IDC, the research consulting, has released a landmark study mapping the very complex global PC supply chain. The study highlights key supply chain strategies and trends in the PC industry by identifying the linkages among PC semiconductor manufacturers, motherboard manufacturers, ODMs and EMS providers, and the branded PC OEMs.

Some of the major findings of this report according to EMS NOW are as follows:

- Cost pressure and competition continues to drive PC OEMs to outsource system assembly and testing to the EMS and ODM industry.

- PC components often do not end up in PCs. In 2006, more than five and a half million desktop processors ended up being used in other PC form factors and nearly two million were use in embedded applications.

- While the EMS and ODM industry manufactured virtually 100% of motherboards for desktops, just under one third of the final desktop computers were assembled by the industry.

Now that component manufacturers have found new customers for themselves, the critical question that comes to the mind is that is this issue will increase their bargaining power against PC makers or not?