Review of the article "Contract Manufacturer Flex Plans Southeast Asia Push"

  Lorraine Luk writes this article to tell readers that two important things are happening in global electronic companies. That is, on one hand, Flex and its rival Hon Hai are planning to build new sites in Southeast Asia and South Asia. On the other hand, technological innovations are been valued by not only contract factory, but also in venture capital firms. Flex is interested in technological innovations like wearable devices and even designed Flex Pulse application in factory displays. A famous venture-capital firm - GGV Capital is also focusing on innovative wearable applications.

  

  In the last few decades, contract manufactures are busy with expanding their business in Asia, especially in China. After years’ of development, with local consuming level updates and labor cost increases, it is necessary for these contractors to looking for potential market and factory sites for business expansion. There is no doubt that South Asia like India and Southeast Asia with large population and cheaper labors are good choice for them.

  

  As for technological innovation, there is a saying that science and technology change the society and make life better. GGVC was the early backer of Alibaba Group, which is the e-commerce giant who has changed people’s shopping life style in China and even the whole globe. It is a tendency that technology will gradually take big part of people’s life, and for its huge return on investment, technology innovation is the main investment field for venture capitals. In addition, armed with technology innovation in traditional electronic factories like Flex, it will create new business line and gain new growth with higher productivity.