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WIKI ANALYSIS
Molex Incorporated is the manufacturer of electronic components. Its products are used by original equipment manufacturers (OEMs) around the world. Its core business is the manufacture and sale of electronic components. It also provides manufacturing services to integrate specific components into a customer’s product.
MARKETS AND PRODUCTS
The approximate percentage of net revenue by market for fiscal 2007 is summarized below:
| Markets | Percentage of Net Revenue |
| Telecommunications | 26% |
| Data Products | 21% |
| Automotive | 18% |
| Consumer | 18% |
| Industrial | 15% |
| Other | 2% |
Telecommunications
In the telecommunications market, its key strengths include: high speed, optical signal product lines; backplane connector systems; power distribution product; micro-miniature connectors; global coordination; and complementary products such as keyboards and antennas.
For mobile phones, it provides micro-miniature connectors, SIM card sockets, keypads, electromechanical subassemblies and internal antennas and subsystems. An area of particular innovation is high-speed backplanes and cables for infrastructure equipment.
Data Products
In the data market, its key strengths include: high-speed signal product line; storage input/output (I/O) products; standards committee leadership; global coordination; low cost manufacturing; and strong relationships with OEMs, contract manufacturers and original design manufacturers.
It manufactures power, optical and signal connectors and cables for fast end-to-end data transfer, linking disk drives, controllers, servers, switches and storage enclosures.
It holds a strong position with connectors used in servers, the segment of this market that accounts for the largest volume of connector purchases. It also offers a large variety of products for power distribution, signal integrity, processor and memory applications. Its product portfolio includes a wide range of interconnect devices for copiers, printers, scanners and projectors.
Automotive
In the automotive market, its strengths include: new product development expertise; focus on entertainment, safety and convenience features; technical skills; and integrated manufacturing capabilities.
The company’s interconnects are used in air bag, seatbelt and tire pressure monitoring systems and powertrain, window and temperature controls. Today’s cars are mobile communication centers, complete with navigation tools and multimedia entertainment. Its Media Oriented System Transport (MOST) connector system uses plastic optical fiber to transmit audio, video and data at high speeds in devices such as CD and DVD players.
Consumer
In the consumer market, its key strengths include: optical and micro-miniature connector expertise; breadth of high wattage (power) product line; cable and wire application equipment; and low cost manufacturing.
It design and manufacture many of the world’s smallest connectors for home and portable audio, digital still and video cameras, DVD players and recorders, as well as devices that combine multiple functions.
It is a leading connector source and preferred supplier to some of the world’s largest computer game makers. In addition, it provides products for video poker and slot machines.
Industrial
In the industrial market, its key strengths include: optical and micro miniature connector expertise; breadth of our power and signal product lines; distribution partnerships; and global presence.
Its high-performance cables, backplanes, power connectors and integrated products are found in products ranging from electronic weighing stations to industrial microscopes and vision systems. Advances in semiconductor technology require comparable advances in equipment to verify quality, function and performance.
With the acquisition of Woodhead Industries it increased its presence in the electrical and factory automation market in fiscal 2007.
Other
the company provides both connectors and custom integrated systems for diagnostic and therapeutic equipment used in hospitals including x-ray, magnetic resonance imaging (MRI) and dialysis machines. Military electronics is also one of the emerging markets.
COMPETITION
It competes with many companies in each of its product categories. Some of the competitors include Amphenol Corporation, Framatome Connectors International, Hirose Electronic Co., Ltd, Hon Hai Precision Industry Co., Ltd., Japan Aviation Electronics Industry, Ltd., Japan Solderless Terminal Ltd. and Tyco Electronics Ltd. as well as a significant number of smaller competitors.
CUSTOMERS, DEMAND CREATION AND SALES CHANNELS
The company sells its products directly to OEMs, contract manufacturers and distributors. Its key customers include global companies such as Arrow, Cisco, Dell, Ford, General Motors, Hewlett Packard, IBM, Matsushita, Motorola and Nokia. No customer accounted for more than 10 % of net revenues in fiscal 2007, 2006 or 2005.
As many of the customers operate in more than one geographic region of the world and the company have developed a global footprint to service these customers. The net revenue originating outside the U.S. based on shipping point to the customer was approximately 73% in fiscal 2007, 73% in fiscal 2006 and 74% in fiscal 2005.
RESEARCH AND DEVELOPMENT
The company performs a majority of its design and development of connector products in the U.S. and Japan, but it also has additional product development capabilities in various locations, including China, Germany, India, Ireland, Korea and Singapore.
MANUFACTURING
The company’s core manufacturing expertise includes molding, stamping, plating and assembly operations. It also has expertise in printed circuit card, flexible circuit. As the integrated products require labor-intensive assembly, the company has low-cost manufacturing center in China, India, Malaysia, Mexico, Poland, Slovakia and Thailand.
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