News

5 February 2009

 

JDSU partners with contract manufacturer Sanmina-SCI

Optical communications component maker JDSU of Milpitas, CA, USA has signed an agreement for electronics manufacturing services (EMS) provider Sanmina-SCI Corp to manufacture its products.

Sanmina-SCI will acquire certain manufacturing assets, inventories, and employees related to JDSU’s 320,000ft² assembly & test operations in Shenzhen, China (opened in early 2001). The transaction is expected to close by 6 April.

JDSU announced late last October that it aimed to consolidate its number of plants. The firm retains fabs in the San Jose area and in Colorado (formerly VCSEL manufacturer Picolight, acquired in mid-2007).

As part of the agreement, Sanmina-SCI will build on the capabilities of JDSU’s Shenzhen operations to offer telecoms firms access to new product introduction (NPI) and manufacturing services for optical products. Sanmina-SCI says that the transfer of staff and inventory should allow it to produce and deliver orders without any interruption to JDSU and its customers. JDSU will continue to maintain corporate functions and product development in the region.

“The new partnership represents an important part of JDSU’s manufacturing strategy to leverage the skills of world-class EMS partners like Sanmina-SCI for products and services where possible, while retaining key elements internally that provide a unique advantage to JDSU,” says Alan Lowe, president of JDSU’s Communications and Commercial Optical Products business segment. “Working with a leader like Sanmina-SCI provides JDSU with the flexibility to best support our customers and ensure joint success in today’s economic climate,” he adds.

“This collaboration fulfills our long-term strategic goal to expand and solidify our position in this field,” says Sanmina-SCI's president & chief operating officer Hari Pillai. “The combination of our current capabilities and the expertise of the Shenzhen team will give Sanmina-SCI the strongest optical assembly and test resources of any major EMS company,” he claims.

See related item:

CEO and 400 jobs to go as JDSU closes seven R&D centers & three plants

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