Original equipment manufacturer (OEM) and electronics manufacturing services (EMS) are two terms commonly used in the electronics industry. Here’s the difference between the two:
OEM is a company that designs and develops a product, including its specifications, features, and branding. OEMs own the intellectual property rights associated with the product, such as patents, trademarks, and copyrights. However, when it comes to the actual manufacturing process, OEMs often choose to outsource it to specialized companies.
EMS providers specialize in the manufacturing of electronic components, often as outsourced contract manufacturers. They offer a wide range of services to assist OEMs in bringing their products to market, including design for manufacturing (DFM), component sourcing, assembly, testing, and quality control. EMS companies have dedicated manufacturing facilities with advanced technologies and equipment to handle the production process efficiently.
While OEMs provide the design specifications and requirements, EMS providers take care of manufacturing the product accordingly. EMS providers offer their expertise, resources, and production capabilities to manufacture the electronics at scale, meeting the volume and quality demands of the OEM.