Comtech Group, Inc. Announces New Supply Relationship with Vishay Intertechnology, Inc.
biz.yahoo.com
Tuesday February 21, 11:06 am ET
Agreement to Facilitate Sales within the Rapidly Growing Automobile Electronic Component Market in China
SHENZHEN, China, Feb. 21 /PRNewswire-FirstCall/ -- Comtech Group, Inc. (Nasdaq: COGO), a leading provider of customized module design and subsystem solutions for technology product manufacturing companies based in China, today announced it has entered into a new relationship with Vishay Intertechnology, Inc. (NYSE: VSH), a global manufacturer of components, to provide a combined electronic component solution addressing the rapidly growing automobile electronics industry in China.
As part of the agreement, Vishay will supply the key technology components with Comtech providing the customized design work to produce a complete module design offering for Chinese Original Equipment Manufacturers (OEMs) servicing the automobile electronics industry. This new product will allow OEMs access to industry leading technology with a reduced time to market. According to CCID, the market size for automotive electronic component products sold in China was roughly $6 billion (USD) in 2005, growing at a projected 50 percent rate in 2006 to $9 billion (USD). Currently, the majority of industry sales are generated domestically from the burgeoning middle class Chinese consumer market but expectations are for China to become a globally recognized supplier of automobile electronic components worldwide. With growth opportunities both domestically and internationally, many experts believe the industry can continue to sustain its existing growth trajectory.
Jeffrey Kang, Chairman and Chief Executive Officer of Comtech Group, commented, "We are pleased to team up with a recognized technology leader like Vishay to address this high growth market opportunity. We believe that by combining Comtech's proprietary designs with Vishay's electronic component expertise we will be able to effectively leverage our relationships within China to competitively position both companies to win a portion of this new business."
Mr. Kang continued, "By entering the automobile electronics industry, we are capitalizing on our core module design competencies in the Telecom, Mobile and Digital Electronics Industries to further expand into other high growth markets in China. We expect sales of these products to begin this year and contribute more significantly to our future growth." |
