Reports emerge that vendor is preparing offload business, however, is denied by chairman

MSI may sell OEM division

MSI has reportedly signalled its intentions to sell its OEM business with the firm planning to focus on its growing branded business, but chairman Joseph Hsu has rigorously denied speculation that it wants to offload the division, reports Digitimes.

The firm has been experiencing growing demand for its branded business while it has been continued to see low profits and margins from its OEM business as competition between suppliers grow.

According to reports, MSI has hired in an external consultancy firm and it is expected to recommend focusing on the vendor’s branded business, resulting in the sale of its OEM business unit.

However, the firm’s chairman Joseph Hsu has rigorously denied that the firm is interested in selling off its OEM division.

Sources speaking to Digitimes have said that EMS Flextronics is interested in acquiring the business and are in discussions with MSI over the transaction, with them citing the third quarter as the time when a deal is most likely.

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