Strategic partnership for CoMs
Kontron to cooperate with Congatec for Computer-on-Modules
Just a few months after bundling its business with plug-on Computer-on-Modules (CoMs) in its subsidiary JUMPtec GmbH, Kontron has agreed a far-reaching cooperation with the plug-on CoM manufacturer Congatec. Like JUMPtec, Congatec is based in Deggendorf, Bavaria.
Both the Kontron subsidiary JUMPtec and Congatec, a subsidiary of Deutsche Beteiligungs AG, offer plug-on CoMs according to the COM Express, COM-HPC, SMARC and Qseven standards. Kontron and Congatec have now signed a manufacturer cooperation agreement for these CoMs. According to the agreement, Kontron will also manufacture the CoMs of the fabless company Congatec in future; from Congatec's point of view, Kontron will be “added to the existing partners for the manufacture of CoMs”. There are also plans to extend the cooperation to other areas in the near future.
Under the agreement, Kontron will make its broad international production network available for the manufacture of Congatec CoMs. Due to the similarity of the JUMPtec and Congatec CoMs and higher production volumes, both Kontron and Congatec expect cost advantages and see themselves in a position to react optimally to the development of tariffs, particularly in the USA, through Kontron's production facilities there. In this respect, Congatec regards the co-operation as an important element of its strategy of pursuing a local-for-local approach to increase efficiency in the face of international trade disruptions and growing customer demand for geopolitical reasons.
Kontron, through its subsidiary Katek, manufactures as an original design manufacturer (ODM) expert in 21 locations worldwide and provides local services in various industries including medical, industrial automation, transportation, avionics, and defence. By utilising Kontron's local production facilities in the USA, Congatec expects significant cost benefits in addition to avoiding tariffs duties. In addition, Congatec will leverage Kontron's supply chain management, manufacturing and logistics capabilities to further expand its global reach and local presence in all regions of the world.
“The manufacturing cooperation with Kontron is a natural step because both companies share the same values and an innovative technology roadmap with strong partnerships with leading silicon manufacturers such as Intel, AMD, Qualcomm, Texas Instruments, and NXP,” explains Konrad Garhammer, COO and CTO of Congatec. Negotiations are also underway regarding further co-operation. Kontron and Congatec are discussing possible partnerships for development, know-how exchange and joint sales and marketing activities, which, subject to agreement, could also lead to Congatec acquiring an equity stake in JUMPtec.
