Hangzhou Eastcom Cellular Phone Co. will purchase $20 million worth of SMT equipment and maintenance over the next three years, Autron Pte. said. Autron will also help manage Hangzhou's spare parts inventories.
The new center houses process R&D and remanufacturing facilities, spare parts, component engineering and demo lines.
With the refurbished equipment, the company also provides original documentation, genuine spare parts, software and component upgrade, and warranty and service support.
Engineers are trained at the original manufacturer's factories, Autron said.
The company estimates the market for refurbished equipment will reach $500 million in 2005.
In a statement, C. L Tan, group executive chairman, said ""We have spent the last 1½ years tediously building on our product and process knowledge, market research in the industry and working closely with customers to understand their concerns, fears and needs. The rebuilt equipment division is an important high margin growth engine of our solutions business model and we intend to dominate this space for long time to come."
Autron provides electronics assembly equipment and services including distribution services and manufacturing.
iSuppli forecasts worldwide semiconductor sales will hit $237.1 billion in 2005. The firm said last month that sales would grow 9.6% in 2005.
iSuppli cited lower sales forecasts for electronics equipment, which is expected to grow 6.2% in 2005, down from 10.1% this year.
The firm also cited growing chip stocks: excess inventories in the supply chain doubled last quarter, to $1.6 billion, iSuppli said.
2006 will mark the low point for IC sales, followed by a recovery in 2007 and 2008, iSuppli predicts.