Motorola handset component supply chain in Taiwan likely to undergo rearrangement Tweet

The supply chain of handset keypads, cases, panels, PCBs and camera modules for Motorola in Taiwan may come to a rearrangement as Arima Communications is likely to replace Compal Communications as the largest production partner for the US handset vendor, according to industry sources.

Motorola aims to ship 30 million Android-based smartphones as well as 30 million entry-level feature phones in 2010, with plans to outsource the production of all feature phones to ODM makers in Taiwan and China, said the sources, who are familiar with Motorola roadmap.

Motorola has selected 4-5 makers in Taiwan and China as potential partners and may release orders for 10-20 new handsets to those partners, indicated the sources, noting that most new feature phones will be built using MediaTek chipset solutions.

Arima reportedly will receive a windfall of orders from Motorola due to its expertise in the manufacture of MediaTek-based handsets, according to earlier reporters.

Having begun releasing orders to new partners, Motorola has also allowed the new partners to choose their own suppliers for related parts and components, and this policy will affect the supply chain for keypads, PCBs, cases, electronics and audio components, panels and camera modules, the sources noted.

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