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(At this level, FIH would be a top-six EMS provider in its own right.) Hon Hai’s bottom line nearly kept pace with revenue growth, as first-half earnings (adjusted to exclude profits of minority interests) increased 35.9 % in US dollars (39.3% in NT dollars).

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Although the nine largest US-traded EMS providers did not light up the sky with their combined growth in the first half of 2006 (see Aug., p.

1-2), rolled up results for a larger group of publicly held providers, comprised of both EMS companies and ODMs, point to an outsourcing trend that remains robust.

It is somewhat ironic that the outsourcing business, once defined by the US-traded EMS companies, now finds them behind these large ODMs in terms of revenue (Table 1).

Still, the EMS industry taken as a whole outsells the ODM side by a considerable margin.

Wong’s took top honors for the greatest improvement in earnings.

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