Foxconn Scores Another Coup with Kindle Fire Order

Taiwan-based OEM Foxconn is on track to manufacture up to 80% of worldwide tablet PC shipments after it secured a contract to assemble the 2nd generation of Amazon’s Kindle Fire tablets. The units are likely to begin shipments during the first half of 2012, according to sources cited by DigiTimes.

The latest order comes together with a report that Foxconn — the world’s leading consumer electronics contract manufacturer — has also been contracted to manufacture Sony’s Tablet S.

Amazon’s current generation Kindle Fire tablet is being assembled by Taiwan’s Quanta Computer. About five million units are projected to be sold in the fourth quarter. The 2nd-generation Kindle Fire will have 3G connectivity and a 10-inch screen, substantially larger than the current model’s 6-inch screen or the a 7-inch version set to ship November 15.

Foxconn is currently producing the Apple iPad 2. Adding the Kindle Fire and Sony Tablet S could make it the manufacturer of up to 80% of worldwide tablet PCs. That proportion will depend largely on the outcome of Samsung’s litigation with Apple. Samsung’s Galaxy Tab tablets are expected to enjoy large global sales if and when the various legal obstacles are cleared up.

Strong demand for the iPad 2 and iPhone 4S is expected to boost Foxconn’s 4th quarter growth to around 15%-20% over the third quarter. Foxconn has been investing in manufacturing plants in Brazil under a $12 bil., four-year deal that will entail free transfer of its production technology to its Brazilian partners in exchange for that nation’s plant investments and tax breaks. Foxconn and its partners will be opening an iPad2 plant in Jundiai, just outside Sao Paolo, in December.