Eyeing to cut costs, localise production, and tackle global trade tensions, German firm Kontron takes over the manufacturing of congatec’s computer-on-modules.
Embedded computing firms based in Germany, Kontron and congatec have announced a new manufacturing partnership focused on computer-on-modules (COMs), as both companies respond to shifting global trade dynamics and increasing demand for localised production.
Under the agreement, Kontron will take over manufacturing duties for congatec’s COM product lines, leveraging its international production network, 20 plants including facilities in North America. The move aims to streamline operations, reduce manufacturing costs, and improve flexibility amid ongoing supply chain uncertainty.
“Pooling our manufacturing resources makes sense in today’s climate,” said Rolf Brugger, Managing Director at JUMPtec GmbH, a Kontron subsidiary.
“Our facilities are positioned to support local-for-local strategies, especially in markets like the US where tariffs and trade conditions are evolving,” he said.
congatec, which currently operates without in-house production, sees the partnership as a strategic step.
“This agreement allows us to stay agile while ensuring our customers benefit from reliable, regionally based production,” said Martin Danzer, Director of Product Management at congatec. “It is a practical move in response to rising geopolitical risks and customer expectations.”
“The manufacturing cooperation with Kontron is a natural move, as both companies share the same values and innovative technology roadmap with powerful partnerships with leading silicon vendors including Intel, AMD, Qualcomm, Texas Instruments, and NXP,” explained Konrad Garhammer, COO and CTO of congatec.
Both companies develop COMs such as COM Express, COM-HPC, SMARC, and Qseven. The production collaboration may expand into other areas. Talks are ongoing regarding potential cooperation in product development and marketing, as well as a possible investment by congatec in JUMPtec.
While the companies maintain separate business models, the cooperation signals a growing trend toward consolidation and strategic partnerships in the embedded computing industry.
“This is not about merging companies, but about smart collaboration where it counts,” added Brugger.
Kontron, with a presence in over 20 countries, recently expanded its capabilities by acquiring Katek SE. congatec, backed by Deutsche Beteiligungs AG, continues to focus on embedded systems for industrial and medical markets. Both firms are known for their partnerships with chipmakers like Intel and AMD.
