Indirectly, CEMs may be feeding the frenzy of steadily rising capital spending at component manufacturers. Major CEMs, such as Solectron Corp. and Flextronics International Ltd., have to deliver products under a combination of tight OEM deadlines and severe component shortages. So, while adding manufacturing capacity by buying OEM plants or establishing plants in low-wage areas like China, Eastern Europe, and South America, they are themselves demanding that suppliers help meet production targets by delivering required quantities of scarce components.