ranging from networking gear, mobile phones, telecommunications equipment, notebook computers and peripherals. Among its customers are Hewlett-Packard and Cisco Systems. It is the first United States-based electronics manufacturing services firm to establish a presence in Japan.
Analysts say Japan is one of the largest untapped markets for contract manufacturers.
The company's customers, who use contract manufacturers like Jabil to save money and improve production times, include Cisco and 3Com. Jabil has manufacturing facilities in Italy, Malaysia, Mexico, the UK, and the United States. Working with Jabil, Cisco can ship its routers in less than two days to any location in the world without ever actually handling the product. The company designs, makes, and distributes printed circuit board assemblies for original equipment manufacturers. Through a number of acquisitions and facilities in Asia, Europe, and North and South America, Flextronics serves major customers including Ericsson, Microsoft, and Philips Electronics.