OEM—OEM

The term "OEM" comes from OEM (Original Equipment Manufacturer), which means original equipment manufacturer in English. In my country, it is often called "OEM", "OEM production", "commissioned production", "commissioned processing", "OEM manufacturing", "production outsourcing", etc. from different perspectives.

Although the names are different, they all refer to a production and operation model in which companies with advantageous brands entrust other companies to process and produce products in order to reduce costs, shorten transportation distances, and seize the market. They also provide these production companies with product design parameters and technical equipment support to meet the requirements of product quality, specifications, and models, and the products produced are sold with the entrusting party's trademark.

The development history of OEM production:

OEM is an inevitable path under the trend of large-scale socialized production and large-scale cooperation. It is also one of the effective ways to rationalize resources and the result of large-scale socialized production. In Europe, as early as the 1960s, an industry association with OEM characteristics was established. In 1998, OEM production and trade reached 350 billion euros, accounting for more than 14% of Europe's total industrial output value. OEM production has become an important part of modern industrial production. With the further acceleration of the trend of economic globalization, OEM demanders may select OEM suppliers in a wider range, especially to countries and regions with low processing and manufacturing costs.

In Asia, Japanese companies were the first to adopt the international OEM production and trade format in order to quickly occupy the market and reduce production costs. The rise of the "Four Asian Tigers" is also closely related to OEM. Among them, Taiwan has long been the world's largest OEM base for PCs, and India has also become the world's largest exporter of computer software through OEM. In the IT industry, from technology to components to software functional modules, who is omnipotent?

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